Stochastic Optimal Regulation Service Strategy for a Wind Farm Participating in the Electricity Market

As modern wind farmshave the ability to provideregulation service for the power system, wind power plant operators may be motivated to participate in the regulating market to maximize their profit.In this paper, anoptimal regulation servicestrategy for a wind farm to participate in the regulatingmarket is proposed. The relationship between up regulation price and wind power level,and the relationship between the probability of up regulation and the wind power level are studied. Thestochastic optimizationis adopted to find the optimal ratiofor regulation service. The Monte Carlo method is used in the stochastic optimization to deal with the uncertainty of the up regulation price and the up regulation activation of the power system.The Danish short-term electricity market and a wind farm in western Denmark are chosen to evaluate the effect of the proposed strategy. Simulation results showthe proposed strategy can increase the revenue of wind farms by leavinga certain amount of wind powerfor regulation service.