Price based unit commitment with wind generation and market clearing price variations

Abstract

Bidding plays an important role for Gencos (Generation Companies) participating in competitive electricity markets with the objective of maximizing profit. The characteristics of generators and price uncertainty need to be considered while formulating bidding strategies as they have a direct impact on expected profit. The rapid development of wind technology leads to an increasing share of wind power in the market and should be considered for calculating the Market Clearing Price (MCP). In this paper, the effects of wind intermittency on MCP variations of the wind farm generators are considered for the price based unit commitment strategy of the Genco. Simulations are performed on an IEEE 30-bus test system with wind farm that indicate significant corrections in day ahead forecasted PBUC (Price Based Unit Commitment) schedule and real time dispatch schedule of the Genco for optimal bidding.