IEEE TRANSACTIONS ON SUSTAINABLE ENERGY 1 Risk-Constrained Offering Strategy for Aggregated Hybrid Power Plant Including Wind Power Producer and Demand Response Provider

Abstract—The unpredictable and volatile nature of wind power is the main obstacle of this generation source in short term trading. Owing to the ability of demand side to cover wind power imbalances, aggregated loads have been presented in the literature as a good complementary resource for the wind generation. To this end, this paper proposes a technique to obtain the best offering strategy for a hybrid power plant consisting of a wind power producer and a demand response provider in the power market. In addition, conditional value-at-risk is used to limit the risk on profit variability. Finally, a detailed analysis of a realistic case study based on a wind farm in Spain has illustrated that joint operation of wind power producers and demand response providers can increase the expected profit and reduce the potential risks. Index Terms—Hybrid power plant, wind power, demand re-sponse, offering strategy, stochastic programming. NOMENCLATURE The main notation of the paper is expressed below for quick reference. The other symbols are described as required. A. Indices and Numbers t (T) Index (set) for hourly periods. ω (Ω) Index (set) for scenarios. B. Parameters Wmax Wind farm capacity (in MWh). α Confidence level. β Risk-aversion parameter. ϑ ∗ Fixed rate for each MW load reduction (in AC/MWh). µ Maximum percent of the load did not need to be recovered. σ Factor which define relation of elasticity and price. η1,η2 Upper and Lower bound of demand response. D0t Normal demand level in period t (in MWh)