Profit Sharing for Concentrating Solar Power and Wind Power Aggregation Based on Hourly Nash Bargaining Solutuion

• Published in: 2020 IEEE Power & Energy Society General Meeting (PESGM) pp. 1 - 5
• Main Authors: Wu, Zhaoyuan, Zhou, Ming, Wang, Jianxiao, Li, Gengyin, Gu, Haifei, Zhang, Yan
• Format: Conference Proceeding
• Language: English
• Published: IEEE 02.08.2020
• Subjects: Bargaining power; concentrating solar power; joint offering; Nash bargaining; profit sharing mechanism
• ISSN: 1944-9933
• DOI: 10.1109/PESGM41954.2020.9282055

Recent advancement of thermal storage technology has motivated concentrating solar power (CSP) to play a vital role in high renewable energy penetrated power systems. Due to its dispatchable ability, the aggregation of CSP and other renewable energy, such as wind power, can significantly improve overall profits in a deregulated electricity market. Cooperative offering of CSP and wind power, however, is confronted with one major challenge: how to accurately identify the contribution in joint offering and make a fair and reasonable profit sharing. In this paper, a joint offering scheme of CSP and wind power is proposed, and an incentive profit sharing mechanism is presented for fair profit allocation among CSP and wind power. The proposed joint offering scheme is formulated as a two-stage stochastic optimization model to maximize the total profits considering both day-ahead and dual-pricing balancing markets. A Nash bargaining (NB)-based mechanism is presented to allocate market profits based on each participant's bargaining power. In the NB model, the hourly-based bargaining power is quantified to reveal the contributions of different participants in joint offering. Simulation results of case studies demonstrate the effectiveness of the proposed scheme and mechanism.