Optimal Wind Energy Scheduling under Volatile Resource and Market Price Conditions

Abstract

This paper presents an optimal wind energy scheduling approach for the independent system operator (ISO) with considering the volatile nature of the wind energy resource and energy bids in real time. The optimal schedule minimizes total generation cost, real time contractual compensation costs rescheduling costs etc. The scheduling problem is modelled as two step optimization problem where day Ahead (DA) market and real time (RT) market conditions are considered. This approach uses front end information (bid information) available in DA market and expected price, wind energy variation in the RT market system. The proposed mechanism is validated using IEEE 30 bus data system and system results justifies effectiveness of the proposed model compared to deterministic model for optimal posturing of wind energy generation in deregulated electricity market through reduced RT balancing costs associated with compensation and rescheduling costs.