Strategic Offering of a Wind Power Producer in Energy and Green Certificate Markets: a Stochastic Bilevel Approach

With the high penetration of renewable energy and the execution of renewable portfolio standards, it becomes urgent to analyze the behavior of a wind power producer (WPP) in energy and green certificate markets. To this end, we propose a strategic offering model for a WPP, aiming to analyze the impact of exercising market power on market clearing results and social welfare. Afterwards, the model is transformed into stochastic mathematical programming with equilibrium constraints (MPEC) and eventually mixed integer linear programming (MILP), which can be solved by off-the-shelf solvers. Finally, case studies are carried out on a small test system, illustrating that the market clearing price might increase compared with the perfect competition situation, and the expected profit of WPP increases at the expense of market efficiency. Besides, we analyse the impact of line congestion on the revenue of WPP.