Short‐term strategies for Dutch wind power producers to reduce imbalance costs

The paper assesses bidding strategies for a wind power producer in the Netherlands. To this end, a three‐stage stochastic optimization framework is used, maximizing wind power producer's profit using the day‐ahead and cross‐border intraday market, taking into account available interconnection capacity. Results show that the wind power producer can increase its profits by trading on the intraday market and – under certain imbalance prices – by intentionally creating imbalances. It has been considered uncertainties about prices, power forecast and interconnection capacity at the day‐ahead and intraday timeframes.