| Title |
Developing Multiple-ESSs Operation Strategies by Participating in the FTR Market to Maximize Profits |
| Authors |
고영준(Young-Jun Go) ; 임정협(Jung-Hyeop Im) ; 고태웅(Tae-Ung Go) ; 이두희(Duehee Lee) |
| DOI |
https://doi.org/10.5370/KIEE.2025.74.10.1652 |
| Keywords |
Locational marginal price; Financial transmission rights; Operational intensity factor; Conjectural variation coefficients |
| Abstract |
We develop profit-maximizing operational strategies for two energy storage systems (ESSs) strategically participating in financial transmission rights (FTR) auctions. The proposed strategies optimize ESS charge/discharge schedules and bidding decisions. At the bidding stage, ESSs deliberately adjust the locational marginal price (LMP) spread on targeted transmission paths by controlling their charging and discharging amounts. This adjustment strategically influences FTR market clearing prices. At the settlement stage, ESSs further maximize the LMP spread and maximize FTR settlement profits. A conjectural variation parameter is introduced to quantify ESSs' strategic bidding intensity. We develop a simulation that demonstrates how ESSs can act as strategic participants to effectively exploit profit opportunities in FTR markets. |