The pricing of contingent claims in the wholesale power market is a controversial topic. Important challenges come from the non-storability of electricity and the number of parameters that impact the market. We propose an equilibrium model based on the fundamentals of power generation. In a...

A compensation-based pricing scheme is a market clearing mechanism that may be applied when a uniform, linear pricing scheme cannot support equilibrium allocations in the auction markets. We analyze extensions of our previously proposed pricing scheme [14] to include various possible...

Generating companies (GENCOs) with wind farms always suffer from the variations of wind power and energy prices. The coordination of wind power with hydro units is an effective way for GENCOs to enhance the ability of wind power dispatch, increase profit, and reduce risk. However, GENCOs still...

For large wind farms, the unit combinatorial optimization research can improve the level of wind farm operation and increase the economic efficiency of wind farms. The blades, which not only account for 20% of the total wind turbine cost, but also have much influence on the wind turbine life,...

This paper presents the application of MINLP (mixed-integer nonlinear programming) approach for scheduling of a CHP (combined heat and power) plant in the day-ahead wholesale energy markets. This work employs first principles models to describe the nonlinear dynamics of a CHP plant and its...