Coordinated bidding and trading strategy for wind power and thermostatic load in a novel market framework

Abstract

Thanks to the uncertainty and fluctuation of wind power, the mismatch between the supply and load is increasing. Consequently, wind power should be responsible for the imbalance caused by its volatility. Meanwhile, thermostatic load (TCL) is becoming a promising regulation capacity provider with the development of demand side technology. This paper proposes a combined energy and regulation market framework to encourage wind power to pay for the regulation market cost. And a cooperation framework is presented, in which wind power and two types of TCLs exchange energy and regulation capacity to obtain cooperation benefits. The asymmetric Nash bargaining (ANB) is applied to allocate cooperation profits among members. To ensure the autonomy of each member, a decentralized method based on ADMM is introduced. Case studies show that the proposed bidding and trading strategy can increase the profit of each member and lock more regulation capacity in day‐ahead stage, and the proposed allocation method can distribute cooperation profits fairly.