IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v17y2025i5p2074-d1601596.html
   My bibliography  Save this article

Research on Energy Storage Planning and Operation for New Energy in the Substitute Power Product Market

Author

Listed:
  • Haozhi Zhang

    (Department of Electrical Engineering, University of Shanghai for Science and Technology, 516 Jungong Road, Yangpu District, Shanghai 200093, China)

  • Haibing Wang

    (Department of Electrical Engineering, University of Shanghai for Science and Technology, 516 Jungong Road, Yangpu District, Shanghai 200093, China)

Abstract

To address the challenges in new power systems, such as wind and photovoltaic curtailment and insufficient energy storage incentives, caused by imbalances in the regulation of power supply and demand, the academic community has proposed the substitute power product (SPP) market, which is based on the trading of prescribed generation shapes over defined periods. However, there is currently no literature addressing the optimization strategies for market participants within the SPP market trading model. To fill this gap, this study introduces, for the first time, an energy storage planning and optimization operation strategy for wind and photovoltaic energy stations within this market framework. First, the basic trading process and related concepts of the SPP market are introduced. Then, based on the operational logic of the SPP market, a multi-stage energy storage planning and operation strategy is proposed for wind and photovoltaic stations. This strategy integrates a two-level model with a multi-scenario stochastic planning model to optimize the storage capacity and power allocation of renewable energy stations under uncertainty. Subsequently, relevant metrics for the SPP market are introduced, and these metrics are used to quantitatively analyze the feasibility of cooperation among different renewable energy stakeholders in the market. Finally, the impact of regulation power prices on the decision-making of renewable energy stations participating in the SPP market is explored. The findings of this study provide new energy producers with a preliminary optimization solution for energy storage configuration and operation under the new trading model, promoting their participation in the SPP market and contributing to the acceleration of the low-carbon transformation of power systems.

Suggested Citation

  • Haozhi Zhang & Haibing Wang, 2025. "Research on Energy Storage Planning and Operation for New Energy in the Substitute Power Product Market," Sustainability, MDPI, vol. 17(5), pages 1-23, February.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:5:p:2074-:d:1601596
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/17/5/2074/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/17/5/2074/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Wang, Haibing & Wang, Fengxia & Han, Dong & Sun, Weiqing, 2024. "Multi-time scale optimal configuration of user-side energy storage considering demand perception," Renewable Energy, Elsevier, vol. 237(PA).
    2. Ding, Jie & Xu, Yujie & Chen, Haisheng & Sun, Wenwen & Hu, Shan & Sun, Shuang, 2019. "Value and economic estimation model for grid-scale energy storage in monopoly power markets," Applied Energy, Elsevier, vol. 240(C), pages 986-1002.
    3. Lu, Xiaoxing & Li, Kangping & Xu, Hanchen & Wang, Fei & Zhou, Zhenyu & Zhang, Yagang, 2020. "Fundamentals and business model for resource aggregator of demand response in electricity markets," Energy, Elsevier, vol. 204(C).
    4. Fang, Xichen & Guo, Hongye & Zhang, Xian & Wang, Xuanyuan & Chen, Qixin, 2022. "An efficient and incentive-compatible market design for energy storage participation," Applied Energy, Elsevier, vol. 311(C).
    5. Malte Meinshausen & Nicolai Meinshausen & William Hare & Sarah C. B. Raper & Katja Frieler & Reto Knutti & David J. Frame & Myles R. Allen, 2009. "Greenhouse-gas emission targets for limiting global warming to 2 °C," Nature, Nature, vol. 458(7242), pages 1158-1162, April.
    6. Wang, Haibing & Zhao, Anjie & Khan, Muhammad Qasim & Sun, Weiqing, 2024. "Optimal operation of energy hub considering reward-punishment ladder carbon trading and electrothermal demand coupling," Energy, Elsevier, vol. 286(C).
    7. Wang, Haibing & Zheng, Tianhang & Sun, Weiqing & Khan, Muhammad Qasim, 2023. "Research on the pricing strategy of park electric vehicle agent considering carbon trading," Applied Energy, Elsevier, vol. 340(C).
    8. Xiao, Jucheng & He, Guangyu & Fan, Shuai & Li, Zuyi, 2022. "Substitute energy price market mechanism for renewable energy power system with generalized energy storage," Applied Energy, Elsevier, vol. 328(C).
    9. Camilo Mora & Bénédicte Dousset & Iain R. Caldwell & Farrah E. Powell & Rollan C. Geronimo & Coral R. Bielecki & Chelsie W. W. Counsell & Bonnie S. Dietrich & Emily T. Johnston & Leo V. Louis & Matthe, 2017. "Global risk of deadly heat," Nature Climate Change, Nature, vol. 7(7), pages 501-506, July.
    10. Jin, Xiaolong & Wu, Qiuwei & Jia, Hongjie, 2020. "Local flexibility markets: Literature review on concepts, models and clearing methods," Applied Energy, Elsevier, vol. 261(C).
    11. Eid, Cherrelle & Codani, Paul & Perez, Yannick & Reneses, Javier & Hakvoort, Rudi, 2016. "Managing electric flexibility from Distributed Energy Resources: A review of incentives for market design," Renewable and Sustainable Energy Reviews, Elsevier, vol. 64(C), pages 237-247.
    12. Yijing Wang & Rong Wang & Katsumasa Tanaka & Philippe Ciais & Josep Penuelas & Yves Balkanski & Jordi Sardans & Didier Hauglustaine & Wang Liu & Xiaofan Xing & Jiarong Li & Siqing Xu & Yuankang Xiong , 2023. "Accelerating the energy transition towards photovoltaic and wind in China," Nature, Nature, vol. 619(7971), pages 761-767, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Karim L. Anaya & Michael G. Pollitt, 2021. "How to Procure Flexibility Services within the Electricity Distribution System: Lessons from an International Review of Innovation Projects," Energies, MDPI, vol. 14(15), pages 1-26, July.
    2. Ajla Mehinovic & Matej Zajc & Nermin Suljanovic, 2023. "Interpretation and Quantification of the Flexibility Sources Location on the Flexibility Service in the Distribution Grid," Energies, MDPI, vol. 16(2), pages 1-18, January.
    3. Ali Darudi & Hannes Weigt, 2024. "Review and Assessment of Decarbonized Future Electricity Markets," Energies, MDPI, vol. 17(18), pages 1-38, September.
    4. Wang, Haibing & Zhu, Libo & Sun, Weiqing & Khan, Muhammad Qasim & Liu, Bin, 2024. "Research on energy pricing of the hydrogen refueling station based on master-slave game in multi-market," Applied Energy, Elsevier, vol. 373(C).
    5. Tang, Hong & Wang, Shengwei, 2022. "Multi-level optimal dispatch strategy and profit-sharing mechanism for unlocking energy flexibilities of non-residential building clusters in electricity markets of multiple flexibility services," Renewable Energy, Elsevier, vol. 201(P1), pages 35-45.
    6. Guray Kara & Asgeir Tomasgard & Hossein Farahmand, 2021. "Characterization of flexible electricity in power and energy markets," Papers 2109.03000, arXiv.org.
    7. Tsaousoglou, Georgios & Giraldo, Juan S. & Paterakis, Nikolaos G., 2022. "Market Mechanisms for Local Electricity Markets: A review of models, solution concepts and algorithmic techniques," Renewable and Sustainable Energy Reviews, Elsevier, vol. 156(C).
    8. Xiao, Jucheng & He, Guangyu & Fan, Shuai & Li, Zuyi, 2022. "Substitute energy price market mechanism for renewable energy power system with generalized energy storage," Applied Energy, Elsevier, vol. 328(C).
    9. Gržanić, M. & Capuder, T. & Zhang, N. & Huang, W., 2022. "Prosumers as active market participants: A systematic review of evolution of opportunities, models and challenges," Renewable and Sustainable Energy Reviews, Elsevier, vol. 154(C).
    10. Piao, Longjian & de Vries, Laurens & de Weerdt, Mathijs & Yorke-Smith, Neil, 2021. "Electricity markets for DC distribution systems: Locational pricing trumps wholesale pricing," Energy, Elsevier, vol. 214(C).
    11. Boehnke, Florian & Kramer, Hendrik & Weber, Christoph, 2025. "The value of decentral flexibility in nodal market design – A case study for Europe 2030," Energy Policy, Elsevier, vol. 196(C).
    12. Aikaterini Forouli & Emmanouil A. Bakirtzis & Georgios Papazoglou & Konstantinos Oureilidis & Vasileios Gkountis & Luisa Candido & Eloi Delgado Ferrer & Pandelis Biskas, 2021. "Assessment of Demand Side Flexibility in European Electricity Markets: A Country Level Review," Energies, MDPI, vol. 14(8), pages 1-23, April.
    13. Kara, Güray & Pisciella, Paolo & Tomasgard, Asgeir & Farahmand, Hossein & Crespo del Granado, Pedro, 2022. "Stochastic local flexibility market design, bidding, and dispatch for distribution grid operations," Energy, Elsevier, vol. 253(C).
    14. Kara, Güray & Tomasgard, Asgeir & Farahmand, Hossein, 2022. "Characterizing flexibility in power markets and systems," Utilities Policy, Elsevier, vol. 75(C).
    15. Fankhauser, Samuel & Hepburn, Cameron, 2010. "Designing carbon markets. Part I: Carbon markets in time," Energy Policy, Elsevier, vol. 38(8), pages 4363-4370, August.
    16. van den Bergh, J.C.J.M. & Botzen, W.J.W., 2015. "Monetary valuation of the social cost of CO2 emissions: A critical survey," Ecological Economics, Elsevier, vol. 114(C), pages 33-46.
    17. Simon Levin & Anastasios Xepapadeas, 2021. "On the Coevolution of Economic and Ecological Systems," Annual Review of Resource Economics, Annual Reviews, vol. 13(1), pages 355-377, October.
    18. Cheng, Fang & Liu, Hui, 2024. "Multi-step electric vehicles charging loads forecasting: An autoformer variant with feature extraction, frequency enhancement, and error correction blocks," Applied Energy, Elsevier, vol. 376(PB).
    19. Kriegler, Elmar, 2011. "Comment," Energy Economics, Elsevier, vol. 33(4), pages 594-596, July.
    20. Sam Fankhauser & Cameron Hepburn, 2009. "Carbon markets in space and time," GRI Working Papers 3, Grantham Research Institute on Climate Change and the Environment.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:17:y:2025:i:5:p:2074-:d:1601596. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.