<p>This paper develops optimal bidding strategies for a pumped storage plant in competitive electricity market. In a restructured environment, when compared to a simple hydro electric generator, the profit of the pumped storage plant is maximized by operating it as a generator when market clearing price is high and as a pump when price is low. Based on forecasted hourly market clearing price curves, a multistage looping algorithm to maximize the profit of a pumped storage plant is developed considering both the spinning and non-spinning reserve bids and meeting the technical operating constraints. The proposed model is adaptive for the nonlinear three-dimensional relationship between the power produced, the energy stored, and the head of the associated reservoir. Different operating cycles for the storage plant are considered and simulation results are reported and analyzed.</p>
Dr. P. Kanakasabapathy and K Swarup, S., “Optimal Bidding Strategies for Pumped Storage Plant in Pool-Based Electricity Market”, in Fifteenth National Power Systems Conference (NPSC), IIT, Bombay, India, 2008.