Optimal bidding of a profit-maximizing hydropower producer in day-ahead and real-time markets

This paper develops a price-driven optimal bidding strategy to day-ahead and real-time markets for a profit maximizer hydro power producer. The electricity prices in different market places are unknown when the bidding takes place. The optimal bidding problem is modeled as a multi-stage stochastic program considering the market prices continuously clearing nature. Specifically for that purpose rolling planning is applied, which allow re-forecasting and re-dispatching according to the arrival of new information. The results have shown that, there is a value for hydropower producer to participate in real-time market.