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Aggregate Wind Power Production via Coalitional Games and Optimal Control

Author

Listed:
  • Jeffrey Eiyike

    (University of Agriculture)

  • Dario Bauso

    (University of Sheffield
    Università di Palermo)

Abstract

In this paper, benefits from aggregating independent wind power producers are analyzed in a scenario, in which the producers willingly form coalitions to increase their expected profits. For every deviation from the declared contract, the coalition is penalized and a cost is paid, if the producers want to update their contract. The underlying idea is that coalitions reduce the risk of being penalized. The main contribution of this paper is a new market model and an allocation mechanism based on optimal control and coalitional games with transferable utilities. Optimal control is used to obtain the optimal contract size, while coalitional games provide an insight on stable revenue allocations, namely allocations, that make the grand coalition preferable to all producers.

Suggested Citation

  • Jeffrey Eiyike & Dario Bauso, 2018. "Aggregate Wind Power Production via Coalitional Games and Optimal Control," Journal of Optimization Theory and Applications, Springer, vol. 178(1), pages 289-303, July.
    • Handle: RePEc:spr:joptap:v:178:y:2018:i:1:d:10.1007_s10957-018-1282-9
    DOI: 10.1007/s10957-018-1282-9
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    References listed on IDEAS

    as
    1. Luis M. Abadie & José M. Chamorro, 2014. "Valuation of Wind Energy Projects: A Real Options Approach," Energies, MDPI, vol. 7(5), pages 1-38, May.
    2. Sankaran, Jayaram K, 1991. "On Finding the Nucleolus of an N-Person Cooperative Game," International Journal of Game Theory, Springer;Game Theory Society, vol. 19(4), pages 329-338.
    3. Verdejo, Humberto & Awerkin, Almendra & Saavedra, Eugenio & Kliemann, Wolfgang & Vargas, Luis, 2016. "Stochastic modeling to represent wind power generation and demand in electric power system based on real data," Applied Energy, Elsevier, vol. 173(C), pages 283-295.
    Full references (including those not matched with items on IDEAS)

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