Strategic wind power trading considering rival wind power production

Lazaros Exizidis, Jalal Kazempour, Pierre Pinson, Zacharie de Greve, Francois Vallée

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Abstract

In an electricity market with high share of wind power, it is expected that wind power producers may exercise market power. However, wind producers have to cope with wind’s uncertain nature in order to optimally offer their generation,
whereas in a market with more than one wind producers, uncertainty of rival wind power generation should also be considered. Under this context, this paper addresses the impact of rival wind producers on the offering strategy and profits of a pricemaker wind producer. A stochastic day-ahead market setup is considered, which optimizes the day-ahead schedules considering a number of foreseen real-time scenarios. The results indicate that strategic wind producer is more likely to exercise market power having a mid-mean or low-mean forecast distribution, rather than having a high-mean one. Furthermore, it is observed that its offering strategy varies considerably depending on the rival’s wind generation, given that its own expected generation is not high. Finally, as anticipated, expected system cost is higher when both wind power producers are expected to have low wind power generation
Original languageEnglish
Title of host publicationProceedings of 2016 IEEE PES Innovative Smart Grid Technologies – Asia
Number of pages6
PublisherIEEE
Publication date2016
DOIs
Publication statusPublished - 2016
Event2016 IEEE PES Innovative Smart Grid Technologies Asia - Melbourne, Australia
Duration: 28 Nov 20161 Dec 2016

Conference

Conference2016 IEEE PES Innovative Smart Grid Technologies Asia
Country/TerritoryAustralia
CityMelbourne
Period28/11/201601/12/2016

Keywords

  • Wind power
  • Strategic offering
  • Trading
  • Twostage market
  • Day-ahead
  • MPEC

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