Optimal strategies for selling wind power in mid-term energy auctions

Abstract

Due to the environmental pollution and the emission of CO2 of conventional fossil-fueled power plants, renewable energy sources are becoming an important part of the generation mix in many electricity markets. For example, in the Spanish market, during the day March 27th 2008, wind power covered the 24 of the daily demand. This is a consequence of the active role that wind producers have taken in the Spanish system by participating both in the day-ahead spot market and in the base-load energy auctions organized to cover a percentage of the demand of the distribution companies. This panel-session paper presents the basic ideas of a more detailed paper under development, and its main objective is to find the optimal strategy of a wind producer to sells its energy in mid-term demand procurement auctions subject to price and production uncertainty.