Risk management strategies for a wind power producer in electricity markets

Abstract

Under a market framework, the development of optimal offering strategies is crucial for wind power producers to achieve maximum profit. In this paper, a two-stage stochastic programming approach is proposed, considering the uncertainties on wind power production and electricity market prices. An artificial intelligence model allows generating wind-price scenarios. Also, risk management is appropriately addressed. Results from a real-world case study are presented, in order to illustrate the proficiency of the proposed approach.