Proposal of Block Bidding for Large-Scale Wind Power Energy

Abstract It is necessary for power systems to provide flexible power to balance the fluctuation and intermittency of wind power. For the large-scale and central-integrated wind generation (such as that in China), the required flexible power may be very significant and expensive. In market environment, it is important to design a proper market mechanism and price signal which can promote conventional power and load demand to integrate wind power and gain corresponding profit. Firstly, the paper analyzes the current economy and dispatch policy for wind power in China. Then, a Block Bidding mode for wind power is presented. Unlike Timely Bidding mode that power is auctioned hourly by hourly, for Block Bidding the wind power energy is divided into different energy block. And these blocks are auctioned by conventional power resources and load demands. The Block Bidding mode has some advantages: 1) subdivides wind power by energy quality, and then the value of different parts can be revealed; 2) provides incentive for conventional power resource and load demand to integrate wind power; 3) is convenient for trading and dispatching wind power. Finally, a simple numerical case is given to illustrate the validity of Block Bidding mode.