Innovative generation scheduling algorithm for multi bilateral electricity market

In a market based on bilateral contracts, a new fundamental function that the new players have to perform is the scheduling of the portfolio of units owned or operated by the players. The main objective for the market participants is the maximization of the profit. The approach proposed in this paper not only models the physical characteristics of the generation units, but it also models obligations, contracts and logistics in order to capture all the profit possibilities during the scheduling process. Since several physical and financial constraints have to be evaluated by the market participants in the scheduling process, the problem is formulated as a constrained optimization problem. The solution is approached using a combination of linear programming and dynamic programming.