IDEAS home Printed from https://ideas.repec.org/a/eee/renene/v115y2018icp1067-1074.html
   My bibliography  Save this article

Strategic gaming of wind power producers joined with thermal units in electricity markets

Author

Listed:
  • Banaei, Mohsen
  • Oloomi-Buygi, Majid
  • Zabetian-Hosseini, Seyed-Mahdi

Abstract

Wind power producers are getting ready to participate in electricity markets as well as conventional units. This poses challenges to power system operators. Wind speed forecasting error increases power imbalance at real time operation, and hence, profits of wind power producers decrease due to balancing costs. A recently proposed scheme for reducing wind power plants power imbalance and increasing their profits is to team up each wind power producer with a non-wind generating firm. The joint firm participates in the market by bidding the joint supply function as a single unit. The objectives of this paper are 1) improving the efficiency of this scheme by considering both benefits and losses of positive and negative balancing prices, 2) determining the optimal generation capacity for the joined firm for maximum profitability of the scheme, and 3) performing sensitivity analysis on different parameters to determine the range of profitability of the scheme in different conditions. In order to evaluate the efficiency of the model, behavior of other generating firms should be known. To this end, supply function equilibrium model is used to determine the optimal behavior of generating firms considering their interactions. Performance of the improved scheme is discussed using a test system.

Suggested Citation

  • Banaei, Mohsen & Oloomi-Buygi, Majid & Zabetian-Hosseini, Seyed-Mahdi, 2018. "Strategic gaming of wind power producers joined with thermal units in electricity markets," Renewable Energy, Elsevier, vol. 115(C), pages 1067-1074.
  • Handle: RePEc:eee:renene:v:115:y:2018:i:c:p:1067-1074
    DOI: 10.1016/j.renene.2017.09.007
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0960148117308698
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.renene.2017.09.007?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Brancucci Martinez-Anido, Carlo & Brinkman, Greg & Hodge, Bri-Mathias, 2016. "The impact of wind power on electricity prices," Renewable Energy, Elsevier, vol. 94(C), pages 474-487.
    2. 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.
    3. Sun, Peng & Nie, Pu-yan, 2015. "A comparative study of feed-in tariff and renewable portfolio standard policy in renewable energy industry," Renewable Energy, Elsevier, vol. 74(C), pages 255-262.
    4. Dehghani, Hamed & Vahidi, Behrooz & Hosseinian, Seyed Hossein, 2017. "Wind farms participation in electricity markets considering uncertainties," Renewable Energy, Elsevier, vol. 101(C), pages 907-918.
    5. Laia, R. & Pousinho, H.M.I. & Melíco, R. & Mendes, V.M.F., 2016. "Bidding strategy of wind-thermal energy producers," Renewable Energy, Elsevier, vol. 99(C), pages 673-681.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Han, Zhixin & Fang, Debin & Yang, Peiwen & Lei, Leyao, 2023. "Cooperative mechanisms for multi-energy complementarity in the electricity spot market," Energy Economics, Elsevier, vol. 127(PB).
    2. Liu, Tingting & Xu, Jiuping, 2021. "Equilibrium strategy based policy shifts towards the integration of wind power in spot electricity markets: A perspective from China," Energy Policy, Elsevier, vol. 157(C).
    3. Mei, Shufan & Tan, Qinliang & Liu, Yuan & Trivedi, Anupam & Srinivasan, Dipti, 2023. "Optimal bidding strategy for virtual power plant participating in combined electricity and ancillary services market considering dynamic demand response price and integrated consumption satisfaction," Energy, Elsevier, vol. 284(C).
    4. Gomes, I.L.R. & Melicio, R. & Mendes, V.M.F. & Pousinho, H.M.I., 2019. "Decision making for sustainable aggregation of clean energy in day-ahead market: Uncertainty and risk," Renewable Energy, Elsevier, vol. 133(C), pages 692-702.

    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. Xiaolin Ayón & María Ángeles Moreno & Julio Usaola, 2017. "Aggregators’ Optimal Bidding Strategy in Sequential Day-Ahead and Intraday Electricity Spot Markets," Energies, MDPI, vol. 10(4), pages 1-20, April.
    2. Rezana Balla, 2020. "Digitalization of Financial Services in Albania Under Restricted Measures Covid-19," European Journal of Marketing and Economics Articles, Revistia Research and Publishing, vol. 3, July -Dec.
    3. Ahmed, Adil & Khalid, Muhammad, 2019. "A review on the selected applications of forecasting models in renewable power systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 100(C), pages 9-21.
    4. Sirin, Selahattin Murat & Yilmaz, Berna N., 2020. "Variable renewable energy technologies in the Turkish electricity market: Quantile regression analysis of the merit-order effect," Energy Policy, Elsevier, vol. 144(C).
    5. Libo Zhang & Qian Du & Dequn Zhou, 2021. "Grid Parity Analysis of China’s Centralized Photovoltaic Generation under Multiple Uncertainties," Energies, MDPI, vol. 14(7), pages 1-19, March.
    6. 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.
    7. Csereklyei, Zsuzsanna & Qu, Songze & Ancev, Tihomir, 2019. "The effect of wind and solar power generation on wholesale electricity prices in Australia," Energy Policy, Elsevier, vol. 131(C), pages 358-369.
    8. Jungmin An & Dong-Kwan Kim & Jinyeong Lee & Sung-Kwan Joo, 2021. "Least Squares Monte Carlo Simulation-Based Decision-Making Method for Photovoltaic Investment in Korea," Sustainability, MDPI, vol. 13(19), pages 1-14, September.
    9. Wang, Meng & Infante Ferreira, Carlos A., 2017. "Absorption heat pump cycles with NH3 – ionic liquid working pairs," Applied Energy, Elsevier, vol. 204(C), pages 819-830.
    10. Amiri-Pebdani, Sima & Alinaghian, Mahdi & Khosroshahi, Hossein, 2023. "Pricing in competitive energy supply chains considering government interventions to support CCS under cap-and-trade regulations: A game-theoretic approach," Energy Policy, Elsevier, vol. 179(C).
    11. Ángela García-Alaminos & Santiago J. Rubio, 2021. "Emission taxes and feed-in subsidies in the regulation of a polluting monopoly," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 12(2), pages 255-279, June.
    12. Rubin, Ofir D. & Babcock, Bruce A., 2013. "The impact of expansion of wind power capacity and pricing methods on the efficiency of deregulated electricity markets," Energy, Elsevier, vol. 59(C), pages 676-688.
    13. Youhyun Lee & Inseok Seo, 2019. "Sustainability of a Policy Instrument: Rethinking the Renewable Portfolio Standard in South Korea," Sustainability, MDPI, vol. 11(11), pages 1-19, May.
    14. Weimer-Jehle, Wolfgang & Buchgeister, Jens & Hauser, Wolfgang & Kosow, Hannah & Naegler, Tobias & Poganietz, Witold-Roger & Pregger, Thomas & Prehofer, Sigrid & von Recklinghausen, Andreas & Schippl, , 2016. "Context scenarios and their usage for the construction of socio-technical energy scenarios," Energy, Elsevier, vol. 111(C), pages 956-970.
    15. Yoon‐Hee Ha & John Byrne, 2019. "The rise and fall of green growth: Korea's energy sector experiment and its lessons for sustainable energy policy," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 8(4), July.
    16. Bedoić, Robert & Dorotić, Hrvoje & Schneider, Daniel Rolph & Čuček, Lidija & Ćosić, Boris & Pukšec, Tomislav & Duić, Neven, 2021. "Synergy between feedstock gate fee and power-to-gas: An energy and economic analysis of renewable methane production in a biogas plant," Renewable Energy, Elsevier, vol. 173(C), pages 12-23.
    17. Vijayanarasimha Hindupur Pakka & Richard Mark Rylatt, 2016. "Design and Analysis of Electrical Distribution Networks and Balancing Markets in the UK: A New Framework with Applications," Energies, MDPI, vol. 9(2), pages 1-20, February.
    18. Vika Koban, 2017. "The impact of market coupling on Hungarian and Romanian electricity markets: Evidence from the regime-switching model," Energy & Environment, , vol. 28(5-6), pages 621-638, September.
    19. Lin, Boqiang & Xie, Yongjing, 2024. "How feed-in-tariff subsidies affect renewable energy investments in China? New evidence from firm-level data," Energy, Elsevier, vol. 294(C).
    20. Wei, Youzhou & Zou, Qing-Ping & Lin, Xianghong, 2021. "Evolution of price policy for offshore wind energy in China: Trilemma of capacity, price and subsidy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 136(C).

    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:eee:renene:v:115:y:2018:i:c:p:1067-1074. 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: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/renewable-energy .

    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.