Optimization of the Spanish market sequence by a price-taker generating firm

The Spanish electricity business, deregulated since January 1^st 1998, has been organized in two different types of markets: (a) the energy markets (which include the day-ahead electricity market and 6 intradaily markets) and (b) the ancillary services markets (comprising the secondary and tertiary reserve markets and the deviation management markets). A generating firm must decide the generation resources to be distributed within each of the mentioned markets. This work proposes a stochastic optimization model that decides the amount of resources to be distributed by a price-taker generating firm in each market of the generation business. The objective function maximizes the agent expected total profit. In addition, the model obtains the bid curves of the firm to be submitted to the hourly periods of each market. A case study illustrates the performance of the model proposed.