Trading of pumped storage hydropower plants on energy only and ancillary services markets

This paper gives a solution to the question on how much secondary control reserve (SCR) should be offered from a hydro power storage from the perspective of a generator. We compare revenue and costs and derive the economically reasonable amount of SCR. The cost side is calculated using a hydro power storage scheduling optimization program. The income side is determined by a model that optimizes the income of the SCR capacity as well as the SCR energy auction. The underlying goal is to maximize the profit for the participating generator. We use historical prices to generate optimal results for a 100 MW pumped hydro power storage.