Strategic Storage Operation in Energy and Reserve Markets : An AC-based Bilevel Approach

Title data

Guo, Peiyao ; Yuan, Zhao ; Hamacher, Thomas ; Perić, Vedran S.:
Strategic Storage Operation in Energy and Reserve Markets : An AC-based Bilevel Approach.
In: 2023 IEEE Power & Energy Society General Meeting (PESGM). - Orlando, FL, USA , 2023
DOI: https://doi.org/10.1109/PESGM52003.2023.10252881

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Abstract in another language

This paper proposes an AC-based bilevel Stackelberg game model to study the strategic storage operation in energy and reserve markets. In the upper-level problem, the price-maker storage bids and offers strategically to maximize its profit. The lower-level problem is the market-clearing problem based on alternating current optimal power flow (ACOPF) model. To obtain the global solution of the proposed model, we first linearize the ACOPF model and reformulate the bilevel model into a mathematical program with equilibrium constraints (MPEC). A six-bus illustrative example is used to compare and discuss strategic and centralized non-strategic storage operation behaviors and their impacts on the market-clearing outcomes.