Optimal contracts for wind power producers in electricity markets

E. Bitar, A. Giani, R. Rajagopal, D. Varagnolo, P. Khargonekar, K. Poolla, P. Varaiya

Research output: Chapter in Book/Report/Conference proceedingConference contribution

21 Scopus citations


This paper is focused on optimal contracts for an independent wind power producer in conventional electricity markets. Starting with a simple model of the uncertainty in the production of power from a wind turbine farm and a model for the electric energy market, we derive analytical expressions for optimal contract size and corresponding expected optimal profit. We also address problems involving overproduction penalties, cost of reserves, and utility of additional sensor information. We obtain analytical expressions for marginal profits from investing in local generation and energy storage. ©2010 IEEE.
Original languageEnglish (US)
Title of host publication49th IEEE Conference on Decision and Control (CDC)
PublisherInstitute of Electrical and Electronics Engineers (IEEE)
Number of pages8
ISBN (Print)9781424477456
StatePublished - Dec 2010
Externally publishedYes

Bibliographical note

KAUST Repository Item: Exported on 2020-10-01
Acknowledged KAUST grant number(s): 025478
Acknowledgements: Supported in part by OOF991-KAUST US LIMITED under awardnumber 025478, the UC Discovery Grant ele07-10283 under the IMPACTprogram, and NSF under Grant EECS-0925337, and the Florida EnergySystems Consortium.
This publication acknowledges KAUST support, but has no KAUST affiliated authors.


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