A New Solution Approach for Supply Function Equilibrium-based Bidding Strategy in Electricity Markets

Hematabadi, Ahmad Azadi; Foroud, Asghar Akbari

doi:10.24200/sci.2017.4360

Cited by 2 publications

(1 citation statement)

References 26 publications

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“…In the inner level, ISO cleared the market to maximize social welfare. In the outer level, each generation company tried to maximize its individual welfare [24]. Dai, Y.M.…”

Section: Introductionmentioning

confidence: 99%

Electricity Purchase Optimization Decision Based on Data Mining and Bayesian Game

et al. 2018

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The openness of the electricity retail market results in the power retailers facing fierce competition in the market. This article aims to analyze the electricity purchase optimization decision-making of each power retailer with the background of the big data era. First, in order to guide the power retailer to make a purchase of electricity, this paper considers the users' historical electricity consumption data and a comprehensive consideration of multiple factors, then uses the wavelet neural network (WNN) model based on "meteorological similarity day (MSD)" to forecast the user load demand. Second, in order to guide the quotation of the power retailer, this paper considers the multiple factors affecting the electricity price to cluster the sample set, and establishes a Genetic algorithm-back propagation (GA-BP) neural network model based on fuzzy clustering (FC) to predict the short-term market clearing price (MCP). Thirdly, based on Sealed-bid Auction (SA) in game theory, a Bayesian Game Model (BGM) of the power retailer's bidding strategy is constructed, and the optimal bidding strategy is obtained by obtaining the Bayesian Nash Equilibrium (BNE) under different probability distributions. Finally, a practical example is proposed to prove that the model and method can provide an effective reference for the decision-making optimization of the sales company.In 2014 alone, the power trade with EEX reached an astonishing 1952 tWh. The Pennsylvania New Jersey Maryland (PJM) exchange in the USA is currently responsible for the operation and management of power systems in 13 U.S. states and the District of Columbia. As a regional Independent system operation (ISO), PJM is responsible for centrally dispatching the largest and most complex power control area in the USA and ranks third in the world in scale. The PJM controlled area accounts for 8.7% of the total population (about 23 million), load 7.5%, installed capacity of 8% (about 58,698 MW), and transmission lines up to more than 12,800 kilometers [4]. The effective application of power big data for the profitability and control of power companies has a high value. Some experts have said that whenever the data utilization increases by 10%, it can cause the power grid to increase profits by 20% to 49%. In the face of a huge power system, data needs to be processed quickly, hence data mining technology came into being, and will play a key role in supporting the sales company to participate in market competition.Power-selling is the pillar business of the retailer. As an intermediate link between production and use, the power retailer needs to analyze the users' needs and predict the user's load demand based on the users' historical electricity consumption data, considering industry, meteorology, regional economy, related industries, and other factors, so that this can guide the retailer to develop electricity purchase. In recent years, numerous scholars have put forward many effective load forecasting methods. Vilar, J. et al. provided two procedures to obtain predi...

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“…In the inner level, ISO cleared the market to maximize social welfare. In the outer level, each generation company tried to maximize its individual welfare [24]. Dai, Y.M.…”

Section: Introductionmentioning

confidence: 99%