This paper develops bidding strategy for operating pumped storage power plant in a combined pool-bilateral market. 1 / 0 /-1 mixed-integer programming model to account discrete tri-state operation of pumped storage plant is developed and multi-looping sequential optimization approach is used to solve the problem. Considering realistic case study, operating strategies for the pumped storage plant are evaluated. Operating pumped storage plant in an electricity market can lead to significant changes in the consumer and producer surplus, energy prices and market efficiency. This paper investigates how integration of pumped storage energy trade affects the net welfare of electricity market.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.