Sharing of profit from coordinated operation planning and bidding of hydro and wind power

Abstract

Depending on market rules, namely congestion management and balancing management, coordination between wind and hydro producers may be mutually beneficial. In this paper we propose a new collaboration scheme and a fair and transparent method, based on the Shapley value, for splitting the extra value caused by a coordinated bidding and operation strategy. We account for uncertainties in wind forecast and energy price evolution. We demonstrate the proposed approaches on a realistic system including congested lines, wind farm and a hydro plant consisting of several reservoir stages. © 2010 IEEE.