A Deep Peak Regulation Auxiliary Service Bidding Strategy for CHP Units Based on a Risk-Averse Model and District Heating Network Energy Storage

Abstract

With the advance of China’s power system reform, combined heat and power (CHP) units can participate in multi-energy market. In order to maximize CHP profit in a multi-energy market, a bidding strategy for deep peak regulation auxiliary service of a CHP based on a two-stage stochastic programming risk-averse model and district heating network (DHN) energy storage was proposed. The quotation set of competitors and load uncertainty was modeled with a Latin hypercube sampling (LHS) method. A dynamic queuing method was used to clear the market for the deep peak regulation auxiliary service to determine the bidding capacities of CHPs in the electricity market and the deep peak regulation auxiliary service market, respectively. Finally, the conditional value-at-risk (CVaR) indicator is used to measure the risk brought by the system uncertainty to the CHP, and the quotation coefficient is determined after considering the expected profit and risk profit comprehensively. The results of the example show that the profits produced by simultaneous participation in both electricity market and the deep peak regulation auxiliary service market are increased by approximately 9.5% compared with the profits produced by only participation in a single market. In addition, the use of DHN energy storage led to a profit increase of approximately 4.6%. As the risk aversion coefficient increases, the expected profit will be further reduced.