An intelligent wind power plant coalition formation model achieving balanced market penetration growth and profit increase

Hyesung Seok and Chen Chen

Renewable Energy, 2019, vol. 138, issue C, 1134-1142

Abstract: Forming coalitions of wind power plants (WPPs) has frequently been studied as a solution for effective renewable energy management [14–22]. Due to the volatility of renewable energy generation, WPPs tend to conservatively bids in a day-ahead market to avoid huge penalties for failure to deliver the appointed amount of energy. Hence, such a coalition among WPPs lessens the risk of delivery failure and motivates WPPs to generate more energy. However, as the size of the coalition increases, the total supply bid grows and therefore the wholesale unit price is decreasing [15]. Hence, WPPs tend to strategically lower their bid to keep market prices from decreasing too much to avoid less profit. It harms the market penetration growth of renewable energy. In our study, we propose an intelligent coalition formation model to deal with the trade-off between the profits of individual WPPs increase and a market penetration growth. Our model is especially applicable to heterogeneous WPPs. We validate that our model achieves more profit of WPPs and higher market penetration than other models under specific conditions. The fairness regarding WPP profits are also improving as the heterogeneity of WPPs is larger, and the number of WPPs is increasing.

Keywords: Coalition; Distributed decision making; Electricity market; Renewable energy (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:renene:v:138:y:2019:i:c:p:1134-1142

DOI: 10.1016/j.renene.2019.02.064

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