Optimal Double Auction Bidding Strategy Considering Ancillary Services and Demand Response

Strategic bidding is needed for wind power plants (WPP) to reduce accepted bids and actual output imbalances. These imbalances do not let the WPP participate in competitive electricity markets due to bid deviation in penalty cost. A joint double auction bidding strategy is developed for WPP to coordinate pumped storage hydro plant(PSHP) and demand response(DR) to reduce the wind power actual output imbalances. A convex bidding model is formulated for WPP, PSP, and DR in both day-ahead energy and ancillary service markets by considering upward spinning reserve(UPSR) and downward spinning reserve(DWSR). Also, fixed, shiftable, curtailable, and incremental loads are considered for DR. The proposed bidding strategy is demonstrated using a WPP of capacity 650 MW, six PSHP units with each capacity of 250 MW, and a PSHP auxiliary start unit of 550 MW. The formulated problem is solved using MATLAB 2021a, CVX modeling language. Results have shown that the double auction bidding strategy outperformed the single auction bidding strategy in terms of WPP revenue.