Two Stage Framework for Techno-Economic Analysis of Electricity Pool Markets Integrated with Stochastic Wind Power

In this era of green energy, for the market clearing, a modelling approach is needed which can consider all the possible technical and economic aspects of wind energy which helps market participants to make informed decisions. In this paper, a day-ahead and real time electricity market clearing model in the presence of stochastic wind energy sources is proposed to determine the cost of energy and reserve. In the modelling to capture all the possible deviation of wind energy, a scenario generation technique "Roulette Wheel Mechanism (RWM)" is applied, and to reduce the number of generated situations, the fast forward algorithm is used. The pool market clearing model with co-optimization of energy and reserve is modelled as a two-stage framework (day-ahead and real time) considering both the electricity market and power balance constraints. The operational and economic impact of integrating wind energy on the system operation is investigated by considering different factors like consumer willingness, economic loss due to wind spillage, penetration and uncertainty level of the wind energy, turbine location and network congestion. The effectiveness of the proposed model has been investigated on the standard PJM-5 bus system and simulated in GAMS and MATLAB.