Designing rational market mechanisms and allowing wind power to bid in energy and frequency regulation markets will relieve the frequency regulation pressure of the system and increase the market revenue of wind power. The performance of regulation resources and the “paid-by-performance” mechanism are the key features of the frequency regulation market. Meanwhile

the frequency regulation performance index(FRPI)of wind power is dynamically determined by its bidding strategy and output. Therefore

this paper studies the optimal strategy for wind power bidding in energy and frequency regulation markets. Moreover

a market mechanism taking FRPI and the deviation penalty into account is proposed. Then an evaluation approach is developed for modelling FRPI of wind power. The maximum revenue model under the proposed market mechanism is developed. The solving method of the optimal strategy for wind power bidding in energy and frequency regulation markets is given. The case study results reveal that the frequency regulation performance revenue is important to incent the wind power to provide frequency regulation service

and precisely estimating regulation performance index in bidding decision-making is good for the expected revenue of wind power to be increased. This work is supported by National Natural Science Foundation of China(No. 51537005)and State Grid Corporation of China(No. 5201011400LV).