Optimal Offering and Operating Strategy for a Large Wind-Storage System as a Price Maker

Huajie Ding, Pierre Pinson, Zechun Hu, Jianhui Wang, Yonghua Song

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Wind farms and energy storage systems are playing increasingly more important roles in power systems, which makes their offering non-negligible in some markets. From the perspective of wind farm-energy storage systems (WF-ESS), this paper proposes an integrated strategy of day-ahead offering and real-time operation policies to maximize their overall profit. As participants with large capacity in electricity markets can influence cleared prices by strategic offering, a large scaled WFESS is assumed to be a price maker in day-ahead markets. Correspondingly, the strategy considers influence of offering quantity on cleared day-ahead prices, and adopts linear decision rules as the real time control strategy. These allow enhancing overall profits from both day-ahead and balancing markets. The integrated price-maker strategy is formulated as a stochastic programming problem, where uncertainty of wind power generation and balancing prices are taken into account in the form of scenario sets, permitting to reformulate the optimization problem as a linear program. Case studies validate the effectiveness of the proposed strategy by highlighting and quantifying benefits comparing with the price-taker strategy, and also show the profit enhancement brought to the distributed resources
Original languageEnglish
JournalIEEE Transactions on Power Systems
Issue number6
Pages (from-to)4904-4913
Number of pages10
Publication statusPublished - 2017

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  • Electricity markets
  • Energy storage system
  • Linear decision rules
  • Offering strategy
  • Price-maker strategy
  • Wind farm


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