Strategic Offering for a Wind Power Producer
As a result of subsidies and technological maturity, renewable electricity producers have grown in some jurisdictions to clearly dominant positions in the market. Under this context, we propose an offering strategy for a wind power producer with market power that participates in the day ahead market as a price maker, and in the balancing market as a deviator. Uncertainty pertaining to wind power production and balancing market price is represented through a set of correlated scenarios. The proposed model is a stochastic mathematical program with equilibrium constraints (MPEC) that can be recast as a tractable mixed integer linear programming (MILP) problem, which is solvable using available optimization software. Results from an illustrative example and two case studies show the effectiveness of the proposed model.
IEEE Transactions on Power Systems