How Wind Power Plants Can Affect Electricity Markets by gaming on their generation power?

In this paper, a scheme for strategic participating of wind power plants in electricity markets is proposed. In this scheme wind power plants change the quantity of their generationpower to maximize their profits by reducing their imbalance costs or increasing the market price. The impacts of the proposedstrategic scheme on electricity markets is studied both in mid and short-terms. To this end, the proposed scheme is compared withthe usual scheme of participating wind power plants in the market, i.e., wind power plants as price taker. For this study, we need toknow the bids of producers. To overcome this problem, it isassumed that the market has approached to its Nash equilibrium and the proposed schemes are compared at their Nashequilibrium. To consider uncertainty in wind power, different scenarios are considered for wind generation based on itsprobability density function. For mid-term study, it is assumed that the only available information about realization of wind power is the probability density of wind speed. For short-term study, it is assumed that wind power can be forecasted with a specified probability density function. Finally, to evaluate thestrategic behavior of wind power plants, the proposed schemes are compared by applying them to a test system

Keywords:

electricity market , supply function equilibrium , wind power plant , support schema