IDEAS home Printed from https://ideas.repec.org/a/sae/engenv/v28y2017i8p846-869.html
   My bibliography  Save this article

Coordinated bidding of wind and thermal energy in joint energy and reserve markets of Spain by considering the uncertainties

Author

Listed:
  • Kiumars Rahmani
  • Mehrdad S Nazar

Abstract

There are several reasons why participants, namely conventional participants, and moreover, wind power producers, have been facing an inevitable uncertainty problem in the current short-term electricity market; one reason is the stochastic nature of market prices, and the other is the wind output power uncertainty. To relive the undesirable effects of these uncertainties on wind energy trading, this research proposes a coordinated bidding of wind and thermal units in day-ahead market, adjustment market and regulation reserve market based on the Iberian Peninsula short-term electricity market rules. In the proposed method, a blended integer stochastic linear programming design maximises the expected profits while controlling the risks. One of the main properties of the developed method is modelling the uncertainty of market expenses and wind output energy. Another feature is considering the conditional value at risk criterion to handle the trading risks. The case study is divided into four specific cases in which different kinds of participation are evaluated. These differences attribute to the bidding in various market types. Simulation results indicate that coordinated bidding in the regulation reserve market has more advantages over coordinated bidding in the adjustment market. Furthermore, participation in both adjustment market and regulation reserve market leads to a dramatic decrease in likely deviations in the regulation reserve market, and as a result, coordination advantages become less effective.

Suggested Citation

  • Kiumars Rahmani & Mehrdad S Nazar, 2017. "Coordinated bidding of wind and thermal energy in joint energy and reserve markets of Spain by considering the uncertainties," Energy & Environment, , vol. 28(8), pages 846-869, December.
    • Handle: RePEc:sae:engenv:v:28:y:2017:i:8:p:846-869
    DOI: 10.1177/0958305X17736001
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0958305X17736001
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0958305X17736001?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Klessmann, Corinna & Nabe, Christian & Burges, Karsten, 2008. "Pros and cons of exposing renewables to electricity market risks--A comparison of the market integration approaches in Germany, Spain, and the UK," Energy Policy, Elsevier, vol. 36(10), pages 3646-3661, October.
    2. Díaz-González, Francisco & Hau, Melanie & Sumper, Andreas & Gomis-Bellmunt, Oriol, 2014. "Participation of wind power plants in system frequency control: Review of grid code requirements and control methods," Renewable and Sustainable Energy Reviews, Elsevier, vol. 34(C), pages 551-564.
    3. Zhang, Zhao-Sui & Sun, Yuan-Zhang & Cheng, Lin, 2013. "Potential of trading wind power as regulation services in the California short-term electricity market," Energy Policy, Elsevier, vol. 59(C), pages 885-897.
    4. Antonio J. Conejo & Miguel Carrión & Juan M. Morales, 2010. "Decision Making Under Uncertainty in Electricity Markets," International Series in Operations Research and Management Science, Springer, number 978-1-4419-7421-1, December.
    5. Rahimiyan, Morteza & Morales, Juan M. & Conejo, Antonio J., 2011. "Evaluating alternative offering strategies for wind producers in a pool," Applied Energy, Elsevier, vol. 88(12), pages 4918-4926.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Pandžić, Hrvoje & Kuzle, Igor & Capuder, Tomislav, 2013. "Virtual power plant mid-term dispatch optimization," Applied Energy, Elsevier, vol. 101(C), pages 134-141.
    2. Hosseini, Seyyed Ahmad & Toubeau, Jean-François & De Grève, Zacharie & Vallée, François, 2020. "An advanced day-ahead bidding strategy for wind power producers considering confidence level on the real-time reserve provision," Applied Energy, Elsevier, vol. 280(C).
    3. Siavash Asiaban & Nezmin Kayedpour & Arash E. Samani & Dimitar Bozalakov & Jeroen D. M. De Kooning & Guillaume Crevecoeur & Lieven Vandevelde, 2021. "Wind and Solar Intermittency and the Associated Integration Challenges: A Comprehensive Review Including the Status in the Belgian Power System," Energies, MDPI, vol. 14(9), pages 1-41, May.
    4. Moradi-Dalvand, M. & Mohammadi-Ivatloo, B. & Amjady, N. & Zareipour, H. & Mazhab-Jafari, A., 2015. "Self-scheduling of a wind producer based on Information Gap Decision Theory," Energy, Elsevier, vol. 81(C), pages 588-600.
    5. Chinmoy, Lakshmi & Iniyan, S. & Goic, Ranko, 2019. "Modeling wind power investments, policies and social benefits for deregulated electricity market – A review," Applied Energy, Elsevier, vol. 242(C), pages 364-377.
    6. Yasemin Merzifonluoglu & Eray Uzgoren, 2018. "Photovoltaic power plant design considering multiple uncertainties and risk," Annals of Operations Research, Springer, vol. 262(1), pages 153-184, March.
    7. Vithayasrichareon, Peerapat & MacGill, Iain F., 2013. "Assessing the value of wind generation in future carbon constrained electricity industries," Energy Policy, Elsevier, vol. 53(C), pages 400-412.
    8. Wang, Dongxiao & Qiu, Jing & Reedman, Luke & Meng, Ke & Lai, Loi Lei, 2018. "Two-stage energy management for networked microgrids with high renewable penetration," Applied Energy, Elsevier, vol. 226(C), pages 39-48.
    9. Sadeghian, Omid & Mohammadpour Shotorbani, Amin & Mohammadi-Ivatloo, Behnam & Sadiq, Rehan & Hewage, Kasun, 2021. "Risk-averse maintenance scheduling of generation units in combined heat and power systems with demand response," Reliability Engineering and System Safety, Elsevier, vol. 216(C).
    10. Shahmohammadi, Ali & Sioshansi, Ramteen & Conejo, Antonio J. & Afsharnia, Saeed, 2018. "Market equilibria and interactions between strategic generation, wind, and storage," Applied Energy, Elsevier, vol. 220(C), pages 876-892.
    11. Christos N. Dimitriadis & Evangelos G. Tsimopoulos & Michael C. Georgiadis, 2021. "A Review on the Complementarity Modelling in Competitive Electricity Markets," Energies, MDPI, vol. 14(21), pages 1-27, November.
    12. Paul Koutstaal & Michiel Bijlsma & Gijsbert Zwart & X. van Tilburg, 2009. "Market performance and distributional effects on renewable energy markets," CPB Document 190.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    13. Ana Fernández-Guillamón & Guillermo Martínez-Lucas & Ángel Molina-García & Jose-Ignacio Sarasua, 2020. "Hybrid Wind–PV Frequency Control Strategy under Variable Weather Conditions in Isolated Power Systems," Sustainability, MDPI, vol. 12(18), pages 1-25, September.
    14. Mohagheghi, Erfan & Gabash, Aouss & Alramlawi, Mansour & Li, Pu, 2018. "Real-time optimal power flow with reactive power dispatch of wind stations using a reconciliation algorithm," Renewable Energy, Elsevier, vol. 126(C), pages 509-523.
    15. Hiroux, C. & Saguan, M., 2010. "Large-scale wind power in European electricity markets: Time for revisiting support schemes and market designs?," Energy Policy, Elsevier, vol. 38(7), pages 3135-3145, July.
    16. Yıldıran, Uğur & Kayahan, İsmail, 2018. "Risk-averse stochastic model predictive control-based real-time operation method for a wind energy generation system supported by a pumped hydro storage unit," Applied Energy, Elsevier, vol. 226(C), pages 631-643.
    17. Grover-Silva, Etta & Heleno, Miguel & Mashayekh, Salman & Cardoso, Gonçalo & Girard, Robin & Kariniotakis, George, 2018. "A stochastic optimal power flow for scheduling flexible resources in microgrids operation," Applied Energy, Elsevier, vol. 229(C), pages 201-208.
    18. Goodarzi, Shadi & Perera, H. Niles & Bunn, Derek, 2019. "The impact of renewable energy forecast errors on imbalance volumes and electricity spot prices," Energy Policy, Elsevier, vol. 134(C).
    19. Jaber Valinejad & Mousa Marzband & Michael Elsdon & Ameena Saad Al-Sumaiti & Taghi Barforoushi, 2019. "Dynamic Carbon-Constrained EPEC Model for Strategic Generation Investment Incentives with the Aim of Reducing CO 2 Emissions," Energies, MDPI, vol. 12(24), pages 1-35, December.
    20. Hernán Gómez-Villarreal & Miguel Carrión & Ruth Domínguez, 2019. "Optimal Management of Combined-Cycle Gas Units with Gas Storage under Uncertainty," Energies, MDPI, vol. 13(1), pages 1-29, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:engenv:v:28:y:2017:i:8:p:846-869. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.