Source-load cooperative multi-modal peak regulation and cost compensation mechanism in China's ancillary service electricity market

To enhance the market participation initiatives from the power source and load sides, we propose a novel power system optimal scheduling and cost compensation mechanism for China's peak regulation ancillary service market. Owing to China's energy structure, thermal power accounts for nearly half of the country's installed power generation capacity. Although the willingness of thermal power units to participate in peak regulation auxiliary services is low, we propose a peak regulation cost compensation and capacity-proportional allocation mechanism. This mechanism comprehensively considers the source-load initiative. From the source side, it encourages entities to participate in peak regulation, and the restriction of the peak regulation initiative is set to ensure that each entity benefits from the peak regulation transaction. From the load side, it takes the shiftable and sheddable load as the hybrid demand response and uses the price information to influence the power consumption behavior of the user side. Subsequently, a peak regulation scheduling model was constructed with the multi-objective minimum thermal power output fluctuation of the lowest system operating cost and minimum renewable energy abandonment. This was solved using a mixed-integer linear programming model and CPLEX. Finally, a power system consisting of wind-solar-hydro-thermal-storage and hybrid demand response with a modified IEEE 30-bus system was tested to verify the effectiveness. It was proven that the proposed method improves the utilization rate of renewable energy and optimizes the scheduling of the economic benefit system of each power generation entity.