A new optimal bidding strategy based on risk aversion attitude of power market suppliers

Author

Ding, Qiaolin ; Tang, Jing ; Liu, Jianxin

Author_Institution

Dept. of Electr. Eng., North China Electr. Power Univ., Baoding

fYear

2005

fDate

Nov. 29 2005-Dec. 2 2005

Firstpage

1111

Abstract

This paper provides a framework to obtain some optimal strategies according to different risk analysis and decisions. An optimization process is used to find the optimal production for forecasted price and several boundary prices which are defined based on different confidence level of price probability distribution. Market participants would select their most interesting prices related to its attitude depends on its degree of risk aversion to construct the bidding strategy. The main contribution of this work is a methodology to find a bidding strategy. The new optimal bidding strategy composed of curves with optimal offer blocks where only information related to forecasted demand and market-clearing prices is required shows its superiority to others

Keywords

load forecasting; power markets; power system economics; pricing; probability; risk analysis; market-clearing prices; optimal bidding strategy; power market suppliers; price forecasting; price probability distribution; risk analysis; risk aversion attitude; Demand forecasting; Economic forecasting; Power markets; Power supplies; Probability distribution; Production; Risk analysis; Bidding strategy; confidence level; forecasted price; probability distribution; risk aversion; variable cost;

fLanguage

English

Publisher

ieee

Conference_Titel

Power Engineering Conference, 2005. IPEC 2005. The 7th International

Conference_Location

Singapore

Print_ISBN

981-05-5702-7

Type

conf

DOI

10.1109/IPEC.2005.207073

Filename

1627362