Asset and Risk Management for a Wind Farm in a Competitive Electricity Market

In a competitive electricity market, a GENCO which has wind generation, is able to control and minimize its trading risks by participating in different markets such as spot marketand bilateral contracts. Wind generation may have a high level of risk due to uncertainties in wind, energy price fluctuations andpenalties due to energy unbalancing. In this paper, we have focused on optimum bidding of wind generation using utilitytheory, considering the risks which exist in wind generation. Weproposed a new method to find the optimum bidding amount in different markets in such a way that maximum benefit andminimum risk could be achievable, simultaneously. We have used historical data of the Spain electricity market (which is availableonline) to show effectiveness of the proposed method