Optimal contracts for wind power producers in electricity markets

E. Bitar, A. Giani, R. Rajagopal, D. Varagnolo, P. Khargonekar, K. Poolla, P. Varaiya

Research output: Chapter in Book/Report/Conference proceedingConference contribution

19 Scopus citations

Abstract

This paper is focused on optimal contracts for an independent wind power producer in conventional electricity markets. Starting with a simple model of the uncertainty in the production of power from a wind turbine farm and a model for the electric energy market, we derive analytical expressions for optimal contract size and corresponding expected optimal profit. We also address problems involving overproduction penalties, cost of reserves, and utility of additional sensor information. We obtain analytical expressions for marginal profits from investing in local generation and energy storage. ©2010 IEEE.
Original languageEnglish (US)
Title of host publication49th IEEE Conference on Decision and Control (CDC)
PublisherInstitute of Electrical and Electronics Engineers (IEEE)
Pages1919-1926
Number of pages8
ISBN (Print)9781424477456
DOIs
StatePublished - Dec 2010
Externally publishedYes

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