Stochastic Cournot Model for Coordinated Strategic Bidding of Wind-Storage Systems
Year: 2025
Type: article
Abstract: In recent years, government incentives and subsidies have driven significant growth in wind power plant (WPP) capacity, establishing WPPs as key players in the evolving electricity market. However, the inherent variability of wind generation introduces challenges, including potential penalties for deviations in energy output. Energy Storage Systems (ESS) serve as a versatile solution to mitigate the uncertainties associated with wind power variability. This paper proposes a comprehensive model for the joint bidding of WPPs and ESS in competitive electricity markets. The interactions between WPPs and ESS are modeled using a stochastic Cournot framework, accounting for wind power uncertainties through inter-hour ramp constraints. A Location-Based Dual Imbalance Price (DIP) mechanism is adopted for wind-storage systems operating within a network-constrained oligopolistic electricity market. The Nash equilibrium strategy is used to optimize the WPP-ESS bids, considering the competitive behavior of other market participants. A Mixed Integer Linear Programming (MILP) model is developed to determine the Nash equilibrium by evaluating a payoff matrix. Various practical scenarios are analyzed to demonstrate the efficacy of the proposed approach. Furthermore, the study investigates the influence of different imbalance price mechanisms on WPP-ESS profits, market clearing operations, and Nash equilibrium outcomes.
Source: IEEE Access
Authors: Swati Gupta, Bharat Bhushan Sharma, Pawan Kumar Pathak, Vivek Prakash, Sandeep Chawda, Sachin Sharma
Institutions: Banasthali University, Manipal Academy of Higher Education
Language: English
Subfield: Electrical and Electronic Engineering
Field: Engineering
Domain: Physical Sciences
Open Access status: gold
Estimated APC paid: $2,075
OpenAlex ID: W4411232104