Peak shaving auxiliary service analysis for the photovoltaic and concentrating solar power hybrid system under the planning-dispatch optimization framework

•The CSP participates in peak shaving AS market actively.•Two mechanisms of peak shaving AS market are proposed and compared.•The interval quotation for CSP in two mechanisms are considered.•Two configurations of the CSP–PV hybrid system are obtained. Concentrating solar power (CSP), being one of the key stakeholders in the peak shaving auxiliary service (AS) market, possesses distinct advantages due to its characteristics of energy storage, sustainability, and adjustability. Nevertheless, the market mechanism for CSP in the peak shaving AS is still in its nascent stage, particularly in the northwest region of China where thermal power dominates and there are bundled large-scale photovoltaic developments. Exploring strategies to capitalize on the peak shaving benefits of CSP, mitigate system operation costs, and enhance the revenue generation of CSP entities has emerged as a prominent area of research. This study establishes a planning-dispatch double-layer optimization model. Two mechanisms respectively based on the unit load rate (ULR) and peak shaving contribution (PSC) are proposed and examined, and the bidding range and quotation range for peak shaving of CSP under the two mechanisms are suggested according to the cost of the peak shaving capacity of CSP. The proposed model is analyzed using the improved IEEE 30-bus system. The results show that the capacity ratio of photovoltaic and CSP determines the functional position of CSP. Optimizing TES capacity and installed capacity of PV power can maximize the peak shaving capacity of CSP, while simultaneously reducing the peak shaving demand on thermal power plants, power system dispatching costs, and the LCOE of the CSP–PV hybrid system. The comprehensive economic benefit of the hybrid system increases by 2.93% under the PSC-based mechanism than that under the ULR-based mechanism. In comparison to the nonpeak shaving case under the ULR-based mechanism, the CSP–PV hybrid system exhibited a 3.74% increase in net revenue in the high peak shaving demand scenario. Furthermore, the comprehensive economic benefit of the CSP–PV hybrid system improved by 3.80% over the full life cycle, while the PV curtailment experienced a 2.50% decrease.