Managing the risk of trading wind energy in a competitive market

S. Galloway, G. Bell, T. Siewierski, G.M. Burt, J.R. McDonald

Research output: Contribution to journalArticle

47 Citations (Scopus)

Abstract

There is a high level of financial risk associated with the direct participation of wind generation in liberalised electricity markets, due to the stochastic nature of output and imbalance charges set by market prices. The positioning of generation with respect to the market is therefore critical to successful trading activities. Examined is the use of risk characterisation to select the best output level for a wind generator to trade, dependant on maximising revenue and managing marginal costs from imbalances in a competitive market situation. Trading strategies based on utility risk assessment are presented as a possible way to improve market participation for wind generators based on these criteria.
LanguageEnglish
Pages106-114
Number of pages8
JournalIEE Proceedings Generation Transmission and Distribution
Volume153
Issue number1
DOIs
Publication statusPublished - 2006

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Wind power
Risk assessment
Costs
Power markets

Keywords

  • wind energy
  • power systems
  • energy distribution
  • energy market

Cite this

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Managing the risk of trading wind energy in a competitive market. / Galloway, S.; Bell, G.; Siewierski, T.; Burt, G.M.; McDonald, J.R.

In: IEE Proceedings Generation Transmission and Distribution, Vol. 153, No. 1, 2006, p. 106-114.

Research output: Contribution to journalArticle

TY - JOUR

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AU - Galloway, S.

AU - Bell, G.

AU - Siewierski, T.

AU - Burt, G.M.

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KW - power systems

KW - energy distribution

KW - energy market

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DO - 10.1049/ip-gtd:20045165

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