IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v11y2018i5p1239-d146069.html
   My bibliography  Save this article

Strategic Offering for Wind Power Producers Considering Energy and Flexible Ramping Products

Author

Listed:
  • Xin Fang

    (National Renewable Energy Laboratory, Golden, CO 80401, USA)

  • Venkat Krishnan

    (National Renewable Energy Laboratory, Golden, CO 80401, USA)

  • Bri-Mathias Hodge

    (National Renewable Energy Laboratory, Golden, CO 80401, USA)

Abstract

The increasing deployments of renewable generation methods, such as wind, affects the flexibility of electric power system operating due to their inherent variability and uncertainty. To mitigate this, power systems need flexible resources. This paper investigates the potential for wind power to provide flexible ramping products in the real-time market, an additional value stream to the energy it provides. The proposed model for wind power’s strategic offering is formulated as a bi-level optimization problem with wind profit maximization at the upper level and the independent system operator’s economic dispatch—considering both the energy balance and the flexible ramping requirement to counter uncertainty—at the lower level. This bi-level model is converted to a mathematical program with equilibrium constraints (MPEC) by recasting the lower level problem with its Karush–Kuhn–Tucker optimality conditions. Then, through strong duality theory and the big-M method, the MPEC model is converted to a mixed-integer linear programming model. The opportunity cost and the price for wind power-providing ramping products are analyzed. Numerical examples based on a 5-bus network are presented to verify the proposed model and concept.

Suggested Citation

  • Xin Fang & Venkat Krishnan & Bri-Mathias Hodge, 2018. "Strategic Offering for Wind Power Producers Considering Energy and Flexible Ramping Products," Energies, MDPI, vol. 11(5), pages 1-19, May.
    • Handle: RePEc:gam:jeners:v:11:y:2018:i:5:p:1239-:d:146069
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/11/5/1239/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/11/5/1239/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. RUIZ, Carlos & CONEJO, Antonio J. & SMEERS, Yves, 2012. "Equilibria in an oligopolistic electricity pool with stepwise offer curves," LIDAM Reprints CORE 2395, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    2. Beibei Wang & Xin Fang & Xiayang Zhao & Houhe Chen, 2015. "Bi-Level Optimization for Available Transfer Capability Evaluation in Deregulated Electricity Market," Energies, MDPI, vol. 8(12), pages 1-17, November.
    3. Cui, Mingjian & Zhang, Jie & Feng, Cong & Florita, Anthony R. & Sun, Yuanzhang & Hodge, Bri-Mathias, 2017. "Characterizing and analyzing ramping events in wind power, solar power, load, and netload," Renewable Energy, Elsevier, vol. 111(C), pages 227-244.
    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. 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.
    2. Wook-Won Kim & Jong-Keun Park & Yong-Tae Yoon & Mun-Kyeom Kim, 2018. "Transmission Expansion Planning under Uncertainty for Investment Options with Various Lead-Times," Energies, MDPI, vol. 11(9), pages 1-19, September.
    3. Yuanyuan, Zhang & Huiru, Zhao & Bingkang, Li, 2023. "Distributionally robust comprehensive declaration strategy of virtual power plant participating in the power market considering flexible ramping product and uncertainties," Applied Energy, Elsevier, vol. 343(C).
    4. Ana Fernández-Guillamón & Guillermo Martínez-Lucas & Ángel Molina-García & Jose Ignacio Sarasua, 2020. "An Adaptive Control Scheme for Variable Speed Wind Turbines Providing Frequency Regulation in Isolated Power Systems with Thermal Generation," Energies, MDPI, vol. 13(13), pages 1-19, July.

    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. Kwag, Kyuhyeong & Shin, Hansol & Oh, Hyobin & Yun, Sangmin & Kim, Tae Hyun & Hwang, Pyeong-Ik & Kim, Wook, 2023. "Bilevel programming approach for the quantitative analysis of renewable portfolio standards considering the electricity market," Energy, Elsevier, vol. 263(PD).
    2. 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.
    3. Keller, Victor & Lyseng, Benjamin & English, Jeffrey & Niet, Taco & Palmer-Wilson, Kevin & Moazzen, Iman & Robertson, Bryson & Wild, Peter & Rowe, Andrew, 2018. "Coal-to-biomass retrofit in Alberta –value of forest residue bioenergy in the electricity system," Renewable Energy, Elsevier, vol. 125(C), pages 373-383.
    4. Sarfati, Mahir & Hesamzadeh, Mohammed Reza & Holmberg, Pär, 2019. "Production Efficiency of Nodal and Zonal Pricing in Imperfectly Competitive Electricity Markets," Working Paper Series 1264, Research Institute of Industrial Economics.
    5. Jin, Xiaoyu & Liu, Benxi & Liao, Shengli & Cheng, Chuntian & Zhang, Yi & Zhao, Zhipeng & Lu, Jia, 2022. "Wasserstein metric-based two-stage distributionally robust optimization model for optimal daily peak shaving dispatch of cascade hydroplants under renewable energy uncertainties," Energy, Elsevier, vol. 260(C).
    6. Sarfati, Mahir & Hesamzadeh, Mohammad Reza & Holmberg, Pär, 2018. "Increase-Decrease Game under Imperfect Competition in Two-stage Zonal Power Markets –​ Part II: Solution Algorithm," Working Paper Series 1254, Research Institute of Industrial Economics.
    7. Mestre, Guillermo & Sánchez-Úbeda, Eugenio F. & Muñoz San Roque, Antonio & Alonso, Estrella, 2022. "The arithmetic of stepwise offer curves," Energy, Elsevier, vol. 239(PE).
    8. Dávid Csercsik, 2016. "Competition and Cooperation in a Bidding Model of Electrical Energy Trade," Networks and Spatial Economics, Springer, vol. 16(4), pages 1043-1073, December.
    9. Paul Neetzow & Roman Mendelevitch & Sauleh Siddiqui, 2018. "Modeling Coordination between Renewables and Grid: Policies to Mitigate Distribution Grid Constraints Using Residential PV-Battery Systems," Discussion Papers of DIW Berlin 1766, DIW Berlin, German Institute for Economic Research.
    10. Stavros-Andreas Logothetis & Vasileios Salamalikis & Bijan Nouri & Jan Remund & Luis F. Zarzalejo & Yu Xie & Stefan Wilbert & Evangelos Ntavelis & Julien Nou & Niels Hendrikx & Lennard Visser & Manaji, 2022. "Solar Irradiance Ramp Forecasting Based on All-Sky Imagers," Energies, MDPI, vol. 15(17), pages 1-17, August.
    11. EunJi Ahn & Jin Hur, 2022. "A Practical Metric to Evaluate the Ramp Events of Wind Generating Resources to Enhance the Security of Smart Energy Systems," Energies, MDPI, vol. 15(7), pages 1-16, April.
    12. Neetzow, Paul & Mendelevitch, Roman & Siddiqui, Sauleh, 2019. "Modeling coordination between renewables and grid: Policies to mitigate distribution grid constraints using residential PV-battery systems," Energy Policy, Elsevier, vol. 132(C), pages 1017-1033.
    13. Lee, Joseph C.Y. & Draxl, Caroline & Berg, Larry K., 2022. "Evaluating wind speed and power forecasts for wind energy applications using an open-source and systematic validation framework," Renewable Energy, Elsevier, vol. 200(C), pages 457-475.
    14. Feng, Cong & Sun, Mucun & Cui, Mingjian & Chartan, Erol Kevin & Hodge, Bri-Mathias & Zhang, Jie, 2019. "Characterizing forecastability of wind sites in the United States," Renewable Energy, Elsevier, vol. 133(C), pages 1352-1365.
    15. Naegele, S.M. & McCandless, T.C. & Greybush, S.J. & Young, G.S. & Haupt, S.E. & Al-Rasheedi, M., 2020. "Climatology of wind variability for the Shagaya region in Kuwait," Renewable and Sustainable Energy Reviews, Elsevier, vol. 133(C).
    16. Cui, Mingjian & Zhang, Jie, 2018. "Estimating ramping requirements with solar-friendly flexible ramping product in multi-timescale power system operations," Applied Energy, Elsevier, vol. 225(C), pages 27-41.
    17. Ikram Ullah & Wolfgang Gawlik & Peter Palensky, 2016. "Analysis of Power Network for Line Reactance Variation to Improve Total Transmission Capacity," Energies, MDPI, vol. 9(11), pages 1-20, November.
    18. M. Sarfati & M.R. Hesamzadeh & P. Holmberg, 2018. "Increase-Decrease Game under Imperfect Competition in Two-stage Zonal Power Markets – Part II: Solution Algorithm," Working Papers EPRG 1838, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    19. Taheri, S. Saeid & Kazempour, Jalal & Seyedshenava, Seyedjalal, 2017. "Transmission expansion in an oligopoly considering generation investment equilibrium," Energy Economics, Elsevier, vol. 64(C), pages 55-62.
    20. Kasina, Saamrat & Hobbs, Benjamin F., 2020. "The value of cooperation in interregional transmission planning: A noncooperative equilibrium model approach," European Journal of Operational Research, Elsevier, vol. 285(2), pages 740-752.

    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:gam:jeners:v:11:y:2018:i:5:p:1239-:d:146069. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.