IGDT based risk-constrained strategic bidding of GenCos considering bilateral contracts

Author

Kazemi, Mostafa ; Mohammadi-Ivatloo, Behnam ; Ehsan, Mehdi

Author_Institution

Dept. of Electr. Eng., Sharif Univ. of Technol., Tehran, Iran

fYear

2013

fDate

14-16 May 2013

Firstpage

1

Lastpage

6

Abstract

A new risk-constrained bidding curve construction method is presented in this paper. A Day-ahead energy market has been chosen for competition of GenCos and the Information Gap Decision Theory (IGDT) is used for modelling the Day-ahead market price uncertainty and its corresponding risk. The bilateral contracts of the GenCo are also considered in the proposed framework. A Bi-level optimization problem is incorporated in the proposed method to guarantee a pre-specified level of revenue. The proposed IGDT based method constructs the non-decreasing bidding curve while dispatching units based on the uncertain forecasted prices of the next-day market. The verification of the proposed method is demonstrated by simulation of a GenCo with 5 thermal units in various day-ahead markets.

Keywords

contracts; decision theory; economic forecasting; load dispatching; mathematical programming; power markets; pricing; risk management; tendering; GenCos; IGDT based risk-constrained strategic bidding; bilateral contracts; bilevel optimization problem; day-ahead energy market; day-ahead market price uncertainty; dispatching units; information gap decision theory; nondecreasing bidding curve; risk-constrained bidding curve construction method; thermal units; uncertain price forecasting; Contracts; Educational institutions; Equations; Mathematical model; Optimization; Robustness; Uncertainty;

fLanguage

English

Publisher

ieee

Conference_Titel

Electrical Engineering (ICEE), 2013 21st Iranian Conference on

Conference_Location

Mashhad

Type

conf

DOI

10.1109/IranianCEE.2013.6599677

Filename

6599677