Pricing Electricity in Pools With Wind Producers

Juan Miguel Morales González, A. J. Conejo, Kai Liu, Jin Zhong

    Research output: Contribution to journalJournal articleResearchpeer-review

    Abstract

    This paper considers an electricity pool that includes a significant number of wind producers and is cleared through a network-constrained auction, one day in advance and on an hourly basis. The hourly auction is formulated as a two-stage stochastic programming problem, where the first stage represents the clearing of the market and the second stage models the system operation under a number of plausible wind production realizations. This formulation co-optimizes energy and reserve, and allows deriving both pool energy prices and balancing energy prices. These prices result in both cost recovery for producers and revenue reconciliation. A case study of realistic size is used to illustrate the functioning of the proposed pricing scheme.
    Original languageEnglish
    JournalI E E E Transactions on Power Systems
    Volume27
    Issue number3
    Pages (from-to)1366-1376
    ISSN0885-8950
    DOIs
    Publication statusPublished - 2012

    Keywords

    • power generation economics
    • pricing
    • stochastic programming
    • wind power plants

    Fingerprint

    Dive into the research topics of 'Pricing Electricity in Pools With Wind Producers'. Together they form a unique fingerprint.

    Cite this