Strategic Behaviors of Wind Generators in a Stochastic Joint Power Market Equilibrium

Abstract

With the increase of wind penetration and the mature of wind technology, wind generators (WGs) will get involved in market competition and have nonnegligible impacts on the market equilibrium. This paper proposes a stochastic joint equilibrium model to depict markets with high renewable penetration, with the wind stochasticity formulated by scenario analysis. Since the stochasticity of wind calls for additional ancillary service provision, a joint equilibrium of energy and reserve markets is developed, and strategic behaviors of WGs are considered. A real-time penalty scheme is introduced to regulate WGs' strategic behaviors. Market equilibrium based on the above settings are demonstrated based on a numerical study.