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 journalArticlepeer-review

47 Citations (Scopus)


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.
Original languageEnglish
Pages (from-to)106-114
Number of pages8
JournalIEE Proceedings Generation Transmission and Distribution
Issue number1
Publication statusPublished - 2006


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


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