Hedging the Risk of Wind Power Production Using Dispatchable Energy Source

D’Amico Guglielmo (), Di Basilio Bice () and Petroni Filippo ()
Additional contact information
D’Amico Guglielmo: Department of Economics, University “G. D’Annunzio” of Chieti-Pescara, 65127Pescara, Italy
Di Basilio Bice: Department of Economics, University “G. D’Annunzio” of Chieti-Pescara, 65127Pescara, Italy
Petroni Filippo: Department of Management, Marche Polytechnic University, 60121Ancona, Italy

Stochastics and Quality Control, 2021, vol. 36, issue 1, 1-20

Abstract: In this paper we advance a nonlinear optimization problem for hedging wind power variability by using a dispatchable energy source (DES) like gas. The model considers several important aspects such as modeling of wind power production, electricity price, nonlinear penalization scheme for energy underproduction and interrelations among the considered variables. Results are given in terms of optimal co-generation policy with DES. The optimal policy is interpreted and analyzed in different penalization scenarios and related to a 48 MW hypothetical wind park. The model is suitable for integration of wind energy especially for isolated grids. Some probabilistic results for special moments of a Log-Normal distribution are obtained; they are necessary for the evolution of the optimal policy.

Keywords: Optimization; Copula Function; Weibull Distribution; Electricity Price; Wind Energy (search for similar items in EconPapers)
Date: 2021
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1515/eqc-2020-0033 (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

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:bpj:ecqcon:v:36:y:2021:i:1:p:1-20:n:3

Ordering information: This journal article can be ordered from
https://www.degruyter.com/journal/key/eqc/html

DOI: 10.1515/eqc-2020-0033

Access Statistics for this article

Stochastics and Quality Control is currently edited by George P. Yanev

More articles in Stochastics and Quality Control from De Gruyter
Bibliographic data for series maintained by Peter Golla ().