Optimal contracts for wind power producers in electricity markets

Type
Conference Paper
Authors
Bitar, E.
Giani, A.
Rajagopal, R.
Varagnolo, D.
Khargonekar, P.
Poolla, K.
Varaiya, P.
KAUST Grant Number
025478
Date
2010-12

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Abstract
This 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.
Citation
Bitar 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.
Sponsors
Supported 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.
Publisher
Institute of Electrical and Electronics Engineers (IEEE)
Journal
49th IEEE Conference on Decision and Control (CDC)
DOI
10.1109/CDC.2010.5717453
Handle URI
http://hdl.handle.net/10754/599088
Collections
Publications Acknowledging KAUST Support