Winning bid price in wind power generation industry

How are optimal bids for wind power producers determined?

Optimal bids for the wind power producer were determined based on the methods described in Sections 3.8.1 Point forecast bidding, 3.8.2 Perfect forecast bidding, 3.8.3 Moving average correlation bidding, 3.8.4 SCOPES (one price system), 3.8.5 MIMICS (two price system). Each bid was generated in a realistic manner under real-world constraints.

What is the best bidding strategy for wind power?

Simple bidding strategies such as point forecast or perfect forecast are pitted against two probabilistic bidding algorithms trained on historical market data and designed to account for the effects of wind power production levels on the market.

How much does a wind farm cost?

Two sponsors, Northland Power & YuShan Energy and Ørsted, and four wind farms were selected, with a bidding price ranging from NT$2224.5/MWh (€65/MWh) to NT$2548.1/MWh (€75/MWh) and the average winning bid at NT$2386/MWh (around €63/MWh), marking an almost 60% reduction from the FIT awarded in 2018.

Do auctioned offshore wind energy farms need revenue stabilisation?

Auctions in each jurisdiction have evolved and tend to become more exposed to market price risks over time. Less mature markets are more prone to make use of lower-risk designs. Still, some form of revenue stabilisation is employed for all auctioned offshore wind energy farms analysed here, regardless of the specific policy choices.

How does wind power production affect wind farm prices?

This effect of wind power production on prices affects the optimal bidding strategy for a wind farm producer. This change in bidding strategy, however, can also affect the system balance, as wind producer bids may deviate from the expected wind production, possibly leading to increased costs of balancing supply and demand. 1.2.

What are price and non-price criteria for offshore wind projects?

Tenders can include price and non-price criteria, the latter of which is the focus of this article. Categories of Non-price Criteria Non-price criteria are a way for countries to drive offshore wind developers to give greater consideration to the qualitative parameters of offshore wind projects, such as environmental and social parameters.