Economic Analysis of a Pumped Hydroelectric Storage-Integrated Floating PV System in the Day-Ahead Iberian Electricity Market

Abstract

This study identifies the optimal operational strategy for floating photovoltaic power plants and pumped hydroelectric power plants in the day-ahead Iberian electricity market. Different operating scenarios were analysed based on forecast accuracy in addition to any deviations occurring in the day-ahead market, taking into account the rules of the electricity market and the technical operational limitations of both plants. These scenarios show the choice between the independent mode of operation and the joint mode of operation of both plants. Five scenarios have been studied, with upward and downward deviations of (Formula presented.), (Formula presented.), (Formula presented.) and (Formula presented.) considered. These scenarios can be classified into two groups. If there are deviation penalties, group 1; or without deviation penalties, group 2. Scenarios 3 and 4 belong to the first group and scenarios 1, 2 and 5 to the second group. In the scenarios of the first group, the price deviations are used, and in the scenarios of the second group, the marginal market price is used. The economic benefit of the scenarios with deviation penalties is obtained in the joint operation mode of both plants. Economic benefits of up to 35% are obtained. In contrast, in the scenarios where there are no deviation penalties, the independent mode of operation is the optimum. The reason for this is the low efficiency of the pumping process. In this case, economic benefits of 1.6% are obtained. This study can be used to guide the decision-making process in the operation of both plants in order to maximise the economic benefit.