A new optimal bidding strategy in power market

Author

Tang, Jing ; Lin, Jianxin ; Ding, Qiaolin ; Zheng, Yan

Author_Institution

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

fYear

2005

fDate

2005

Firstpage

1

Lastpage

5

Abstract

Nowadays, power generation companies are eager to build their appropriate bidding strategies for maximizing their profit in the new deregulating power market. In this paper, 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. A given participant would select the most interesting prices related to its attitude depend 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-cleaning prices is required shows its superiority to others

Keywords

economic forecasting; optimisation; power generation economics; power markets; pricing; risk analysis; statistical distributions; confidence level; forecasted demand; market-cleaning prices; optimal bidding strategy; optimization; power generation companies; power market; price probability distribution; risk aversion; Costs; Demand forecasting; Economic forecasting; Environmental economics; Power generation economics; Power markets; Predictive models; Probability distribution; Random variables; State estimation; bidding strategy; confidence level; forecasted price; probability distribution; risk aversion; variable cost;

fLanguage

English

Publisher

ieee

Conference_Titel

Transmission and Distribution Conference and Exhibition: Asia and Pacific, 2005 IEEE/PES

Conference_Location

Dalian

Print_ISBN

0-7803-9114-4

Type

conf

DOI

10.1109/TDC.2005.1547066

Filename

1547066