A study on the optimal participation of wind generator in electricity market

Trading wind energy in the electricity market is a challenging task due to the uncertain behavior of wind which is compounded further by the uncertainties in the electricity market. Although wind technology is developing fast, its availability is quite uncertain which brings in many operational difficulties compared to the traditional generation. The fluctuating nature must be considered when a Genco exercises its strategies for the wind generation in order to maximize the profit. In this paper, a bidding method for dealing with the fluctuating nature of wind is investigated using the proposed concept of bid probability level for the wind power Genco which is regarded as a price-taker in electricity market. Statistical distributions are used to model the variability of wind power. Numerical simulation studies are carried out with an intention to probabilistically identify the optimal bid quantity to achieve the maximum profit. Simple but useful results have been obtained from the proposed simulation method.