Coordinated Bidding Strategy of Wind Farms and Power-to-Gas Facilities Using a Cooperative Game Approach.

Power-to-gas (P2G) technology is an effective way to provide additional flexibility to electricity systems with high penetration of renewable energy. Effective P2G bidding strategies in electricity markets can bring in arbitrage opportunities. This article proposes a coordinated bidding strategy for wind farms and P2G facilities using a cooperative game approach. A coordination framework for optimizing the profit of wind farms and P2G facilities is presented, in which wind power participates in day-ahead, real-time and reserve markets, and the P2G facilities participate in day-ahead and reserve markets for arbitrage. Wind farms strategically purchase reserve to avoid high imbalance penalties. As a coalition, wind farms can provide energy to P2G facilities and receive reserve capacity in return. The coordinated bidding strategy is modeled on stochastic programming to maximize the expected joint profit of wind farms and P2G facilities. Nucleolus and Shapley-value based methods are proposed to allocate profits to each player in the coalition. Numerical results based on real world market data demonstrate that the proposed bidding strategy can increase the profits of both wind farms and P2G facilities. Strategically purchasing reserve can reduce the imbalance penalties of wind farms, and participating in reserve markets of P2G facilities can increase profit. [ABSTRACT FROM AUTHOR]