Optimal contracts for wind power producers in electricity markets

E. Bitar; A. Giani; R. Rajagopal; D. Varagnolo; P. Khargonekar; K. Poolla; P. Varaiya

doi:10.1109/CDC.2010.5717453

Optimal contracts for wind power producers in electricity markets

E. Bitar, A. Giani, R. Rajagopal, D. Varagnolo, P. Khargonekar, K. Poolla, P. Varaiya

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution

21 Scopus citations

Abstract

This paper is focused on optimal contracts for an independent wind power producer in conventional electricity markets. Starting with a simple model of the uncertainty in the production of power from a wind turbine farm and a model for the electric energy market, we derive analytical expressions for optimal contract size and corresponding expected optimal profit. We also address problems involving overproduction penalties, cost of reserves, and utility of additional sensor information. We obtain analytical expressions for marginal profits from investing in local generation and energy storage. ©2010 IEEE.

Original language	English (US)
Title of host publication	49th IEEE Conference on Decision and Control (CDC)
Publisher	Institute of Electrical and Electronics Engineers (IEEE)
Pages	1919-1926
Number of pages	8
ISBN (Print)	9781424477456
DOIs	https://doi.org/10.1109/CDC.2010.5717453
State	Published - Dec 2010
Externally published	Yes

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10.1109/CDC.2010.5717453

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title = "Optimal contracts for wind power producers in electricity markets",

abstract = "This paper is focused on optimal contracts for an independent wind power producer in conventional electricity markets. Starting with a simple model of the uncertainty in the production of power from a wind turbine farm and a model for the electric energy market, we derive analytical expressions for optimal contract size and corresponding expected optimal profit. We also address problems involving overproduction penalties, cost of reserves, and utility of additional sensor information. We obtain analytical expressions for marginal profits from investing in local generation and energy storage. {\textcopyright}2010 IEEE.",

author = "E. Bitar and A. Giani and R. Rajagopal and D. Varagnolo and P. Khargonekar and K. Poolla and P. Varaiya",

note = "KAUST Repository Item: Exported on 2020-10-01 Acknowledged KAUST grant number(s): 025478 Acknowledgements: Supported in part by OOF991-KAUST US LIMITED under awardnumber 025478, the UC Discovery Grant ele07-10283 under the IMPACTprogram, and NSF under Grant EECS-0925337, and the Florida EnergySystems Consortium. This publication acknowledges KAUST support, but has no KAUST affiliated authors.",

year = "2010",

month = dec,

doi = "10.1109/CDC.2010.5717453",

language = "English (US)",

isbn = "9781424477456",

pages = "1919--1926",

booktitle = "49th IEEE Conference on Decision and Control (CDC)",

publisher = "Institute of Electrical and Electronics Engineers (IEEE)",

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T1 - Optimal contracts for wind power producers in electricity markets

AU - Bitar, E.

AU - Giani, A.

AU - Rajagopal, R.

AU - Varagnolo, D.

AU - Khargonekar, P.

AU - Poolla, K.

AU - Varaiya, P.

N1 - KAUST Repository Item: Exported on 2020-10-01 Acknowledged KAUST grant number(s): 025478 Acknowledgements: Supported in part by OOF991-KAUST US LIMITED under awardnumber 025478, the UC Discovery Grant ele07-10283 under the IMPACTprogram, and NSF under Grant EECS-0925337, and the Florida EnergySystems Consortium. This publication acknowledges KAUST support, but has no KAUST affiliated authors.

PY - 2010/12

Y1 - 2010/12

N2 - This paper is focused on optimal contracts for an independent wind power producer in conventional electricity markets. Starting with a simple model of the uncertainty in the production of power from a wind turbine farm and a model for the electric energy market, we derive analytical expressions for optimal contract size and corresponding expected optimal profit. We also address problems involving overproduction penalties, cost of reserves, and utility of additional sensor information. We obtain analytical expressions for marginal profits from investing in local generation and energy storage. ©2010 IEEE.

AB - This paper is focused on optimal contracts for an independent wind power producer in conventional electricity markets. Starting with a simple model of the uncertainty in the production of power from a wind turbine farm and a model for the electric energy market, we derive analytical expressions for optimal contract size and corresponding expected optimal profit. We also address problems involving overproduction penalties, cost of reserves, and utility of additional sensor information. We obtain analytical expressions for marginal profits from investing in local generation and energy storage. ©2010 IEEE.

UR - http://hdl.handle.net/10754/599088

UR - http://ieeexplore.ieee.org/document/5717453/

UR - http://www.scopus.com/inward/record.url?scp=79953149655&partnerID=8YFLogxK

U2 - 10.1109/CDC.2010.5717453

DO - 10.1109/CDC.2010.5717453

M3 - Conference contribution

SN - 9781424477456

SP - 1919

EP - 1926

BT - 49th IEEE Conference on Decision and Control (CDC)

PB - Institute of Electrical and Electronics Engineers (IEEE)

ER -

Optimal contracts for wind power producers in electricity markets

Abstract

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