Bidding strategy of independent energy storage based on CVaR in power spot market

With the rapid development of renewable energy and the ongoing marketization of energy storage, independent energy storage (IES) faces risks arising from source-load uncertainties in spot market transactions. To better ensure the profitability of IES, this paper proposes a day-ahead bidding strategy for IES considering Conditional Value-at-Risk (CVaR). First, a bidding strategy bi-level optimization model with IES as the decision-making entity is formulated, where the upper-level model aims to maximize the market revenue of IES while incorporating CVaR as a risk management measure, and the lower-level model aims to minimize the power purchase cost of the market operator, performing the joint clearing of the energy and frequency regulation market. Then, the proposed model is transformed and solved using the Karush-Kuhn-Tucker conditions and strong duality theory. Finally, a case study based on a specific region is conducted to verify the rationality and effectiveness of the proposed model.