TY - JOUR
T1 - Impacts of Intraday Risky Power Trades on the High Wind Penetrated Electricity Markets
AU - Basji, Mazaher Haji
AU - Yousefi, Gholam Reza
AU - Latify, Mohammad Amin
AU - Bak, Claus Leth
PY - 2019/9/3
Y1 - 2019/9/3
N2 - In this study, a three-settlement electricity market including the day-ahead, risky, and real-time trades is analysed. A wind power producer faces generation uncertainty and needs to cover its real-time generation deviation unless it would be penalised. To do so, wind power producers participate in an intraday risky power market, as well as in the day-ahead and realtime markets. Mathematical program with equilibrium constraints (MPEC) is used to model the behaviour of each generation company in its profit maximisation process. The complementarity constraints describe the market clearings and constitute a bilevel optimisation problem for each company. The companies have a combination of wind and thermal power plants in their generation portfolios. Wind power uncertainty is modelled using plausible scenarios. The joint solution of all companies’ MPECs makes an equilibrium problem with equilibrium constraints (EPEC). This EPEC is linearised and solved using mixed integer linear programming techniques. EPEC solution gives the Nash equilibrium. Results show the effectiveness of the risky power trades on reducing the reserve requirements, increasing the wind power producers’ profit, and reducing the wind power spillage.
AB - In this study, a three-settlement electricity market including the day-ahead, risky, and real-time trades is analysed. A wind power producer faces generation uncertainty and needs to cover its real-time generation deviation unless it would be penalised. To do so, wind power producers participate in an intraday risky power market, as well as in the day-ahead and realtime markets. Mathematical program with equilibrium constraints (MPEC) is used to model the behaviour of each generation company in its profit maximisation process. The complementarity constraints describe the market clearings and constitute a bilevel optimisation problem for each company. The companies have a combination of wind and thermal power plants in their generation portfolios. Wind power uncertainty is modelled using plausible scenarios. The joint solution of all companies’ MPECs makes an equilibrium problem with equilibrium constraints (EPEC). This EPEC is linearised and solved using mixed integer linear programming techniques. EPEC solution gives the Nash equilibrium. Results show the effectiveness of the risky power trades on reducing the reserve requirements, increasing the wind power producers’ profit, and reducing the wind power spillage.
UR - http://www.scopus.com/inward/record.url?scp=85072303576&partnerID=8YFLogxK
U2 - 10.1049/iet-gtd.2018.6458
DO - 10.1049/iet-gtd.2018.6458
M3 - Journal article
SN - 1751-8687
VL - 13
SP - 3836
EP - 3846
JO - IET Generation, Transmission & Distribution
JF - IET Generation, Transmission & Distribution
IS - 17
ER -