Market bidding for multiple photovoltaic-storage systems: A two-stage bidding strategy based on a non-cooperative game

Abstract

With the growth in the electricity market (EM) share of photovoltaic energy storage systems (PVSS), these systems encounter several challenges in the bidding process, such as the uncertainty involved in photovoltaics, limited bidding ability, and single-revenue structure, which significantly impact the market revenue. To address this research gap, a two-stage bidding strategy based on a non-cooperative game is proposed for PVSS to participate in energy and regulation markets. Considering the complexity of the PV output from adjacent multi-PVSSs, a scenario generation method considering spatiotemporal correlation is proposed. Furthermore, a two-stage bidding strategy is constructed, which includes a bi-level offer price model for the day-ahead (DA) market and a bi-level offer capacity model in the intraday (ID) market. In the DA stage, this study balances the interests of the PVSS and market-clearing costs and considers offer prices in the transaction process. In the ID stage, the market balance cost is considered to further increase the revenue of the PVSS. Moreover, the multi-PVSSs ‘competition relationship is analyzed to coordinate market revenues based on a non-cooperative game. The PVSS adjusts its offer by considering that other PVSSs plans to achieve the Nash equilibrium. The superiority of the proposed strategy was validated using an improved IEEE30 nodes system. Compared to the DA stage bidding strategy, adopting the two-stage bidding strategy can increase the revenue of the PVSS by 5.608%. Specifically, the proposed bidding strategy can increase the revenue of the PVSS by 4.993% compared with a cooperative bidding mode.