Offering Strategy of Wind Power Producers Considering Strategic Position in Intraday Market

Abstract

Significant capacity of wind power producers (WPPs) compared to the total installed generation grants a dominant position to these producers in the market environment. Accordingly, The present study concerns the optimal offering strategy of a strategic WPP. The price-maker WPP offers to day-ahead (DA) and intraday (ID) markets to manipulate prices in order to attain further profits. Also, it compensates its deviations of production in the balancing (BAL) market. The proposed framework is a bi-level model that can be formulated as a mathematical program with equilibrium constraints (MPEC). By utilizing the strong duality theorem, Karush-Kuhn-Tucker (KKT) conditions, and the Fortuny-Amat method the problem is transformed into a mixed-integer linear programming (MILP) model. Demand bids, rival producers' offerings, and wind production are incorporated into the model through scenarios. A 3-bus system and IEEE 24-bus RTS are used as case studies to delineate the efficiency of the methodology.