Bidding strategy based on chance-constrained programming for wind power producers

With the rapid development of wind energy, wind power producers, like other fossil energy producers, are required to bid into the electricity. Due to the uncertainty of wind power output, low forecast precision, and power unbalance punishment, wind power producers face high risks in the market. To achieve maximum profit at minimum imbalance cost, how to manage risks is critical for the wind power producers. A chance-constrained bidding strategy considering both risks and expected profit is presented. It is based on the assumption that the wind power forecast distribution is known. The strategy is used to define the probability that target profit can be realized, which is also described as a risk. By applying the strategy, a wind power producer can set up the target profit according to his attitude to the risks and coordinate the conflicting targets of profit and risks preferably. Numerical results show that this strategy is effective.