Open AccessImpact of wind integration on electricity markets: a chance‐constrained Nash Cournot model
Author(s) -
Mazadi M.,
Rosehart W. D.,
Zareipour H.,
Malik O. P.,
Oloomi M.
Publication year - 2013
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/etep.650
Subject(s) - cournot competition , mathematical optimization , wind power , electricity market , profit (economics) , electricity , computer science , nash equilibrium , economics , microeconomics , mathematics , engineering , electrical engineering
SUMMARY Wind‐powered electricity generation is growing at a high rate around the world, mainly driven by the associated environmental benefits. However, because of the uncertain nature of wind energy, large‐scale integration of wind‐powered generators into power systems introduces uncertainty of supply in the operation and planning of electric energy systems. A chance‐constrained model is presented to study the strategic behavior of power suppliers (firms) with respect to the wind generation uncertainty in an electricity market. The linear complementarity problem of a Nash‐Cournot competition is extended to account for the wind generation uncertainty. An iterative solution approach is introduced to solve the resultant joint chance‐constrained programming problem. Five studies were conducted to show the impact of the amount, location and standard deviation of the wind generation and transmission line limits on the suppliers’ profit in the Nash‐Cournot game for different confidence levels. The value of stochastic solution index is used to evaluate the suppliers’ loss of profit. The numerical results for a three‐bus test system are given to verify the formulation and the solution approach. Copyright © 2011 John Wiley & Sons, Ltd.