10.57647/ijeee.2025.1604.16

SARSA: A Novel model for Market Trading Mechanisms and Operational Strategies for Multi-Type Energy Storage Systems in Power Markets

PDF
  • Bin Zhao*1,
  • Lining Wang1,
  • Bo Wei1,
  1. China Energy Qinghai Electric Power Co., Ltd., 810001, China

Received: 2025-07-07

Accepted: 2025-11-11

Published in Issue 2025-12-31

Copyright (c) 2025 Bin Zhao, Lining Wang, Bo Wei (Author)

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

How to Cite

Zhao, B., Wang, L., & Wei, B. (2025). SARSA: A Novel model for Market Trading Mechanisms and Operational Strategies for Multi-Type Energy Storage Systems in Power Markets. International Journal of Energy and Environmental Engineering, 16(04). https://doi.org/10.57647/ijeee.2025.1604.16
Crossref
Scopus
Google Scholar
Europe PMC

PDF views: 64

Abstract

To maximize performance and profitability, power markets may use a variety of trading methods and operational techniques for multi-type energy storage systems.  In accordance with the capacity and structure of the market, these systems may take part in energy markets, supplementary services markets, along with local or P2P marketplaces.  With the use of pricing signals and demand estimates, operational strategies aim to maximize income through intelligently charging and releasing the various storage kinds.  Regional distribution networks that rely on distribution network operators can now quantitatively determine their energy storage supply and demand with the help of this study's suggested approach for determining Hybrid Golden Flower Pollination (HGFP) Method energy storage action deviations. This method will be crucial for their future participation in market trading.  Second, taking into account the economic advantages for all parties involved, the study created a pricing mechanism that incorporates a valley compensation mechanism to encourage autonomous and active user participation using the SARSA Deep Learning technique. The trading mechanism relies on combinatorial auctions and accommodates various types of market participants.  Taking into consideration the variations in HGFP energy storage action when different regional networks are involved, numerical simulations were run to confirm the trading mechanism's practicality and rationale.

Keywords

  • Multi-Type Energy Storage Systems,
  • Power Market,
  • Market Trading Mechanisms,
  • Hybrid Golden Flower Pollination,
  • SARSA Deep Learning technique
PDF

References

  1. Yu, J., Du, F., Fan, F., Zhang, X., Chen, X., & Qin, Y. (2024). Resource Allocation Method for Grid-Side Hybrid Energy Storage Considering Bidding and Operation Strategies. 2024 IEEE 8th Conference on Energy Internet and Energy System Integration (EI2), 2189-2194.
  2. Lago, J., Suryanarayana, G., Sogancioglu, E., & de Schutter, B. (2021). Optimal Control Strategies for Seasonal Thermal Energy Storage Systems With Market Interaction. IEEE Transactions on Control Systems Technology, 29, 1891-1906.
  3. Song, W., Jin, Q., Zhang, K., Zhu, Q., Kang, K., & Jia, H. (2025). Decision-Making in Energy Storage Participation in Multi-Variety Power Market Transactions. 2025 10th Asia Conference on Power and Electrical Engineering (ACPEE), 1827-1835.
  4. Xiang, Z., Huang, C., & Li, K. (2023). Strategic Bidding of Load Aggregator in Demand Response Market Considering Shared Energy Storage. 2023 IEEE/IAS Industrial and Commercial Power System Asia (I&CPS Asia), 2273-2280.
  5. dos Santos, A.F., & Saraiva, J.T. (2023). Decentralized and Centralized Storage Architectures in Local Energy Markets (LEM) and Their Interaction with the Wholesale Market (WSM). 2023 IEEE Belgrade PowerTech, 1-6.
  6. Huang, F., Fan, H., Shang, Y., Wei, Y., Almutairi, S.Z., Alharbi, A.M., Ma, H., & Wang, H. (2024). Research on Renewable Energy Trading Strategies Based on Evolutionary Game Theory. Sustainability.
  7. Alabdullatif, A.M., Gerding, E.H., & Perez-Diaz, A. (2020). Market Design and Trading Strategies for Community Energy Markets with Storage and Renewable Supply. Energies.
  8. Yang, P., Li, X., Yang, C., & Chen, L. (2025). A Dynamic Pricing Model Incorporating Renewable Energy Station Out-put Forecast Deviation and Shared Energy Storage State of Charge. 2025 10th Asia Conference on Power and Electrical Engineering (ACPEE), 2399-2404.
  9. Tadayon, L., & Frey, G. (2025). Multi-Level Simulation Framework for Degradation-Aware Operation of a Large-Scale Battery Energy Storage Systems. Energies.
  10. Rajah, I., Sowe, J., Schimpe, M., & Barreras, J.V. (2024). Degradation-Aware Derating of Lithium-Ion Battery Energy Storage Systems in the UK Power Market. Electronics.
  11. Hu, D., Bian, H., Wang, X., Zhang, Z., & Ma, L. (2024). Research on quotation strategy and clearing model of energy storage participating in power market. 2024 IEEE 4th International Conference on Information Technology, Big Data and Artificial Intelligence (ICIBA), 4, 26-30.
  12. Lu, K., Hong, C., Lian, J., & Cheng, F. (2025). A Review of Synergies Between Advanced Grid Integration Strategies and Carbon Market for Wind Energy Development. Energies.
  13. Jia, K., Zhang, S., Islam, M.M., Yu, T., Ying, W., & Zhao, Y. (2024). Optimization of Multi-Microgrid Energy Trading in Distribution Networks Using a Master-Slave Game Approach. 2024 IEEE International Humanitarian Technologies Conference (IHTC), 1-6.
  14. Yao, H., Hakimian, V., Farrokhabadi, M., & Zareipour, H. (2025). Emission-Aware Operation of Electrical Energy Storage Systems. ArXiv, abs/2506.16454.
  15. Yang, K., Yu, Q., Wu, J., & Lin, W. (2025). Research on Optimal Scheduling of Multi-micro-grid-Shared Energy Storage Power Station Based on Improved Vulture Algorithm. 2025 8th International Conference on Energy, Electrical and Power Engineering (CEEPE), 1308-1313.
  16. Yang, K., Sun, Q., Fan, H., Li, J., Wang, Y., & Zhang, W. (2022). Joint Operation Strategy of Electrochemical Energy Storage Station Participating in Multi-type Electricity Markets. 2022 IEEE Transportation Electrification Conference and Expo, Asia-Pacific (ITEC Asia-Pacific), 1-6.
  17. Yang, D., Wei, Y., Li, M., Xu, G., & Zhao, L. (2023). A Multi-type Market Joint Optimization Model Considering Energy Storage Participation. 2023 5th International Conference on Power and Energy Technology (ICPET), 1693-1698.
  18. Xiao, D., Chen, H., Cai, W., Wei, C., & Zhao, Z. (2023). Integrated risk measurement and control for stochastic energy trading of a wind storage system in electricity markets. Protection and Control of Modern Power Systems, 8, 1-11.
  19. Wei, B., Qiao, W., Teng, M., Zhang, Y., He, P., Yang, J., Li, J., & Yanan, Z. (2024). Multi-type Energy Storage Planning Method for A High Proportion of New Energy Power Systems. 2024 4th Power System and Green Energy Conference (PSGEC), 586-592.
  20. Nolzen, N., Leenders, L., & Bardow, A. (2023). Flexibility-expansion planning of multi-energy systems by energy storage for participating in balancing-power markets. Frontiers in Energy Research.
  21. Bai, J., Ding, T., Feng, S., Sun, Y., Zhu, J., & Su, F. (2023). Demand Response by Urban Multi-type Load Aggregators and Storage Systems in Power Grid. 2023 International Conference on Future Energy Solutions (FES), 1-6.
  22. Hu, J., Meng, Z., Huang, B., Li, N., Shi, Z., & Sun, B. (2023). Optimal configuration method of energy storage in provincial power system based on multi-type flexible resource scheduling priority. 2023 3rd International Conference on Intelligent Power and Systems (ICIPS), 703-706.
  23. Zhou, T., Zhanga, C., Liu, Z., Wang, S., Zhao, Z., & Tang, F. (2024). Optimization strategy of multi-type energy storage considering carbon constraints. 2024 6th International Conference on Energy, Power and Grid (ICEPG), 312-317.
  24. Yang, G., Zhu, Y., Lai, R., Li, J., Chen, H., & Pan, P. (2023). Modelling of Optimal scheduling scheme for a power system operation with multi-energy storage systems. 2023 6th International Conference on Renewable Energy and Power Engineering (REPE), 276-282.
  25. Chu, Y., Yang, H., Ma, Y., Sun, L., Yang, Z., & Xie, X. (2023). Multi-type Energy Storage System Operation Strategy Based on Grouping State of Charge Regulation. 2023 IEEE 7th Conference on Energy Internet and Energy System Integration (EI2), 4692-4697.