Optimal Bidding Strategies for Power Suppliers with Transmission Congestion Taken into Account

Under the inadequacy competitive power market environment, each power supplier may gain more profits through bidding strategies. A two-level stochastic programming based optimal algorithm was presented for this bidding problem. In the main optimal level, the supplier decides his bidding strategies according to the largest profits of his own; in the sub optimal level, the system dispatcher decides the output and nodal price for each supplier based on the maximum social profits. Moreover, the notion of individual that one power supplier controls several generating units is considered here. A modified method with the combination of genetic algorithm and Monte-Carlo simulation was used to solve this optimal problem. Ultimately, numerical examples were employed to demonstrate the essential features of the developed model and methods.