Opportunity Cost Bidding by Wind Generators in Forward Markets: Analytical Results

Dent, Chris; Białek, Janusz; Hobbs, Benjamin F.

doi:10.1109/tpwrs.2010.2100412

Cited by 106 publications

(73 citation statements)

References 26 publications

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“…Initial studies adopted models where wind power producers are non-strategic players, i.e., price-takers, and/or receiving additional support when participating in a forward electricity market [16]- [19]. However, as the cost of wind power production is low and the competitiveness of wind power increases, wind power producers are forced to participate in the electricity markets under full competition and following the same rules as conventional producers [3].…”

Section: B Literature Review and Contributionsmentioning

confidence: 99%

Impact of Public Aggregate Wind Forecasts on Electricity Market Outcomes

Exizidis

Kazempour

Grève

et al. 2017

IEEE Trans. Sustain. Energy

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Abstract-Following a call to foster a transparent and more competitive market, member states of the European transmission system operator are required to publish, among other information, aggregate wind power forecasts. The publication of the latter information is expected to benefit market participants by offering better knowledge of the market operation, leading subsequently to a more competitive energy market. Driven by the above regulation, we consider an equilibrium study to address how public information of aggregate wind power forecasts can potentially affect market results, social welfare as well as the profits of participating power producers. We investigate, therefore, a joint day-ahead energy and reserve auction, where producers offer their conventional power strategically based on a complementarity approach and their wind power at generation cost based on a forecast. In parallel, an iterative game-theoretic approach (diagonalization) is incorporated in order to investigate the existence of an equilibrium for various values of aggregate forecast. As anticipated, variations in public forecasts will affect market results and, more precisely, under-forecasts can mislead power producers to make decisions that favor social welfare, while over-forecasts will cause the opposite effect. Furthermore, energy and reserve market prices can also be affected by deviations in aggregate wind forecasts altering, inevitably, the profits of all power producers.

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Section: B Literature Review and Contributionsmentioning

confidence: 99%

Impact of Public Aggregate Wind Forecasts on Electricity Market Outcomes

Exizidis

Kazempour

Grève

et al. 2017

IEEE Trans. Sustain. Energy

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“…The data released by the National Energy Administration shows that the Chinese electricity of abandoned wind electricity in the first half of 2015 was 17 billion 500 million KWh [19,20]. According to the related literature, the transformation efficiency of wind to hydrogen currently does not exceed 40% [21][22][23][24][25]. If all of the abandoned wind electricity is used to produce hydrogen, it will get 1 billion 958 million m 3 of hydrogen, which can be converted to 5 billion 414 million m 3 natural gas on an equal heat basis.…”

Section: (B) Coal Consumptionmentioning

confidence: 99%

Day-Ahead Dispatch Model of Electro-Thermal Integrated Energy System with Power to Gas Function

Yang

Cai

2017

Applied Sciences

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Abstract:The application of power to gas (P2G) provides a new way to absorb intermittent renewable energy generation, which improves the efficiency of renewable energy utilization and provides the necessary flexibility for operating the integrated energy system. The electro-thermal integrated energy system with P2G is a new form of using energy efficiently. In this paper, we first introduce the technology and application of P2G. On the basis of considering the characteristics of P2G facilities, power systems, natural gas systems and heating systems, an optimal dispatching model of electro-thermal multi-energy system with P2G facilities is proposed. Particle swarm optimization is used to solve the optimal scheduling model. The simulation results are discussed for the six-bus and six-node integration system and show that when the volume fraction of hydrogen does not exceed 20% in the gas network, for the same operating mode, an integrated energy grid with P2G function will save about 20 tons of standard coal per day and the abandoned wind rate can be regarded as 0.

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“…The authors derive optimal offer curves (bid-quantity) using CVAR as a measure for risk preferences. Finally, Dent et al [107] derive analytical wind power bidding strategies under the assumption of a continuous probability function for wind power. The authors also consider situations where the RT price is a function of wind generation and use CVAR to represent risk-averse trading behavior.…”

Section: Literature Reviewmentioning

confidence: 99%