  Uncertainty in the output power of large-scale wind power plants (WPPs) can
face the electricity market players with undesirable profit variations. Market
players can hedge themselves against these risks by participating in forward
contracts markets alongside the day-ahead markets. The participation of market
players in these two markets affects their profits and also the prices and
power quantities of each market. Moreover, limitations in the transmission grid
can affect the optimal behavior of market players. In this paper, a Cournot
Nash equilibrium model is proposed to study the behavior of market players in
the forward contract market and the day-ahead electricity market in a congested
power system with large-scale integration of WPPs. The proposed method is
applied to a test system, and the results are discussed.

Systems and Control;Systems and Control