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Participation of photovoltaic power producers in short-term electricity markets based on rescheduling and risk-hedging mapping

Authors

SÁNCHEZ DE LA NIETA LÓPEZ, AGUSTÍN ALEANDRO, Paterakis, Nikolaos G. , Gibescu, Madeleine

External publication

No

Means

Appl. Energy

Scope

Article

Nature

Científica

JCR Quartile

SJR Quartile

JCR Impact

9.746

SJR Impact

3.035

Publication date

15/05/2020

ISI

000525759600039

Scopus Id

2-s2.0-85082176960

Abstract

Optimal bidding that considers different electricity market floors can increase the financial gains of photovoltaic (PV) power producers. However, the current approach to trading PV power essentially consists of committing to sell the forecasted PV generation. To analyze profits and investigate new business opportunities for PV power producers, this paper proposes two novel stochastic programming-based methods for scheduling and rescheduling for trading the PV generated energy in day-ahead and intraday electricity markets. Risk-hedging is also considered in terms of co-optimizing the expected profit with the Conditional Value-at-Risk (CVaR) metric. As a consequence of the structure and organization of the market floors and due to different market windows, rescheduling is necessary to exploit the most recent information. Updated rescheduling progressively reveals actual profits or losses, risk-hedging possible engagement in business transactions, and the final effect of strategic bidding. A case study in the Spanish electricity market based on actual data is presented. The analysis of the case study shows the influence of the three market floors (day-ahead, intraday, and imbalance), the participation in multiple intraday sessions, risk-hedging, and rescheduling on the profits of the PV producer.

Keywords

Balancing market; Conditional value-at-risk; Day-ahead market; Intraday market; PV power producer; Strategic bidding