Advanced bidding strategy for participation of energy storage systems in joint energy and flexible ramping product market

Recently, power system operators have initiated procurement of a new service in electricity markets named flexible ramping product (FRP). With the main goal of enhancing the grid flexibility, this product can provide a remarkable opportunity for an enhanced short-term profitability. Energy storage systems (ESSs) with high ramping capability can leverage their profitability when properly participating in this market. This study introduces a stochastic optimisation framework for participation of ESSs in the FRP market. The proposed model formulates the optimal bidding strategy of ESSs considering the real-time energy, flexible ramp-up and ramp-down marginal price signals and the associated uncertainties. In addition, as the market participants cannot directly submit bids for the FRP, the corresponding energy bidding adjustments required to award the proper FRP amounts are elaborated. The mathematical model is linearised and its application in real-time market is investigated. The proposed framework is numerically analysed through which its effectiveness on enhancing the ESS profitability in the real-time electricity markets is verified.