Optimal Bidding Strategy for a Generation Company Under Price Uncertainty

Haifeng Zhang

Abstract

Considering market clearing price uncertainty and based on mixed-integer programming and stochastic programming, a bidding model of bidding output independent on scenario for a thermal power producer is presented. This model can give nondecreasing bidding curves to meet the market requirements. Simulations for a generation company’s bidding behavior are performed using the model. Results show that the proposed model can provide adequate information to bidding curves.

Keywords

electricity markets; bidding strategy; mixed-integer programming; stochastic programming; price uncertainty.

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Cites this article as

[Haifeng Zhang (2015), Optimal Bidding Strategy for a Generation Company Under Price Uncertainty, International Journal of Innovative Research in Engineering & Management (IJIREM), Vol-2, Issue-6, Page No-15-19], (ISSN 2347 - 5552). www.ijirem.org