Abstract
The increasing penetration of wind power, alongside other variable renewable energy (VRE) resources, offers significant potential for decarbonizing power grids. This potential is particularly promising in Norway, where the power system is heavily reliant on hydropower and offers substantial opportunities for wind energy development. However, effectively and reliably operating VRE resources poses significant challenges due to their inherent uncertainty. The intermittent and unpredictable nature of VRE resources presents both technical and economic obstacles to their seamless integration into power systems. To address these challenges, this study focuses on optimizing the scheduling of wind power for a single time step, while considering the uncertainty associated with wind generation forecasts and its impact on producer profitability. The primary objective is to expand an existing stochastic hydropower scheduling model and create an integrated wind-hydro scheduling tool that captures the dynamic interactions between these two power systems. The study's findings indicate that higher up-regulation prices lead to lower bids from wind producers, as they seek to avoid penalties resulting from overestimating their production.
