The role of co-located storage for wind power producers in conventional electricity markets

E. Bitar; R. Rajagopal; P. Khargonekar; K. Poolla

doi:10.1109/ACC.2011.5991431

The role of co-located storage for wind power producers in conventional electricity markets

E. Bitar, R. Rajagopal, P. Khargonekar, K. Poolla

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution

61 Scopus citations

Abstract

In this paper we study the problem of optimizing contract offerings for an independent wind power producer (WPP) participating in conventional day-ahead forward electricity markets for energy. As wind power is an inherently variable source of energy and is difficult to predict, we explore the extent to which co-located energy storage can be used to improve expected profit and mitigate the the financial risk associated with shorting on the offered contracts. Using a simple stochastic model for wind power production and a model for the electricity market, we show that the problem of determining optimal contract offerings for a WPP with co-located energy storage can be solved using convex programming.

Original language	English (US)
Title of host publication	Proceedings of the 2011 American Control Conference
Publisher	Institute of Electrical and Electronics Engineers (IEEE)
ISBN (Print)	9781457700811
DOIs	https://doi.org/10.1109/ACC.2011.5991431
State	Published - Jun 2011
Externally published	Yes

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, John and Janet McMurtry Fellowship, the UC DiscoveryGrant ele07-10283 under the IMPACT program, NSF under Grant EECS-0925337, and the Florida Energy Systems Consortium.
This publication acknowledges KAUST support, but has no KAUST affiliated authors.

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10.1109/ACC.2011.5991431

Cite this

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title = "The role of co-located storage for wind power producers in conventional electricity markets",

abstract = "In this paper we study the problem of optimizing contract offerings for an independent wind power producer (WPP) participating in conventional day-ahead forward electricity markets for energy. As wind power is an inherently variable source of energy and is difficult to predict, we explore the extent to which co-located energy storage can be used to improve expected profit and mitigate the the financial risk associated with shorting on the offered contracts. Using a simple stochastic model for wind power production and a model for the electricity market, we show that the problem of determining optimal contract offerings for a WPP with co-located energy storage can be solved using convex programming.",

author = "E. Bitar and R. Rajagopal and P. Khargonekar and K. Poolla",

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, John and Janet McMurtry Fellowship, the UC DiscoveryGrant ele07-10283 under the IMPACT program, NSF under Grant EECS-0925337, and the Florida Energy Systems Consortium. This publication acknowledges KAUST support, but has no KAUST affiliated authors.",

year = "2011",

month = jun,

doi = "10.1109/ACC.2011.5991431",

language = "English (US)",

isbn = "9781457700811",

booktitle = "Proceedings of the 2011 American Control Conference",

publisher = "Institute of Electrical and Electronics Engineers (IEEE)",

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AU - Bitar, E.

AU - Rajagopal, R.

AU - Khargonekar, P.

AU - Poolla, K.

N1 - 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, John and Janet McMurtry Fellowship, the UC DiscoveryGrant ele07-10283 under the IMPACT program, NSF under Grant EECS-0925337, and the Florida Energy Systems Consortium. This publication acknowledges KAUST support, but has no KAUST affiliated authors.

PY - 2011/6

Y1 - 2011/6

N2 - In this paper we study the problem of optimizing contract offerings for an independent wind power producer (WPP) participating in conventional day-ahead forward electricity markets for energy. As wind power is an inherently variable source of energy and is difficult to predict, we explore the extent to which co-located energy storage can be used to improve expected profit and mitigate the the financial risk associated with shorting on the offered contracts. Using a simple stochastic model for wind power production and a model for the electricity market, we show that the problem of determining optimal contract offerings for a WPP with co-located energy storage can be solved using convex programming.

AB - In this paper we study the problem of optimizing contract offerings for an independent wind power producer (WPP) participating in conventional day-ahead forward electricity markets for energy. As wind power is an inherently variable source of energy and is difficult to predict, we explore the extent to which co-located energy storage can be used to improve expected profit and mitigate the the financial risk associated with shorting on the offered contracts. Using a simple stochastic model for wind power production and a model for the electricity market, we show that the problem of determining optimal contract offerings for a WPP with co-located energy storage can be solved using convex programming.

UR - http://hdl.handle.net/10754/599956

UR - http://ieeexplore.ieee.org/document/5991431/

U2 - 10.1109/ACC.2011.5991431

DO - 10.1109/ACC.2011.5991431

M3 - Conference contribution

SN - 9781457700811

BT - Proceedings of the 2011 American Control Conference

PB - Institute of Electrical and Electronics Engineers (IEEE)

ER -

The role of co-located storage for wind power producers in conventional electricity markets

Abstract

Bibliographical note

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