Title :
Price-taker bidding strategy under price uncertainty
Author :
Conejo, A.J. ; Nogales, F.J. ; Arroyo, J.M.
Abstract :
This paper provides a framework to obtain the optimal bidding strategy of a price-taker producer. An appropriate forecasting tool is used to estimate the probability density functions of next-day hourly market-clearing prices. This probabilistic information is used to formulate a self-scheduling profit maximization problem that is solved taking advantage of its particular structure. The solution of this problem allows deriving a simple yet informed bidding rule. Results from a realistic case study are discussed in detail.
Keywords :
power markets; scheduling; strategic planning; technological forecasting; forecasting tool; market-clearing prices; pool-based electricity market; price-taker bidding strategy; probabilistic information; probability density functions; self-scheduling profit maximization problem; Electricity supply industry; Probability density function; Uncertainty;
Conference_Titel :
Power Engineering Society General Meeting, 2003, IEEE
Print_ISBN :
0-7803-7989-6
DOI :
10.1109/PES.2003.1270446
