Bidding strategies in electricity markets

Mielczarski, W.; Michalik, Grazyna; Widjaja, Moeljono

doi:10.1109/pica.1999.779387

Cited by 36 publications

(11 citation statements)

References 0 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…To exert market power enable to maximize profit, a generator uses optimal bidding strategies. The optimal bidding strategies could achieve in three ways [3]. 1) Estimate the Market Clearing Price (MCP): It is the most efficiency way to make optimal bidding strategies if a generating company could accurately estimate the MCP.…”

Section: Strategic Biddingmentioning

confidence: 99%

Game Theory Application and Strategic Bidding in Electricity Supply Market

Wang¹,

Lo²

2016

WJET

View full text Add to dashboard Cite

This paper introduced the application of game theory in electricity power market. Moreover, the electricity pool model and the merit order dispatch method was introduced. In pool mode, participants are trying to maximize their benefit via competition with each other. Hence the market can be regarded as a non-cooperative game, especially, the electrical supply competition. Players (generators) could use strategic bidding to occupy advantages in competition. The bidding strategies of generators in electricity pool model were researched via build a 3-generator competition model. Moreover, Nash Equilibrium idea was used to explore generator's optimal bidding strategy. The results show when players are in Nash Equilibrium; thestrategy is their optimal bidding strategy.

show abstract

Section: Strategic Biddingmentioning

confidence: 99%

Game Theory Application and Strategic Bidding in Electricity Supply Market

Wang¹,

Lo²

2016

WJET

View full text Add to dashboard Cite

show abstract

“…To be specific, we shall demonstrate how self-scheduling constraints, risk management, and the interaction of the energy and reserve markets affect offers though (9) and (10), (15), and (16). For simplicity, the focus will be on energy offers, as reserve offers can be similarly analyzed.…”

Section: F Analyzing Self-scheduling Market Interaction and Risk Mmentioning

confidence: 99%

“…Its offering strategies, however, are coupled across hours through intermediate level multiples , , and in view of the pond limits and dynamics as shown in (15). A decision at one hour affects the pond level (4), thus affects multiplies , , and afterwards through the iterative multiplier updating process.…”

Section: F Analyzing Self-scheduling Market Interaction and Risk Mmentioning

confidence: 99%

“…A decision at one hour affects the pond level (4), thus affects multiplies , , and afterwards through the iterative multiplier updating process. These multipliers affect the decisions at previous hours when optimizing the stage-wise cost (15) in stochastic dynamic programming. If the lower pond level constraint cannot be satisfied at hour leading to a high , then the unit has to either generate less or pump more before that hour.…”

Section: F Analyzing Self-scheduling Market Interaction and Risk Mmentioning

confidence: 99%

“…0885-8950/04$20.00 © 2004 IEEE Efforts have been made to address bidding problems ( [1], [4]- [8], [11], [13]- [15], [19], [21]). Under the assumption that the probabilistic distributions of competitors' offering prices are known, an optimal offering strategy for a single power block at a particular hour is derived by ignoring intertemporal unit constraints in [11].…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Optimal Integrated Generation Bidding and Scheduling With Risk Management Under a Deregulated Power Market

Ni¹,

Luh

Rourke³

2004

IEEE Trans. Power Syst.

127

View full text Add to dashboard Cite

Abstract-In the deregulated power industry, a generation company (GenCo) sells energy and ancillary services primarily through auctions in a daily market. Developing effective strategies to optimize hourly offer curves for a hydrothermal power system to maximize profits has been one of the most challenging and important tasks for a GenCo. This paper presents an integrated bidding and scheduling algorithm with risk management under a deregulated market. A stochastic mixed-integer optimization formulation having a separable structure with respect to individual units is first established. A method combining Lagrangian relaxation and stochastic dynamic programming is then presented to select hourly offer curves for both energy and reserve markets. In view that pumped-storage units provide significant energy and reserve at generating and pumping, the offering strategies are specially highlighted in this paper. Numerical testing based on an 11-unit system with a major pumped-storage unit in the New England market shows that the algorithm is computationally efficient, and effective energy and reserve offer curves are obtained in 4-5 min on a 600-MHz Pentium III PC. The risk management method significantly reduces profit variances and, thus, bidding risks.

show abstract

A novel approach to evaluate the variation of power producer's bidding curves based on dimensional reduction model

Zhou

Chen

Xiong

et al. 2007

Int Trans Elec Energy Syst

View full text Add to dashboard Cite

SUMMARYA dimension reduction model is proposed in this paper. The proposed model can be used to transform the unit's biding curve of power producers of a market into a one-dimensional feature vector, which reflects the changes of the bidding curve quite conformably. As a result, the unit's biding curves can be classified by using cluster analysis. Through clustering calculations of the bidding curves of Zhejiang electricity market, it is shown that the bidding curve can be classified accurately and efficiently by using a 20-segment model and the squared sum of deviations.

show abstract

Bidding strategies in electricity markets

Cited by 36 publications

References 0 publications

Game Theory Application and Strategic Bidding in Electricity Supply Market

Game Theory Application and Strategic Bidding in Electricity Supply Market

Optimal Integrated Generation Bidding and Scheduling With Risk Management Under a Deregulated Power Market

A novel approach to evaluate the variation of power producer's bidding curves based on dimensional reduction model

Contact Info

Product

Resources

About