Research On Dynamic Economic Benefits Evaluation Of The PS Station In Deregulated Electricity Market

The pumped water storage station (PS STATION) has unique technological characteristic and run under unique operating mode, so it can offer some kind of particular ancillary services and has important functions to the safety of the electricity system that cannot be substituted by other kind of generations. Analyses work on quantitative evaluation and calculation of these function's market value, namely the economic benefit, especially the dynamic benefit which serve as the major economic benefit, and let the research work go under the rules in a deregulated electricity market, is very important and significant to the healthily operation and development of the power system.The dynamic economic benefits of the PS STATION, whatsoever the benefit through the frequency modulation, phase modulation, the spinning and non-spinning reserve, or the load track following, or the black startup, are all brought by the uncertainty of both demand and supply in power systems in market view. The formally function of the PS STATION is to offer typical and timely ancillary services to the power system, but these services to be offered have obvious characteristic of uncertainty on both time and quantity. Because of this, hard problems come forth when calculate the dynamic economic benefits. In recent years, many research works have been done to solve the problem, including the complicated quantitative method of Monte Carlo simulation. But these work results such-and-such deficiencies: some of them are not based on a market background; some of them are lack of maneuverability in electric market. So up to the present we still cannot find a perfect solution that can be widely accepted and it's urgent to solve the question. In this dissertation a new model from a new angle of view is put forward to solve the question of dynamic economic benefits evaluation, and the establishment, calculation method of the model, and the market-dealing mode under this model are all discussed. The purpose is to open a new way to discuss the question, and help to solve the puzzle more rapidly.There already exist many research productions in financial economics, many trading methods to manage uncertainty and price risk, such as futures and options, and electricity-relative trade markets has already established in those countries that deregulated their electric industry in earlier year. This offer valuable tools and references to research in this dissertation. Research by work of this dissertation is based on relative theories using random analyses to manage price risks and the ancillary service trade via options, and bring about a new concept referred to the dynamic economic benefits of PS STATON in view of electric market, a new objective and applied electricity price stochastic model, an options price model (partial differential equation, PDE), the method to solve the PDE and its numerical solutions. It is showed by analyses that the evaluation approach, the trading method, the price model and the options pricing model are of certain novelty value, are both reasonable and feasible. The approach meets the request of the electricity market condition, and can be used for reference to other scholars or applied by relative power generators and...