Strategic Offering for Wind Power Producers Considering Energy and Flexible Ramping Products

Xin Fang, Venkat Krishnan and Bri-Mathias Hodge
Additional contact information
Xin Fang: National Renewable Energy Laboratory, Golden, CO 80401, USA
Venkat Krishnan: National Renewable Energy Laboratory, Golden, CO 80401, USA
Bri-Mathias Hodge: National Renewable Energy Laboratory, Golden, CO 80401, USA

Energies, 2018, vol. 11, issue 5, 1-19

Abstract: The increasing deployments of renewable generation methods, such as wind, affects the flexibility of electric power system operating due to their inherent variability and uncertainty. To mitigate this, power systems need flexible resources. This paper investigates the potential for wind power to provide flexible ramping products in the real-time market, an additional value stream to the energy it provides. The proposed model for wind power’s strategic offering is formulated as a bi-level optimization problem with wind profit maximization at the upper level and the independent system operator’s economic dispatch—considering both the energy balance and the flexible ramping requirement to counter uncertainty—at the lower level. This bi-level model is converted to a mathematical program with equilibrium constraints (MPEC) by recasting the lower level problem with its Karush–Kuhn–Tucker optimality conditions. Then, through strong duality theory and the big-M method, the MPEC model is converted to a mixed-integer linear programming model. The opportunity cost and the price for wind power-providing ramping products are analyzed. Numerical examples based on a 5-bus network are presented to verify the proposed model and concept.

Keywords: wind power; flexible ramping; strategic offers; electricity market; mathematical program with equilibrium constraints (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://www.mdpi.com/1996-1073/11/5/1239/pdf (application/pdf)
https://www.mdpi.com/1996-1073/11/5/1239/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jeners:v:11:y:2018:i:5:p:1239-:d:146069

Access Statistics for this article

Energies is currently edited by Ms. Agatha Cao

More articles in Energies from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().