Open AccessOptimal wind energy bidding strategies in real‐time electricity market with multi‐energy sources
Author(s) -
Zhang Zijing,
Chen Zhi
Publication year - 2019
Publication title -
iet renewable power generation
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.005
H-Index - 76
eISSN - 1752-1424
pISSN - 1752-1416
DOI - 10.1049/iet-rpg.2019.0058
Subject(s) - bidding , electricity market , wind power , electricity , computer science , energy market , energy (signal processing) , environmental economics , business , microeconomics , economics , engineering , electrical engineering , mathematics , statistics
This study investigates optimal wind power generator bidding strategies in the real‐time electricity market. The goal is to maximise its operating profit by determining the optimal amount of wind power to bid in the real‐time market. A bi‐level stochastic optimisation model is proposed in which the upper‐level problem is minimising the negative profit of wind power producers, while the low‐level problem clears the real‐time market. The uncertainties in the wind power production, thermal power, hydro power, demand, and energy storage are considered in the stochastic model. This study utilises a mathematical programming problem with equilibrium constraints (MPEC) and Karush–Kuhn–Tucker (KKT) conditions to transform the bi‐level problem into an equivalent single‐level mixed‐integer linear problem (MILP). Case studies obtained with the IEEE RTS‐24 Bus system demonstrate the effectiveness of the proposed model and the effect of scenarios on the wind power producer's profit.