Wind farms participation in electricity markets considering uncertainties

Rising global temperature and environmental pollution as well as the demand for energy consumption have made finding new and affordable clean energy resources a serious challenge for governments. A possible solution could be renewable resources such as solar, wind or geothermal energies. Restructuring and deregulation have provided a competitive environment which makes analysis of these new energy sources necessary. Wind farms have been receiving more attention from governments because of their noticeable generation capability. The stochastic nature of the wind inflicts uncertainty on the output generation of wind farms which then causes some limitations for the participation of these farms in the electricity market. Thus, in this paper the effects of uncertainty in predicting the wind farm's power on locational marginal price in the market have been studied. According to the advantages and disadvantages of wind farm's power uncertainties, a procedure to maximize the social welfare is presented. The studies-have been done on an 8-bus network for 24 h in a day-ahead electricity market. To do this, the farm power is predicted using Neural Network and Wavelet Transform and its uncertainties are calculated using the asymmetric Quantile Regression method. (C) 2016 Elsevier Ltd. All rights reserved.