Offering strategy for a photovoltaic power plant in electricity market

Abstract

With the large-scale manufacturing and production, the per-unit cost of energy from photovoltaic modules have decreased, and the incentives given by the governments are slowly withdrawn. Consequently, the photovoltaic power plants are able to, and asked to, participate in the electricity markets to trade its power competing with conventional generators. This work contributes to the offering strategies for photovoltaic power plants in the day-ahead electricity market with balancing market. The uncertain variables considered are day-ahead electricity prices and actual solar power production for which scenarios are created from historical data. The photovoltaic power plant is modeled as a price taker and the offering problem is solved as a linear programming problem with stochastic optimization.