Optimal Offering Strategies for Wind Power in Energy and Primary Reserve Markets

Abstract

Abstract-Wind power generation is to play an important role in supplying electric power demand, and will certainly impact the design of future energy and reserve markets. Operators of wind power plants will consequently develop adequate offering strategies, accounting for the market rules and the operational capabilities of the turbines, e.g., to participate in primary reserve markets. We consider two different offering strategies for joint participation of wind power in energy and primary reserve markets, based on the idea of proportional and constant splitting of potentially available power generation from the turbines. These offering strategies aim at maximizing expected revenues from both market floors using probabilistic forecasts for wind power generation, complemented with estimated regulation costs and penalties for failing to provide primary reserve. A set of numerical examples, as well as a case-study based on real-world data, allows illustrating and discussing the properties of these offering strategies. An important conclusion is that, even though technically possible, it may not always make sense for wind power to aim at providing system services in a market environment.Index Terms-Ancillary services, decision-making under uncertainty, electricity markets, offering strategies, wind power. NOMENCLATUREThe main notation used throughout the paper is stated next for quick reference. Other symbols are defined as required. A. Variables

Short-term forecast of automatic frequency restoration reserve from a renewable energy based virtual power plant

“…Predictive densities produced by the model are optimized with respect to the expectancy E, so the mean of the predictive density for each horizon constitutes the deterministic forecast. The forecast flexibility for the dayahead horizon is chosen in (9) as the minimum of the deterministic aggregated forecast on the day to predict.…”

“…Bidding strategies for participation of wind farms in an AS market have been studied recently. The reserve strategies proposed in [9] keep a share of the active power forecast to the FCR market. The optimal bid of wind power is analytically derived as a quantile of the production forecast for the day ahead, considering high penalties in the balancing market if failing to provide the FCR service.…”

Energy and Reserve under Distributed Energy Resources Management—Day-Ahead, Hour-Ahead and Real-Time

“…The literature on the management of DERs considering day-ahead, hour-ahead and real-time scheduling processes has been growing over the last few years [5]. This includes a number of studies on day-ahead scheduling for DERs with impact on operation costs [10][11][12][13], optimal bidding [13], load shedding [10], carbon emissions [10,14], EVs with vehicle-to-grid ability [15,16], losses reduction [17] and service restoration [18], as well as ancillary services management [19,20], among others. An integrated day-ahead and hour-ahead (intraday) schedule for dealing with DERs uncertainty [21], maximizing the retailer's profit under carbon emissions penalties [22], DERs scheduling with recourse to stochastic programming [23] and control strategies [24] has been studied.…”

Optimal offering and allocation policies for wind power in energy and reserve markets

“…In this new context, with WPPs offering in both energy and reserve markets, it is crucial to develop methods for the optimal offering of wind power in both markets. In this way, some studies have emerged on joint offering of energy and reserve under uncertain production . A multi‐stage stochastic approach for evaluating under risk analysis the joint participation of wind in both the energy and reserve markets is proposed in the literature .…”