Value of perfect information of spot prices in the joint energy and reserve hourly scheduling of pumped storage plants

Abstract

The value of perfect information of the day-ahead energy prices is studied in the context of the operation of a closed-loop and daily-cycle pumped-storage hydropower plant, participating in the spot market as a price-taker and in the secondary regulation reserve market as a price-maker, and also considering the secondary regulation energy due to the real-time use of reserves. Results show that the percentage of the profit loss with respect the maximum theoretical income due to the errors in forecasting the spot prices in the Iberian electricity market decreases if the plant also participates in the secondary regulation service.The value of perfect information of the day-ahead energy prices is studied in the context of the operation of a closed-loop and daily-cycle pumped-storage hydropower plant, participating in the spot market as a price-taker and in the secondary regulation reserve market as a price-maker, and also considering the secondary regulation energy due to the real-time use of reserves. Results show that the percentage of the profit loss with respect the maximum theoretical income due to the errors in forecasting the spot prices in the Iberian electricity market decreases if the plant also participates in the secondary regulation service.