DocumentCode :
25868
Title :
Competition and Coalition Formation of Renewable Power Producers
Author :
Baosen Zhang ; Johari, Ramesh ; Rajagopal, Ram
Author_Institution :
Depts. of Civil & Environ. Eng. & Manage. Sci. & Eng., Stanford Univ., Palo Alto, CA, USA
Volume :
30
Issue :
3
fYear :
2015
fDate :
May-15
Firstpage :
1624
Lastpage :
1632
Abstract :
We investigate group formations and strategic behaviors of renewable power producers in electricity markets. These producers currently bid into the day-ahead market in a conservative fashion because of the real-time risk associated with not meeting their bid amount. It has been suggested in the literature that producers would bid less conservatively if they can form large groups to take advantages of spatial diversity to reduce the uncertainty in their aggregate output. We show that large groups of renewable producers would act strategically to lower the aggregate output because of market power. To maximize renewable power production, we characterize the trade-off between market power and generation uncertainty as a function of the size of the groups. We show there is a sweet spot in the sense that there exists groups that are large enough to achieve the uncertainty reduction of the grand coalition, but are small enough such that they have no significant market power. We consider both independent and correlated forecast errors under a fixed real-time penalty. We also consider a real-time market where both selling and buying of energy are allowed. We validate our claims using PJM and NREL data.
Keywords :
load forecasting; power markets; renewable energy sources; tendering; bidding process; correlated forecast error; day-ahead electricity market; generation uncertainty reduction; independent forecast error; renewable power producer coalition formation; spatial diversity; Aggregates; Electricity supply industry; Games; Generators; Random variables; Real-time systems; Uncertainty; Coalitions and competition; Cournot games; electricity markets; renewable integration;
fLanguage :
English
Journal_Title :
Power Systems, IEEE Transactions on
Publisher :
ieee
ISSN :
0885-8950
Type :
jour
DOI :
10.1109/TPWRS.2014.2385869
Filename :
7014306
Link To Document :
بازگشت