Conference paper
Price-Maker Wind Power Producer Participating in a Joint Day-Ahead and Real-Time Market
Department of Electrical Engineering, Technical University of Denmark1
Center for Electric Power and Energy, Centers, Technical University of Denmark2
Energy Analytics and Markets, Center for Electric Power and Energy, Centers, Technical University of Denmark3
CITIES - Centre for IT-Intelligent Energy Systems, Centers, Technical University of Denmark4
Department of Applied Mathematics and Computer Science, Technical University of Denmark5
The large scale integration of stochastic renewable energy introduces significant challenges for power system operators and disputes the efficiency of the current market design.Recent research embeds the uncertain nature of renewable sources by modelling electricity markets as a two-stage stochastic problem, co-optimizing day-ahead and real-time dispatch.
In this framework, we introduce a bilevel model to derive the optimal bid of a strategic wind power producer acting as price-maker both in day-ahead and real-time stages. The proposed model is a Mathematical Program with Equilibrium Constraints (MPEC) that is reformulated as a single-level Mixed-Integer LinearProgram (MILP), which can be readily solved.
Our analysis shows that adopting strategic behaviour may improve producer’s expected profit as the share of wind power increases. However,this incentive diminishes in power systems where available flexible capacity is high enough to ensure an efficient market operation.
| Language: | English |
|---|---|
| Publisher: | IEEE |
| Year: | 2015 |
| Pages: | 1-5 |
| Proceedings: | 12th International Conference on the European Energy Market |
| ISBN: | 1467366927 , 1467366935 , 9781467366922 and 9781467366939 |
| ISSN: | 21654093 and 21654077 |
| Types: | Conference paper |
| DOI: | 10.1109/EEM.2015.7216701 |
| ORCIDs: | Delikaraoglou, Stefanos , Papakonstantinou, Athanasios , Ordoudis, Christos and Pinson, Pierre |
Electricity markets Mathematical program with equilibrium constraints (MPEC) Price-maker SDG 7 - Affordable and Clean Energy Stochastic programming Wind power
Electricity supply industry MILP model MPEC model Power systems Production Real-time systems Stochastic processes Uncertainty Wind power generation day-ahead and real-time dispatch cooptimization integer programming joint day-ahead and real-time electricity market linear programming mathematical program with equilibrium constraint mathematical program with equilibrium constraints (MPEC) power generation dispatch power generation economics power markets power system operation price-maker single-level mixed integer linear program stochastic programming stochastic renewable energy two-stage stochastic problem wind power wind power production
