Bidding wind power in short-term electricity market based on multiple-objective fuzzy optimization

Wind energy is promising with no fuel cost and zero greenhouse gas emissions; however, its intermittent and volatile nature has added much to operation burdens and thus a low penetration level in short-term or spot market. On the one hand, the power system operator is facing increased spinning reserve and generation uncertainty; on the other hand, the wind independent power producer (IPP) is subject to imbalance penalties in the balancing market. Previous literatures solely focused on maximizing the profit for a wind IPP formulating optimal bidding strategies without the consideration of operator side. This paper proposes a multiple-objective optimal bidding strategy to achieve both wind IPP's maximum profit and less challenge for the operator. The strategy is formulated as a mixed-integer linear programming (MILP) problem with fuzzy optimization techniques. Analytic and numerical solutions will be given with discussion on risk control.