Strategic Offering for Wind Power Producers Considering Energy and Flexible Ramping Products
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.
- Authors:
-
- National Renewable Energy Lab. (NREL), Golden, CO (United States)
- Publication Date:
- Research Org.:
- National Renewable Energy Lab. (NREL), Golden, CO (United States)
- Sponsoring Org.:
- USDOE Office of Energy Efficiency and Renewable Energy (EERE), Renewable Power Office. Wind Energy Technologies Office
- OSTI Identifier:
- 1462327
- Report Number(s):
- NREL/JA-5D00-71177
Journal ID: ISSN 1996-1073
- Grant/Contract Number:
- AC36-08GO28308
- Resource Type:
- Accepted Manuscript
- Journal Name:
- Energies (Basel)
- Additional Journal Information:
- Journal Name: Energies (Basel); Journal Volume: 11; Journal Issue: 5; Journal ID: ISSN 1996-1073
- Publisher:
- MDPI AG
- Country of Publication:
- United States
- Language:
- English
- Subject:
- 17 WIND ENERGY; 24 POWER TRANSMISSION AND DISTRIBUTION; wind power; flexible ramping; strategic offers; electricity market; mathematical program with equilibrium constraints
Citation Formats
Fang, Xin, Krishnan, Venkat, and Hodge, Bri-Mathias. Strategic Offering for Wind Power Producers Considering Energy and Flexible Ramping Products. United States: N. p., 2018.
Web. doi:10.3390/en11051239.
Fang, Xin, Krishnan, Venkat, & Hodge, Bri-Mathias. Strategic Offering for Wind Power Producers Considering Energy and Flexible Ramping Products. United States. https://doi.org/10.3390/en11051239
Fang, Xin, Krishnan, Venkat, and Hodge, Bri-Mathias. Sun .
"Strategic Offering for Wind Power Producers Considering Energy and Flexible Ramping Products". United States. https://doi.org/10.3390/en11051239. https://www.osti.gov/servlets/purl/1462327.
@article{osti_1462327,
title = {Strategic Offering for Wind Power Producers Considering Energy and Flexible Ramping Products},
author = {Fang, Xin and Krishnan, Venkat and Hodge, Bri-Mathias},
abstractNote = {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.},
doi = {10.3390/en11051239},
journal = {Energies (Basel)},
number = 5,
volume = 11,
place = {United States},
year = {Sun May 13 00:00:00 EDT 2018},
month = {Sun May 13 00:00:00 EDT 2018}
}
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