We investigate the management of a merchant wind energy farm co-located with a grid-level storage facility and connected to a market through a transmission line. We formulate this problem as a Markov decision process (MDP) with stochastic wind speed and electricity prices. Consistent with most...

Merchant energy trading companies operate energy conversion facilities and infrastructure via direct or contractual ownership. Portfolio-based control algorithms are a real option approach that practitioners use to manage these assets. To avoid potential model error, this approach represents the...