Optimal contracts for wind power producers in electricity markets
KAUST Grant Number025478
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AbstractThis 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.
CitationBitar E, Giani A, Rajagopal R, Varagnolo D, Khargonekar P, et al. (2010) Optimal contracts for wind power producers in electricity markets. 49th IEEE Conference on Decision and Control (CDC). Available: http://dx.doi.org/10.1109/CDC.2010.5717453.
SponsorsSupported 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.