Research on Wind & Thermal Power Joint Bidding Strategy Considering Penalties for Wind Power's Bidding Deviation

Abstract

With the growing maturity of wind power technologies and the decrease of wind power construction costs, wind power producers, who are always price takers, gradually become the market participants with strategic bidding capacity in electricity market. However, wind power producers should be responsible for the loss caused by bidding deviation when they participate in electricity market due to uncertainty of wind power, which can cut down their benefits. In order to study the bidding strategies of the wind power producers in day-ahead market, a wind & thermal power joint (W&T) bidding model considering penalties for wind power's bidding deviation was established based on supply function equilibrium approach, in which Monte-Carlo method and backward reduction were used to simulate future wind power. In addition, particle swarm optimization method is used to solve the model. Compared with the independent bidding, a simulation example showed that wind & thermal power joint bidding can effectively improve the revenues of wind power producers, especially increase the incomes from day-ahead market, so that the initiative of wind power producers in day-ahead market can be greatly enhanced.