Benefits of demand response on a wind power producer bidding strategy

This paper proposes an optimal bidding strategy for a wind producer who participates as price-maker in the day-ahead electricity market. In order to empower the wind producer against the challenges introduced by the intermittent nature of wind power and improve his position into the market, demand response schemes are considered to be incorporated into his portfolio. The producer objective is the maximization of the day-ahead profit in conjunction with the minimization of the anticipated real-time production imbalance charges. A two-stage stochastic bi-level optimization model has been formulated, where the uncertainty lies in the day-ahead wind production and load consumption. Simulations on the Greek power system prove the effectiveness of the proposed synergy.