Abstract:With the increasing penetration of new energy, the demand for flexible regulation resources is increasing year by year. Pumped storage can effectively alleviate the problem of "peak-valley contradiction" caused by new energy grid connection, and it is urgent to study the mechanism of pumped storage participating in electricity market and the cost-benefit model under different operation modes. Firstly, the operation mechanisms of five pumped storage power stations are sorted out, and then an optimization model of pumped storage capacity allocation based on the stocked coal power is constructed. The results show that under the background of stocked coal power, the coal-fired power units should be flexibly reformed, so that all the coal-fired power units are in start-up state, the minimum technical output is maintained throughout the day, and the corresponding capacity of pumped storage is configured based on the minimum equivalent load. Finally, the cost-benefit model of pumped storage power station under different operation modes is established. The research results show that in the fully market-oriented mode, the electric energy income of pumped storage power station accounts for 67%, the auxiliary service income of frequency modulation accounts for 16%, the auxiliary service income of standby accounts for 2%, and the auxiliary service income of reactive power and black start accounts for 15%.