Short-term strategies for Dutch wind power producers to reduce imbalance costs

Abstract

The paper assesses bidding strategies for a wind power producer in the Netherlands.To this end, a three-stages tochastic optimization framework is used, maximizing wind power producer’s profit using the day-ahead and cross-border intraday market, taking into account available interconnection capacity. Results show that the wind power producer can increase its profits by trading on the intraday market and - under certain imbalance prices - by intentionally creating imbalances. It has been considered uncertainties about prices, power forecast and interconnection capacity at the day - ahead and intraday time frames.The paper assesses bidding strategies for a wind power producer in the Netherlands.To this end, a three-stages tochastic optimization framework is used, maximizing wind power producer’s profit using the day-ahead and cross-border intraday market, taking into account available interconnection capacity. Results show that the wind power producer can increase its profits by trading on the intraday market and - under certain imbalance prices - by intentionally creating imbalances. It has been considered uncertainties about prices, power forecast and interconnection capacity at the day - ahead and intraday time frames.