Optimal coordinated wind-photovoltaic bidding in electricity markets

Abstract

The high penetration of wind and photovoltaic power in electricity markets will represent a major challenge in the forthcoming years. The main problem of both technologies is the high uncertainty in their production and their dependence on environmental conditions. The coordination between wind and photovoltaic power aims to lower imbalances, reducing their associated penalties. This paper describes two strategies: i) separate wind and photovoltaic strategy and ii) single wind-photovoltaic strategy. The strategies proposed are solved through stochastic mixed integer linear programming. The expected profits are maximized and they are obtained by selling the energy in the day-ahead market. The imbalances are penalized in the balancing market as well. The model is tested for a week, 168 hours, and the data used come from the Spanish electricity market. The results of the case study are discussed, comparing both strategies. Following the discussion, the most important conclusions are presented.