Optimal bidding strategy with ancillary services in hybrid competitive markets

In competitive power markets, the reliable and continuous supply required for maintaining the power market's economic sustainability and the same is also useful for receiving a correct economic signal by the various market players. Some ancillary services are required to decrease the fluctuations created by wind power plants and maintain continuity reliability of supply to the end-use customers in the power market. This paper presents an optimal bidding strategy for effective coordination of wind power plant (WPP) and pumped storage plant (PSP) in day-ahead energy and ancillary services like spinning reserve (SR) and fast responsive reserve (FRR) in the power market. The coordinated operation of PSP with WPP has been considered to decrease the intermittency of available wind power supplied to the grid. The obtained revenue in both cases (SR and FRR) are compared. The results demonstrate that the coordination of PSP andWPP reduces the imbalances in bids, penalties in the day-ahead ancillary service, and energy markets (AS & EMs) with simultaneous maximum revenue achieved by both PSP and WPP.