Trade-off Stochastic Game Based Bidding Strategy for Multiple Wind Farms

This paper addresses a stochastic energy bidding problem for multiple wind farms belonging to different entities. Considering competitive relationship among wind farms, a Cournot game based pricing function is introduced to describe dynamic market prices and the amount of energy bids from wind farms in day-ahead (DA) electricity market. Furthermore, the output power of wind power generations is modeled by stochastic scenarios and the Conditional Value-at-Risk (CVaR) method is applied to measure the cost of energy bids under uncertainty. Especially, a CVaR based risk term is added into the objective function to obtain trade-off bidding decisions between expected profits and financial risks. By the case study, the effectiveness and feasibility of the proposed Cournot stochastic game based bidding strategy are verified.