Optimal operation value of combined wind power and energy storage in multi-stage electricity markets

Guzmán Díaz, José Coto and Javier Gómez-Aleixandre

Applied Energy, 2019, vol. 235, issue C, 1153-1168

Abstract: This paper provides a methodology to compute the optimal bidding by a wind power producer in a multi-stage market. The methodology is not restricted to the two-stage markets often reported in the literature—a day-ahead bid submission followed by an adjustment in the imbalance market. Instead, it allows studying any number of markets operating on the same dispatch hour. Particularly, this paper analyzes part of the Spanish market, covering the day-ahead, the six intraday, and the imbalance market. They are markets with different schedules, but this paper shows that by simply rearranging the market prices into a single equivalent market and employing the increments of power as bids, the calculations are visibly simplified; despite the different scope and gate closures. The methodology also includes a dynamic programming approach that relies on the equivalent market data to provide an optimal bidding sequence and its economic value when (i) uncertain prices and wind power production are considered, and (ii) energy storage is employed. As an application, the proposed methodology is employed to analyze the revenues derived by a wind power producer using ESS in the Spanish market.

Keywords: Wind power; Energy storage; Intraday markets; Imbalance; Optimality; Uncertainty (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (6)

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DOI: 10.1016/j.apenergy.2018.11.035

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