Valuing Uncertainties in Wind Generation: An Agent-Based Optimization Approach

Existing practice manages renewable uncertainty in the quantity domain: the system operator restricts how much uncertain power a resource may offer. This paper instead considers uncertainty in the price domain, where more uncertain power is offered at a higher price. We demonstrate system-level impacts on a modified RTS-GMLC system in which wind generators build market offers valuing their uncertainty over a scenario set of day-ahead production forecasts, and compare against a dispatch method that offers wind at zero marginal price with forecast-percentile restrictions.