Wind power offering strategy in day-ahead markets: employing demand response in a two-stage plan

This paper deals with wind power offering strategies in day-ahead markets. A new plan is proposed in which a wind power producer participates in the day-ahead market while employing demand response (DR) to smooth its power variations. In this context, a new DR scheme is presented through which the wind power producer is able to achieve DR by establishing various DR agreements with DR aggregators. The proposed offering plan involves two stages: the first stage clears on the day-ahead market. The wind power producer decides on day-ahead offers as well as DR agreements with the aggregator. The second stage takes place on the balancing market. In a successive approach, the wind power producer determines its energy trading for each period until the whole day is covered. Additionally, proper DR agreements for each period are confirmed here. The proposed plan is formulated in a stochastic programming approach, where its validity is assessed on a case of the Nordic market