A Bi-level Stochastic-Robust Optimal Bidding Model of Wind-Storage System in Spot Markets Considering Internal and External Uncertainties

Developing effective bidding strategies in electricity spot markets is crucial for wind-storage systems (WSS) to improve profits and mitigate risk. During real operations, the bidding strategies of WSS are significantly affected by external uncertainties and internal uncertainties. However, some exi...

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Main Authors: Haowen Xu, Minglei Bao, Xun Yao, Xiaocong Sun, Yi Ding, Zhenglin Yang
Format: Article
Language:English
Published: Elsevier 2025-06-01
Series:International Journal of Electrical Power & Energy Systems
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Online Access:http://www.sciencedirect.com/science/article/pii/S0142061525001425
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author Haowen Xu
Minglei Bao
Xun Yao
Xiaocong Sun
Yi Ding
Zhenglin Yang
author_facet Haowen Xu
Minglei Bao
Xun Yao
Xiaocong Sun
Yi Ding
Zhenglin Yang
author_sort Haowen Xu
collection DOAJ
description Developing effective bidding strategies in electricity spot markets is crucial for wind-storage systems (WSS) to improve profits and mitigate risk. During real operations, the bidding strategies of WSS are significantly affected by external uncertainties and internal uncertainties. However, some existing studies only consider a single influencing factor or fail to account for the interaction between the market and participants. To address this problem, a stochastic-robust optimal bidding model (OBM) of WSS considering the combined impacts of external and internal uncertainties is proposed. The proposed model is structured as a bi-level optimization problem to reflect the interaction between WSS bidding and day-ahead market clearing. At the upper level, the bidding strategy of WSS is developed based on the market clearing results by using the stochastic-robust method to consider uncertainties. In the lower level, the clearing process of the day-ahead market is modeled to determine the clearing market price and quantity. To improve computational feasibility and robustness, the modified Column-and-Constraint Generation (C&CG) algorithm is applied to solve the multi-scenario problem efficiently. To validate the effectiveness and practicality of the proposed model, the paper conducts tests on the IEEE 118-bus system and a real-world large-scale system. Taking the IEEE 118-bus system as an example, compared to traditional methods, the proposed approach enables the WSS to achieve a 12% increase in average revenue and a 12.3% improvement in CVaR, indicating higher revenue with lower risk. The computation times of these two test systems are 20 min and 48 min, which can meet the requirements of practical day-ahead market operations.
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spelling doaj-art-8ff433bd809343fc95f855da90c060ca2025-08-20T03:03:37ZengElsevierInternational Journal of Electrical Power & Energy Systems0142-06152025-06-0116711059110.1016/j.ijepes.2025.110591A Bi-level Stochastic-Robust Optimal Bidding Model of Wind-Storage System in Spot Markets Considering Internal and External UncertaintiesHaowen Xu0Minglei Bao1Xun Yao2Xiaocong Sun3Yi Ding4Zhenglin Yang5College of Electrical Engineering, Zhejiang University, No. 38 Zheda Road, Hangzhou, 310027, Zhejiang, ChinaCollege of Electrical Engineering, Zhejiang University, No. 38 Zheda Road, Hangzhou, 310027, Zhejiang, China; Corresponding author.State Grid Gansu Electric Power Company, No. 8 Beibinhe East Road, Lanzhou, 730000, Gansu, ChinaCollege of Electrical Engineering, Zhejiang University, No. 38 Zheda Road, Hangzhou, 310027, Zhejiang, ChinaCollege of Electrical Engineering, Zhejiang University, No. 38 Zheda Road, Hangzhou, 310027, Zhejiang, ChinaChina Electric Power Research Institute, No. 8 Nanrui Road, Nanjing, 210037, Jiangsu, ChinaDeveloping effective bidding strategies in electricity spot markets is crucial for wind-storage systems (WSS) to improve profits and mitigate risk. During real operations, the bidding strategies of WSS are significantly affected by external uncertainties and internal uncertainties. However, some existing studies only consider a single influencing factor or fail to account for the interaction between the market and participants. To address this problem, a stochastic-robust optimal bidding model (OBM) of WSS considering the combined impacts of external and internal uncertainties is proposed. The proposed model is structured as a bi-level optimization problem to reflect the interaction between WSS bidding and day-ahead market clearing. At the upper level, the bidding strategy of WSS is developed based on the market clearing results by using the stochastic-robust method to consider uncertainties. In the lower level, the clearing process of the day-ahead market is modeled to determine the clearing market price and quantity. To improve computational feasibility and robustness, the modified Column-and-Constraint Generation (C&CG) algorithm is applied to solve the multi-scenario problem efficiently. To validate the effectiveness and practicality of the proposed model, the paper conducts tests on the IEEE 118-bus system and a real-world large-scale system. Taking the IEEE 118-bus system as an example, compared to traditional methods, the proposed approach enables the WSS to achieve a 12% increase in average revenue and a 12.3% improvement in CVaR, indicating higher revenue with lower risk. The computation times of these two test systems are 20 min and 48 min, which can meet the requirements of practical day-ahead market operations.http://www.sciencedirect.com/science/article/pii/S0142061525001425Wind-storage systemStochastic-robust optimizationOptimal bidding modelInternal and external uncertaintiesElectricity market clearing
spellingShingle Haowen Xu
Minglei Bao
Xun Yao
Xiaocong Sun
Yi Ding
Zhenglin Yang
A Bi-level Stochastic-Robust Optimal Bidding Model of Wind-Storage System in Spot Markets Considering Internal and External Uncertainties
International Journal of Electrical Power & Energy Systems
Wind-storage system
Stochastic-robust optimization
Optimal bidding model
Internal and external uncertainties
Electricity market clearing
title A Bi-level Stochastic-Robust Optimal Bidding Model of Wind-Storage System in Spot Markets Considering Internal and External Uncertainties
title_full A Bi-level Stochastic-Robust Optimal Bidding Model of Wind-Storage System in Spot Markets Considering Internal and External Uncertainties
title_fullStr A Bi-level Stochastic-Robust Optimal Bidding Model of Wind-Storage System in Spot Markets Considering Internal and External Uncertainties
title_full_unstemmed A Bi-level Stochastic-Robust Optimal Bidding Model of Wind-Storage System in Spot Markets Considering Internal and External Uncertainties
title_short A Bi-level Stochastic-Robust Optimal Bidding Model of Wind-Storage System in Spot Markets Considering Internal and External Uncertainties
title_sort bi level stochastic robust optimal bidding model of wind storage system in spot markets considering internal and external uncertainties
topic Wind-storage system
Stochastic-robust optimization
Optimal bidding model
Internal and external uncertainties
Electricity market clearing
url http://www.sciencedirect.com/science/article/pii/S0142061525001425
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