Optimal Bidding and Offering Curves for Joint Operation of a Wind Farm and an Electrical Energy Storage Considering Market Regulations

Abstract

Due to the significant fluctuations in the generated power of wind farms (WFs) and controllability of electrical energy storage systems (EESs), the joint operation of them in the markets is considered as the most profitable operation strategy. This paper presents a complete scheme for optimal bidding/offering joint participation of WFs and EESs in day-ahead energy and spinning reserve markets considering different sources of uncertainty by using two-stage stochastic programming. In addition, the risk of participation is measured by conditional value at risk. In the literature, as the expected profit is maximized, the impact of the operation of participants and market regulations on the total system operation is not emphasized. However, in this paper, a set of penalty factors are designed to investigate the impact of different market regulations on the proposed problem.