Abstract: “In the emerging electricity markets, a suitable trading mechanism is required to accommodate the wind power generations to recover their costs. This paper presents various market strategies in a competitive power market having wind generators. Till now, wind power trading studies has been done on the basis of fixed demand. In real life scenario fixed demand doesn't exist. In this paper a practical approach is proposed by taking variable demand. Market clearing price has been analyzed in both supply side and demand side bidding scenarios for bid trading models. Wind power can also play a vital role in ancillary services and mitigating the market power, but their costs must be recovered for successful promotion. Trading with wind power must be transparent for free and fair trade of electricity. An MCP index has been modeled to give indication of the MCP variations. This paper can be a guideline for the policy makers and Market Operators to promote the wind power with system transparency.”

Keywords: Competitive power market, Bidding, Market