Open AccessBidding strategy of hybrid power plant in day‐ahead market as price maker through robust optimization
Author(s) -
Darvishi Sajede,
Sheisi Gholamhossein,
Aghaei Jamshid
Publication year - 2020
Publication title -
international transactions on electrical energy systems
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.428
H-Index - 42
ISSN - 2050-7038
DOI - 10.1002/2050-7038.12426
Subject(s) - bidding , virtual power plant , profit (economics) , market price , renewable energy , economics , market power , microeconomics , wind power , power station , mathematical optimization , computer science , business , distributed generation , engineering , mathematics , monopoly , electrical engineering
Summary Renewable energy such as wind power plays an important role in power generation. Large amount of renewable energy can allow these producers to change the market price and be as a price maker in the market. Thus, we propose an optimal bidding strategy in the day‐ahead market for the hybrid power plant that participates as a price maker in the day‐ahead market and as a price taker in the balancing market. Hybrid power plant is composed of wind power producer, battery storage and demand response. The uncertainty of day‐ahead market price is modeled through Robust Optimization. In case studies, bidding strategy of hybrid power plant as a price maker and price taker configuration is presented. Then, joint operation of hybrid power plant is compared to disjoint operation and the effect of participating in market as coordinated unit on total profit is investigated. Moreover, the changes in profit according to risk level are determined and finally, offering curves are obtained by dividing the confidence bounds of day‐ahead market price to some subintervals. The simulation is done based on Nord Pool Market and the results validate hybrid power plant can behave as a price maker in the day‐ahead market and the profit of all units increases in joint operation.