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Wind power bidding strategy in the short-term electricity market

Shaomao Li and Chan S. Park

Energy Economics, 2018, vol. 75, issue C, 336-344

Abstract: This paper presents an analytical trading electricity model for wind power producers (WPPs) in the short-term electricity market in the U.S. This model addresses four specific uncertainties: real-time (RT) wind power generation, day-ahead (DA) locational marginal prices (LMPs), RT LMPs, and deviation penalty rates. The model is designed to find the optimal bidding strategy to maximize the expected revenue under these uncertainties. In addition, this paper shows that advanced forecasting techniques could be used with the proposed bidding strategy to help WPPs trade energy in short-term markets. A case study is presented to illustrate the effectiveness of this proposed bidding strategy and advanced forecasting techniques using a set of real data taken from a wind farm in the PJM electricity market.

Keywords: Wind power; Bidding strategy; Forecasting model; Short-term market; Analytical method (search for similar items in EconPapers)
JEL-codes: Q40 Q42 Q47 Q20 C61 C63 (search for similar items in EconPapers)
Date: 2018
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