Selling price determination to the customers for a wind farm owner

Abstract

One of the largest obstacles faced by wind farm owners (WFOs) is uncertainty in generation. Due to it and uncertain pool price, it is a risky business. If the WFO could sell energy to the customers as a retailer, the risk will decrease while the profit increases. So in this case the WFO will trade with spot market and offers selling contracts to the customers. The customers can choose to buy their energy from the WFO at known prices for a year. Risk and profit both are considered as the parameters that specify the value of proposed method.