IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v88y2011i12p4918-4926.html
   My bibliography  Save this article

Evaluating alternative offering strategies for wind producers in a pool

Author

Listed:
  • Rahimiyan, Morteza
  • Morales, Juan M.
  • Conejo, Antonio J.

Abstract

As wind power technology matures and reaches break-even cost, wind producers find it increasingly attractive to participate in pool markets instead of being paid feed-in tariffs. The key issue is then how a wind producer should offer in the pool markets to achieve maximum profit while controlling the variability of such profit. This paper compares two families of offering strategies based, respectively, on a naive use of wind production forecasts and on stochastic programming models. These strategies are compared through a comprehensive out-of-sample chronological analysis based on real-world data. A number of relevant conclusions are then duly drawn.

Suggested Citation

  • Rahimiyan, Morteza & Morales, Juan M. & Conejo, Antonio J., 2011. "Evaluating alternative offering strategies for wind producers in a pool," Applied Energy, Elsevier, vol. 88(12), pages 4918-4926.
    • Handle: RePEc:eee:appene:v:88:y:2011:i:12:p:4918-4926
    DOI: 10.1016/j.apenergy.2011.06.038
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306261911004272
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.apenergy.2011.06.038?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Diongue, Abdou Kâ & Guégan, Dominique & Vignal, Bertrand, 2009. "Forecasting electricity spot market prices with a k-factor GIGARCH process," Applied Energy, Elsevier, vol. 86(4), pages 505-510, April.
    2. Mohr, Markus & Unger, Hermann, 1999. "Economic reassessment of energy technologies with risk-management techniques," Applied Energy, Elsevier, vol. 64(1-4), pages 165-173, September.
    3. Mackay, R.M & Probert, S.D, 1998. "Likely market-penetrations of renewable-energy technologies," Applied Energy, Elsevier, vol. 59(1), pages 1-38, January.
    4. Menz, Fredric C. & Vachon, Stephan, 2006. "The effectiveness of different policy regimes for promoting wind power: Experiences from the states," Energy Policy, Elsevier, vol. 34(14), pages 1786-1796, September.
    5. Astrand, K. & Neij, L., 2006. "An assessment of governmental wind power programmes in Sweden--using a systems approach," Energy Policy, Elsevier, vol. 34(3), pages 277-296, February.
    6. Cadenas, Erasmo & Rivera, Wilfrido, 2010. "Wind speed forecasting in three different regions of Mexico, using a hybrid ARIMA–ANN model," Renewable Energy, Elsevier, vol. 35(12), pages 2732-2738.
    7. Barthelmie, R.J. & Murray, F. & Pryor, S.C., 2008. "The economic benefit of short-term forecasting for wind energy in the UK electricity market," Energy Policy, Elsevier, vol. 36(5), pages 1687-1696, May.
    8. Snyder, Brian & Kaiser, Mark J., 2009. "Ecological and economic cost-benefit analysis of offshore wind energy," Renewable Energy, Elsevier, vol. 34(6), pages 1567-1578.
    9. Boccard, Nicolas, 2010. "Economic properties of wind power: A European assessment," Energy Policy, Elsevier, vol. 38(7), pages 3232-3244, July.
    10. Möller, Christoph & Rachev, Svetlozar T. & Fabozzi, Frank J., 2011. "Balancing energy strategies in electricity portfolio management," Energy Economics, Elsevier, vol. 33(1), pages 2-11, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kiumars Rahmani & Mehrdad S Nazar, 2017. "Coordinated bidding of wind and thermal energy in joint energy and reserve markets of Spain by considering the uncertainties," Energy & Environment, , vol. 28(8), pages 846-869, December.
    2. Pandžić, Hrvoje & Kuzle, Igor & Capuder, Tomislav, 2013. "Virtual power plant mid-term dispatch optimization," Applied Energy, Elsevier, vol. 101(C), pages 134-141.
    3. Suomalainen, Kiti & Pritchard, Geoffrey & Sharp, Basil & Yuan, Ziqi & Zakeri, Golbon, 2015. "Correlation analysis on wind and hydro resources with electricity demand and prices in New Zealand," Applied Energy, Elsevier, vol. 137(C), pages 445-462.
    4. Arjmand, Reza & Rahimiyan, Morteza, 2016. "Impact of spatio-temporal correlation of wind production on clearing outcomes of a competitive pool market," Renewable Energy, Elsevier, vol. 86(C), pages 216-227.
    5. Exizidis, Lazaros & Kazempour, S. Jalal & Pinson, Pierre & de Greve, Zacharie & Vallée, François, 2016. "Sharing wind power forecasts in electricity markets: A numerical analysis," Applied Energy, Elsevier, vol. 176(C), pages 65-73.
    6. Yıldıran, Uğur & Kayahan, İsmail, 2018. "Risk-averse stochastic model predictive control-based real-time operation method for a wind energy generation system supported by a pumped hydro storage unit," Applied Energy, Elsevier, vol. 226(C), pages 631-643.
    7. Mahmoudi, Nadali & Saha, Tapan K. & Eghbal, Mehdi, 2014. "Modelling demand response aggregator behavior in wind power offering strategies," Applied Energy, Elsevier, vol. 133(C), pages 347-355.
    8. Xiao, Yunpeng & Wang, Xifan & Wang, Xiuli & Dang, Can & Lu, Ming, 2016. "Behavior analysis of wind power producer in electricity market," Applied Energy, Elsevier, vol. 171(C), pages 325-335.
    9. Pandžić, Hrvoje & Morales, Juan M. & Conejo, Antonio J. & Kuzle, Igor, 2013. "Offering model for a virtual power plant based on stochastic programming," Applied Energy, Elsevier, vol. 105(C), pages 282-292.
    10. Tryggvi Jónsson & Pierre Pinson & Henrik Aa. Nielsen & Henrik Madsen, 2014. "Exponential Smoothing Approaches for Prediction in Real-Time Electricity Markets," Energies, MDPI, vol. 7(6), pages 1-23, June.
    11. Hosseini, Seyyed Ahmad & Toubeau, Jean-François & De Grève, Zacharie & Vallée, François, 2020. "An advanced day-ahead bidding strategy for wind power producers considering confidence level on the real-time reserve provision," Applied Energy, Elsevier, vol. 280(C).
    12. Osmani, Atif & Zhang, Jun, 2014. "Optimal grid design and logistic planning for wind and biomass based renewable electricity supply chains under uncertainties," Energy, Elsevier, vol. 70(C), pages 514-528.
    13. Haifeng Zhang & Feng Gao & Jiang Wu & Kun Liu & Xiaolin Liu, 2012. "Optimal Bidding Strategies for Wind Power Producers in the Day-ahead Electricity Market," Energies, MDPI, vol. 5(11), pages 1-20, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Harborne, Paul & Hendry, Chris, 2009. "Pathways to commercial wind power in the US, Europe and Japan: The role of demonstration projects and field trials in the innovation process," Energy Policy, Elsevier, vol. 37(9), pages 3580-3595, September.
    2. Jiang, Yu & Song, Zhe & Kusiak, Andrew, 2013. "Very short-term wind speed forecasting with Bayesian structural break model," Renewable Energy, Elsevier, vol. 50(C), pages 637-647.
    3. Thomas Lauf & Kristina Ek & Erik Gawel & Paul Lehmann & Patrik Söderholm, 2020. "The regional heterogeneity of wind power deployment: an empirical investigation of land-use policies in Germany and Sweden," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 63(4), pages 751-778, March.
    4. Shafiullah, Muhammad & Miah, Mohammad Dulal & Alam, Md Samsul & Atif, Muhammad, 2021. "Does economic policy uncertainty affect renewable energy consumption?," Renewable Energy, Elsevier, vol. 179(C), pages 1500-1521.
    5. Snyder, Brian & Kaiser, Mark J., 2009. "A comparison of offshore wind power development in europe and the U.S.: Patterns and drivers of development," Applied Energy, Elsevier, vol. 86(10), pages 1845-1856, October.
    6. del Río, Pablo & Bleda, Mercedes, 2012. "Comparing the innovation effects of support schemes for renewable electricity technologies: A function of innovation approach," Energy Policy, Elsevier, vol. 50(C), pages 272-282.
    7. Gan, Lin & Eskeland, Gunnar S. & Kolshus, Hans H., 2007. "Green electricity market development: Lessons from Europe and the US," Energy Policy, Elsevier, vol. 35(1), pages 144-155, January.
    8. Dalton, Gordon & Allan, Grant & Beaumont, Nicola & Georgakaki, Aliki & Hacking, Nick & Hooper, Tara & Kerr, Sandy & O’Hagan, Anne Marie & Reilly, Kieran & Ricci, Pierpaolo & Sheng, Wanan & Stallard, T, 2015. "Economic and socio-economic assessment methods for ocean renewable energy: Public and private perspectives," Renewable and Sustainable Energy Reviews, Elsevier, vol. 45(C), pages 850-878.
    9. Debnath, Kumar Biswajit & Mourshed, Monjur, 2018. "Forecasting methods in energy planning models," Renewable and Sustainable Energy Reviews, Elsevier, vol. 88(C), pages 297-325.
    10. Liu, Xiaolei & Lin, Zi & Feng, Ziming, 2021. "Short-term offshore wind speed forecast by seasonal ARIMA - A comparison against GRU and LSTM," Energy, Elsevier, vol. 227(C).
    11. Leschinski, Christian & Sibbertsen, Philipp, 2014. "Model Order Selection in Seasonal/Cyclical Long Memory Models," Hannover Economic Papers (HEP) dp-535, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
    12. Streckiene, Giedre & Martinaitis, Vytautas & Andersen, Anders N. & Katz, Jonas, 2009. "Feasibility of CHP-plants with thermal stores in the German spot market," Applied Energy, Elsevier, vol. 86(11), pages 2308-2316, November.
    13. Amirinia, Gholamreza & Mafi, Somayeh & Mazaheri, Said, 2017. "Offshore wind resource assessment of Persian Gulf using uncertainty analysis and GIS," Renewable Energy, Elsevier, vol. 113(C), pages 915-929.
    14. Degirmenci, Tunahan & Yavuz, Hakan, 2024. "Environmental taxes, R&D expenditures and renewable energy consumption in EU countries: Are fiscal instruments effective in the expansion of clean energy?," Energy, Elsevier, vol. 299(C).
    15. Erik Heilmann & Janosch Henze & Heike Wetzel, 2021. "Machine learning in energy forecasts with an application to high frequency electricity consumption data," MAGKS Papers on Economics 202135, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    16. Ho, Lip-Wah & Lie, Tek-Tjing & Leong, Paul TM & Clear, Tony, 2018. "Developing offshore wind farm siting criteria by using an international Delphi method," Energy Policy, Elsevier, vol. 113(C), pages 53-67.
    17. Jenner, Steffen & Groba, Felix & Indvik, Joe, 2013. "Assessing the strength and effectiveness of renewable electricity feed-in tariffs in European Union countries," Energy Policy, Elsevier, vol. 52(C), pages 385-401.
    18. Zonggui Yao & Chen Wang, 2018. "A Hybrid Model Based on A Modified Optimization Algorithm and An Artificial Intelligence Algorithm for Short-Term Wind Speed Multi-Step Ahead Forecasting," Sustainability, MDPI, vol. 10(5), pages 1-33, May.
    19. Schumacher, Kim & Yang, Zhuoxiang, 2018. "The determinants of wind energy growth in the United States: Drivers and barriers to state-level development," Renewable and Sustainable Energy Reviews, Elsevier, vol. 97(C), pages 1-13.
    20. Youhyun Lee & Inseok Seo, 2019. "Sustainability of a Policy Instrument: Rethinking the Renewable Portfolio Standard in South Korea," Sustainability, MDPI, vol. 11(11), pages 1-19, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:appene:v:88:y:2011:i:12:p:4918-4926. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.