Information Value Based on the Scenario of Wind Power Trading in Electricity Markets

Abstract

As a newly-emerged intangible asset, information plays an important role in more and more fields and environments, and its value is increasingly analyzed and explored. In the power industry, there are severe uncertainties in electric load, output power and electricity market price, which may lead to economic loss of corresponding market entities. Therefore, accurate information is necessary for market entities to eliminate uncertainties and improve their economic benefits. To clarify information value, the scenario of wind power trading is selected in electricity markets, and information gap decision theory (IGDT) is used for theoretical analysis. This paper introduces the decision model of independent system operators (ISOs) in electricity markets, describes the information value in the scenario through IGDT, and finally formulates a universal information value evaluation model. Both theoretical results and case studies verify the existence of information value and the validity of its evaluation model.