Offer strategy for a wind power producer in day-ahead market

Energy conversion from renewable energy has been possible due to extra-market supporting policies. The extra-market approach survives for low penetration levels, but as energy from wind penetration increases the extra-market policies are expected to become untenable. A wind power producer (WPP) should expect full competition in deregulated electricity market, i.e., has to have an offer strategy to be competitive. A WPP has to face uncertainties on available wind energy and market prices. Uncertainties have to be conveniently addressed; otherwise a decrease on the financial results is expected. A stochastic programming approach is presented to suitable address those uncertainties. The problem formulation is approached in the way of writing equations in order to benefit from the well-established mixed integer linear program (MILP) solvers in order to compute an offering strategy. A case study with data from the Iberian Electricity Market is used to illustrate the effectiveness of the proposed approach.

[1]  Nima Amjady,et al.  Mixed price and load forecasting of electricity markets by a new iterative prediction method , 2009 .

[2]  G. Strbac,et al.  Trading Wind Generation in Short-Term Energy Markets , 2002, IEEE Power Engineering Review.

[3]  L. Soder,et al.  Minimization of imbalance cost trading wind power on the short term power market , 2005, 2005 IEEE Russia Power Tech.

[4]  H. M. I. Pousinho,et al.  An Artificial Neural Network Approach for Short-Term Wind Power Forecasting in Portugal , 2009, 2009 15th International Conference on Intelligent System Applications to Power Systems.

[5]  Andres Ramos,et al.  The impact of European balancing rules on wind power economics and on short-term bidding strategies , 2014 .

[6]  G. Sheblé,et al.  Comparing Hedging Methods for Wind Power: Using Pumped Storage Hydro Units vs. Options Purchasing , 2006, 2006 International Conference on Probabilistic Methods Applied to Power Systems.

[7]  Somboon Nuchprayoon,et al.  Feed-in tariff scheme for promoting wind energy generation , 2009, 2009 IEEE Bucharest PowerTech.

[8]  M. El-Sharkawi,et al.  Coordinated Trading of Wind and Thermal Energy , 2011, IEEE Transactions on Sustainable Energy.

[9]  Wei-Jen Lee,et al.  Forecasting the Wind Generation Using a Two-Stage Network Based on Meteorological Information , 2009, IEEE Transactions on Energy Conversion.

[10]  V. Mendes,et al.  Short-term electricity prices forecasting in a competitive market: A neural network approach , 2007 .

[11]  Christodoulos A. Floudas,et al.  Mixed Integer Linear Programming in Process Scheduling: Modeling, Algorithms, and Applications , 2005, Ann. Oper. Res..

[12]  H. M. I. Pousinho,et al.  Offering Strategies for a Wind Power Producer considering Uncertainty through a Stochastic Model , 2012 .

[13]  Julio Usaola,et al.  Combined hydro-wind generation bids in a pool-based electricity market , 2009 .

[14]  Leandro dos Santos Coelho,et al.  A RBF neural network model with GARCH errors: Application to electricity price forecasting , 2011 .

[15]  P. Sauer,et al.  Wind power day-ahead uncertainty management through stochastic unit commitment policies , 2009, 2009 IEEE/PES Power Systems Conference and Exposition.

[16]  G. Strbac,et al.  Value of combining energy storage and wind in short-term energy and balancing markets , 2003 .

[17]  P. Pinson,et al.  Trading Wind Generation From Short-Term Probabilistic Forecasts of Wind Power , 2007, IEEE Transactions on Power Systems.

[18]  Ehab F. El-Saadany,et al.  Impact of wind generation control strategies, penetration level and installation location on electricity market prices , 2008 .

[19]  A.M. Gonzalez,et al.  Stochastic Joint Optimization of Wind Generation and Pumped-Storage Units in an Electricity Market , 2008, IEEE Transactions on Power Systems.

[20]  Andrew Kusiak,et al.  Wind farm power prediction: a data‐mining approach , 2009 .

[21]  Helder Leite,et al.  Feed-in tariffs for wind energy in Portugal: Current status and prospective future , 2011, 11th International Conference on Electrical Power Quality and Utilisation.

[22]  Kameshwar Poolla,et al.  Selling wind power in electricity markets: The status today, the opportunities tomorrow , 2012, 2012 American Control Conference (ACC).