Demand responsive bidding strategy of a buyer in uniform price electricity market

In double sided electricity markets, a large buyer, such as an industrial customer, who can reschedule its production plan, may develop strategic bid by shifting its demand from high price period to low price period. Based on this concept, a new optimization formulation has been proposed to develop bidding strategy of such buyers considering demand shifting. Since the bidding strategy of the buyer depends upon the market clearing price, the proposed optimization problem is formulated as a stochastic linear problem, comprising of two sub-problems. The first sub-problem represents the market clearing process of System Operator, while the second sub-problem aims at saving the purchase cost. The optimal bidding strategy has been obtained by solving these two sub-problems iteratively. The effectiveness of the proposed method has been tested on a 5-bus system. Results obtained with the demand shifting based bidding strategy have been compared with those obtained without demand shifting.