Stochastic EPEC approach for wind power trading in competitive electricity market

Kailash Chand Sharma, Rohit Bhakar, H. P. Tiwari

Research output: Contribution to conferencePaper

2 Citations (Scopus)
250 Downloads (Pure)

Abstract

As a consequence of maturing technologies and regulatory interventions, wind power producers (WPPs) are likely to participate strategically in competitive electricity markets. In wind dominated oligopolistic electricity markets, strategic WPPs would optimize their offering bids considering rival behavior. In this perspective, stochastic equilibrium problem with equilibrium constraints (EPEC) model is proposed, to develop optimal offering strategy for WPPs that participate as price-makers in day-ahead electricity market and as price takers in balancing market. Strategic behavior of such WPPs is modeled using bi-level model that can be recast as stochastic mathematical problem with equilibrium constraints (MPEC). In the bi-level model, upper-level represents profit maximization problem of WPPs, while lower-level represents market clearing problem of independent system operator (ISO). Wind power and balancing market price uncertainties are modeled through scenarios. MPECs of all strategic WPPs are solved simultaneously using diagonalisation. Realistic case studies are simulated to show effectiveness of the proposed approach. Obtained results show that proposed approach can increase WPPs' profits significantly.

Original languageEnglish
DOIs
Publication statusPublished - 7 May 2015
Event2014 18th National Power Systems Conference, NPSC 2014 - Guwahati, India
Duration: 18 Dec 201420 Dec 2014

Conference

Conference2014 18th National Power Systems Conference, NPSC 2014
CountryIndia
CityGuwahati
Period18/12/1420/12/14

Keywords

  • Electricity Markets
  • Equilibrium problem with equilibrium constraints (EPEC)
  • Mathematical program with equilibrium constraints (MPEC)
  • Nash Equilibrium
  • Wind Power

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    Sharma, K. C., Bhakar, R., & Tiwari, H. P. (2015). Stochastic EPEC approach for wind power trading in competitive electricity market. Paper presented at 2014 18th National Power Systems Conference, NPSC 2014, Guwahati, India. https://doi.org/10.1109/NPSC.2014.7103830