Optimal Bidding Strategy for a Wind Power Producer in the Energy and Spinning Reserve Markets

Wind power is one of the world's fastest-growing renewable energy resources. To achieve high levels of wind power penetration in the power supply, it will be necessary for wind power producers (WPPs) to contribute to system-wide reserves. This paper proposes a stochastic optimization model to d...

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Bibliographic Details
Published in2021 North American Power Symposium (NAPS) pp. 01 - 06
Main Authors Stratman, Anne, Qiao, Wei, Qu, Liyan
Format Conference Proceeding
LanguageEnglish
Published IEEE 14.11.2021
Subjects
bidding strategy
day-ahead market
Probability distribution
Production
Real-time systems
Renewable energy sources
reserve market
Stochastic processes
stochastic programming
Uncertainty
Wind power generation
wind power producer (WPP)
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Summary:Wind power is one of the world's fastest-growing renewable energy resources. To achieve high levels of wind power penetration in the power supply, it will be necessary for wind power producers (WPPs) to contribute to system-wide reserves. This paper proposes a stochastic optimization model to determine the optimal offer strategy for a WPP that participates in the day-ahead and real-time energy and spinning reserve markets. The objective function maximizes the WPP's total expected profit while minimizing risk by allowing the WPP to split day-ahead offers between the energy and spinning reserve markets, which have lower penalties than the energy market for failing to deliver the cleared day-ahead offer. The model is solved using the simplex method, and hourly offer curves are generated for several levels of risk-aversion. Case study results show that the proposed offer strategy increases expected profit and significantly decreases risk compared to the case where the WPP only participates in the energy market.
DOI:10.1109/NAPS52732.2021.9654493