Profitability improvement of a reservoir power station based on virtual reservoir bidding

Abstract

Compared with a run-of-river power station, a reservoir power station (RPS), with the capacity of a seasonal regulation function and more, has the unique and irreplaceable attributes of its role in the power grid and society at large. However, under the current power system and market environment in China, these attributes cannot be effectively utilised, resulting in heavy losses to enterprises. It is inevitable for RPSs to participate in the market; therefore, how to improve the profitability of RPS enterprises has become an urgent problem requiring a solution. Based on the control effect on run-off of RPS in a river basin, a new cascade hydropower bidding method and the associated bidding process are proposed. The market entities of the new bidding method are composed of cascade hydropower joints with the RPS as the boundary. The bidding unit benefit-sharing mechanism is constructed, and the accounting method for the benefit-sharing price of the RPS is established, which finally achieves the goal of improving the profitability of the RPS enterprise.