Research on Price Mechanism for Pumped-Storage Power Station in Power System Including Large-Scale Wind Farms

To improve the energy utilization efficiency of power systems and solve the bottleneck problem of wind power development, the combined operation mode of wind power and pumped storage power could be adopted where there were some water resources. Based on the analysis the impact of large-scale wind power farm on the grid and the necessity of combined operation, considering the current price mechanism in China, this paper applies the incentive compatibility principle to propose the two-part electricity price for pumped-storage power station mode based on correctly guide the investment of power station and promoting the safe and economical operation of power system. It is able to encourage the combined mode. In the end, examples results show the two-part electricity price for pumped-storage power station can effectively encourage the combined operation mode and promote the wind power industry healthy development.