Parametric Sensitivity Study for Wind Power Trading through Stochastic Reserve and Energy Market Optimization

Trading optimal wind power in energy and regulation markets offer possibilities for increasing revenues as well as impacting security of the system via additional regulation reserve. The bidding in both energy and regulation markets can be computed through stochastic optimization process of both markets as demonstrated in a previous study by Liang. This paper is furthering the previous study by Liang by analyzing the impact of price ratios between energy and reserve market on the revenues for Swedish market. The parametric study reveals that as long as up-regulation prices are below day-ahead energy, the algorithm will bid in both markets to optimize revenue. When regulation prices surpass or equal to day-ahead energy market price then it only bids energy in the regulation market with the current objective function.