A study of basic bidding strategy in clearing pricing auctions

Hao, Shangyou

doi:10.1109/59.871721

Cited by 86 publications

(5 citation statements)

References 6 publications

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“…Supply function model was utilized to analyze the behavior of generators with future contract in [3]. In [4], the bidding process was investigated in an auction model; the result shows that IPPs have incentives to bid above their cost. In [5], [6], game theory was applied to analyze and design the optimal bidding strategy for IPPs.…”

Section: Introductionmentioning

confidence: 99%

Analysis on the Impact of Cooperation Between Independent Power Producer and the Grid Company in Day-Ahead Electricity Market

Zhou

et al. 2009

2009 Asia-Pacific Power and Energy Engineering Conference

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The cooperation between independent power producer (IPP) and the grid company (GC) in day-ahead bidding market are analyzed to identify its impact on different market agents. The profit models of market agents both with and without the cooperation of IPP and GC are constructed. Necessary conditions for cooperation with the consideration of maximum capacity constraint are derived, and then the impacts of their cooperation are analyzed to conduct corresponding conclusions. A numerical example is also provided to prove these conclusions.

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Section: Introductionmentioning

confidence: 99%

Analysis on the Impact of Cooperation Between Independent Power Producer and the Grid Company in Day-Ahead Electricity Market

Zhou

et al. 2009

2009 Asia-Pacific Power and Energy Engineering Conference

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“…Many strategic bidding models have been reported in recent years, which can be grouped into three main categories as follows: (i) estimating the Market Clearing Price (MCP): Bid price is slightly lower than the estimated price [2,3] . (ii) game theories: base either on benefit matrix or imperfectly competitive game model [4,6] .…”

Section: Introductionmentioning

confidence: 99%

Optimal Bidding Strategies for Generation Companies in a Day-Ahead Electricity Market with Risk Management Taken into Account

Hussein¹

2009

American Journal of Engineering and Applied Sciences

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Problem statement: In a competitive electricity market with limited number of producers, Generation Companies (Gencos) is facing an oligopoly market rather than a perfect competition. Under oligopoly market environment, each Genco may increase its own profit through a favorable bidding strategy. The objective of a Genco is to maximize its profit and minimize the associated risk. In order to achieve this goal, it is necessary and important for the Genco to make optimal bidding strategies with risk management before bidding into spot market to get an expected high profit, since spot prices are substantially volatile. This study propose a method to build optimal bidding strategies in a day-ahead electricity market with incomplete information and considering both risk management and unit commitment. Approach: The proposed methodology employs the Monte Carlo simulation for modeling a risk management and a strategic behavior of rival. A probability density function (pdf), Value at Risk (VaR) and Monte Carlo simulation used to build optimal bidding strategies for a Genco. Results: The result of the proposed method shows that a Genco can build optimal bidding strategies to maximize expected total profit considering unit commitment and risk management. The Genco controls the risk by setting the confidence level. If the Genco increase the confidence level, the expected total VaR of profit decrease. Conclusions/Recommendations: The proposed method for building optimal bidding strategies in a day-ahead electricity market to maximize expected total profit considering unit commitment and risk management is helpful for a Genco to make a decision to submit bidding to the Independent System Operator (ISO)

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Section: Introductionmentioning

confidence: 99%

Optimal Bidding Strategies for Generation Companies in a Day-Ahead Electricity Market with Risk Management Taken into Account

Tsuji¹

2009

American J. of Engineering and Applied Sciences

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Problem statement: In a competitive electricity market with limited number of producers, Generation Companies (Gencos) is facing an oligopoly market rather than a perfect competition. Under oligopoly market environment, each Genco may increase its own profit through a favorable bidding strategy. The objective of a Genco is to maximize its profit and minimize the associated risk. In order to achieve this goal, it is necessary and important for the Genco to make optimal bidding strategies with risk management before bidding into spot market to get an expected high profit, since spot prices are substantially volatile. This study propose a method to build optimal bidding strategies in a dayahead electricity market with incomplete information and considering both risk management and unit commitment. Approach: The proposed methodology employs the Monte Carlo simulation for modeling a risk management and a strategic behavior of rival. A probability density function (pdf), Value at Risk (VaR) and Monte Carlo simulation used to build optimal bidding strategies for a Genco. Results: The result of the proposed method shows that a Genco can build optimal bidding strategies to maximize expected total profit considering unit commitment and risk management. The Genco controls the risk by setting the confidence level. If the Genco increase the confidence level, the expected total VaR of profit decrease. Conclusions/Recommendations: The proposed method for building optimal bidding strategies in a day-ahead electricity market to maximize expected total profit considering unit commitment and risk management is helpful for a Genco to make a decision to submit bidding to the Independent System Operator (ISO).

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A study of basic bidding strategy in clearing pricing auctions

Cited by 86 publications

References 6 publications

Analysis on the Impact of Cooperation Between Independent Power Producer and the Grid Company in Day-Ahead Electricity Market

Analysis on the Impact of Cooperation Between Independent Power Producer and the Grid Company in Day-Ahead Electricity Market

Optimal Bidding Strategies for Generation Companies in a Day-Ahead Electricity Market with Risk Management Taken into Account

Optimal Bidding Strategies for Generation Companies in a Day-Ahead Electricity Market with Risk Management Taken into Account

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