Risk-Constrained Offering Strategy of Wind Power Producers Considering Intraday Demand Response Exchange

• Published in: IEEE transactions on sustainable energy Vol. 5; no. 4; pp. 1036 - 1047
• Main Authors: Heydarian-Forushani, Ehsan, Moghaddam, Mohsen Parsa, Sheikh-El-Eslami, Mohammad Kazem, Shafie-khah, Miadreza, Catalao, Joao P. S.
• Format: Journal Article
• Language: English
• Published: Piscataway IEEE 01.10.2014; The Institute of Electrical and Electronics Engineers, Inc. (IEEE)
• Subjects: Demand response exchange (DRX); electricity market; Electricity supply industry; Load management; Risk management; Stochastic processes; Uncertainty; Wind forecasting; Wind power generation; wind power producer (WPP); risk management; electricity market; Demand response exchange (DRX); wind power producer (WPP)
• ISSN: 1949-3029; 1949-3037
• DOI: 10.1109/TSTE.2014.2324035

This paper proposes a comprehensive stochastic decision making model for wind power producers' (WPPs) participation in a competitive market. The presented model incorporates three trading floors: 1) day-ahead; 2) intraday; and 3) balancing markets. An efficient integration of intraday markets allows market players to react to the latest information (e.g., more accurate wind forecast). Creating a platform that allows demand response resources (DRRs) to contribute to the intraday markets improves both WPP's business and power system flexibility. In this context, providing an intraday demand response exchange (IDRX) market for trading demand response (DR) between DR providers and DR users (e.g., WPPs) is proposed. The problem uncertainties, such as wind power and market prices, are considered using a scenario-based approach. Moreover, an appropriate risk measurement, conditional value-at-risk (CVaR), is incorporated with the model. Numerical results illustrate that utilizing DR to compensate wind generation imbalances can increase WPP's profit and reduce the related risks.