Modeling the bids of wind power producers in the day-ahead market with stochastic market clearing

Ming Lei*, Jin ZHANG, Xiaodai Dong, Jane J. Ye

*Corresponding author for this work

Research output: Contribution to journalJournal articlepeer-review

25 Citations (Scopus)


This paper studies optimal bidding decision for a strategic wind power producer participating in a day-ahead market that employs stochastic market clearing and energy and reserver co-optimization. The proposed procedure to derive strategic offers relies on a stochastic bilevel model: the upper level problem represents the profit maximization of the strategic wind power producer, while the lower level one represents the market clearing and the corresponding price formulation aiming to co-optimize both energy and reserve. Using the Karush-Kuhn-Tucker optimality condition for the lower level problem, this stochastic bilevel model is reformulated as a stochastic mathematical program with equilibrium constraints and solved using a suitable relaxation scheme. The effectiveness of the proposed method is demonstrated by two illustrative case studies.

Original languageEnglish
Pages (from-to)151-161
Number of pages11
JournalSustainable Energy Technologies and Assessments
Publication statusPublished - 1 Aug 2016

Scopus Subject Areas

  • Renewable Energy, Sustainability and the Environment
  • Energy Engineering and Power Technology

User-Defined Keywords

  • Bilevel model
  • Relaxation scheme
  • Stochastic market clearing
  • Stochastic mathematical program with equilibrium constraints
  • Strategic wind power producer


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