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)|
|State||Published - Jun 2011|
Bibliographical noteKAUST 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.