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 proceedingConference contribution

60 Scopus citations


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 languageEnglish (US)
Title of host publicationProceedings of the 2011 American Control Conference
PublisherInstitute of Electrical and Electronics Engineers (IEEE)
ISBN (Print)9781457700811
StatePublished - Jun 2011
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, 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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