e-Prime: Advances in Electrical Engineering, Electronics and Energy (Mar 2024)
A novel trading strategy to assess techno-economics of wind farms in both energy and reserve markets
Abstract
The gradual attainment of sustainability and globalization can be facilitated by the development of sustainable energy sources. To this day, the deficiency of an appropriate market structure and trading mechanism impedes wind farm producers from participating in the short-term competitive electricity markets. This paper presents a novel approach and techno-economic assessment to improve financial viability by addressing the challenge of wind power trading in the day-ahead energy and reserve market. A novel strategy for trading wind power is proposed in order to optimize the utilization of this green energy resource within these markets. The proposed strategy intends to ensure the revenue returns from surplus imbalance energy during periods with significantly high wind and optimize economic benefits by scheduling energy to the reserve market. Critical review and analyses demonstrate the viability of the proposed wind power trading mechanism. Within this particular context, a novel distribution factor is proposed as a means of effectively distributing the surplus imbalance energy in both the aforementioned markets. The model's performance is evaluated by means of a practical dataset and prevailing Green Day-ahead Market rates. The estimation of capacity allocation and revenue outcomes for wind farms is conducted on a per-market basis. Here, the empirical results derived from various case studies and comparative analyses reveal that the proposed strategy yields substantially higher profit margin for the wind farm ranging from 12.5 % to 31.43 % (seasonally) for its energy allocation to the reserve market.
