CVaR-based stochastic wind-thermal generation coordination for Turkish electricity market

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Date

2019-09-01

Author

AYDOGDU, Aycan
TOR, BULENT OSMAN
Güven, Ali Nezih

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This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

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Uncertainties in wind power forecast, day-ahead and imbalance prices for the next day possess a great deal of risk for the profit of generation companies participating in a day-ahead electricity market. Generation companies are exposed to imbalance penalties in the balancing market for unordered mismatches between associated day-ahead power schedule and real-time generation. Coordination of wind and thermal power plants alleviates the risks raised from wind uncertainties. This paper proposes a novel optimal coordination strategy by balancing wind power forecast deviations with thermal units in the Turkish day-ahead electricity market. The main focus of this study is to provide an optimal trade-off between the expected profit and the risk under wind uncertainty through conditional value at risk (CVaR) methodology. Coordination problem is formulated as a two-stage mixed-integer stochastic programming problem, where scenario-based wind power approach is used to handle the stochasticity of the wind power. Dynamic programming approach is utilized to attain the commitment status of thermal units. Profitability of the coordination with different day-ahead bidding strategies and trade-off between expected profit and CVaR are examined with comparative scenario studies.

Subject Keywords

Conditional value at risk (CVaR), Wind-thermal coordination, Electricity market, Wind power, Thermal power

URI

https://hdl.handle.net/11511/38584

Journal

JOURNAL OF MODERN POWER SYSTEMS AND CLEAN ENERGY

DOI

https://doi.org/10.1007/s40565-018-0492-3

Collections

Department of Electrical and Electronics Engineering, Article

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Citation Formats

A. AYDOGDU, B. O. TOR, and A. N. Güven, “CVaR-based stochastic wind-thermal generation coordination for Turkish electricity market,” JOURNAL OF MODERN POWER SYSTEMS AND CLEAN ENERGY, pp. 1307–1318, 2019, Accessed: 00, 2020. [Online]. Available: https://hdl.handle.net/11511/38584.