Strategic bidding for multiple price-maker hydroelectric producers

Steeger, Gregory; Rebennack, Steffen

doi:10.1080/0740817x.2014.1001928

Cited by 15 publications

(7 citation statements)

References 42 publications

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“…The net head H t,i is a function of the fore-bay water level Lu t, the tailrace water level L d t , and penstock head loss h loss t,i . The formulations of L u t , L d t , and h loss t,i are expressed in (14), (15), and(16), respectively. Constraint (17) defines the requirement on the fore-bay water level for the flood prevention in the flood season or ensuring highly efficient production in the dry season during a single day.…”

Section: B Self-scheduling Modelmentioning

confidence: 99%

“…The authors in [14] assumes that the PMHPs submit linear supply functions to the market operator and defines the intercept of the supply function as the decision variable to be optimized during the strategic bidding process. The researchers in [13], [15] focus on the market equilibrium by investigating the bidding behaviors; however, the methodology can't support hydro producers to devising practical offering strategies. The computational task is difficult and the market equilibrium is hard to be determined or even nonexistent.…”

Section: Introductionmentioning

confidence: 99%

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Optimal Offering Strategy of a Price-Maker Hydro Producer Considering the Effects of Crossing the Forbidden Zones

Zhang

Yan

2020

IEEE Access

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The phenomenon of crossing the forbidden zone is unavoidable and wasteful when scheduling the hydro units. In this paper, the effect of crossing the forbidden zone is taken into account using the strategic offering model to help the price-maker hydro producers (PMHPs) devise more economic offering strategies in this paper. This effect is economically quantified and formulated in the form of the mixed integer linear program (MILP) with the use of the big M method and the piecewise linear technique. Therefore, the effect of crossing the forbidden zone therefore can easily be incorporated into the strategic offering model. Based on the residual demand curve (RDC) scenarios, the strategic offering model, which consists of offering and self-scheduling models, is established according to the real-world data from the Three Gorges Project (TGP). The whole optimization model is then converted into the form of MILP formulations by properly discretizing the net head. A test case based on the TGP is presented, in which the strategic offering model is set as a comparable test while ignoring the effect of crossing the forbidden zone. The results provide insight on the offering strategy and physical system operations during a single day. The outcomes indicate that the model that incorporates the effect of crossing the forbidden zone will effectively prevent the crossing phenomenon from happening and that the proposed strategic offering model is more useful for assisting a PMHP in developing profitable offering strategy. INDEX TERMS Hydro producer, price-maker, offering strategies, self-scheduling, crossing the forbidden zone.

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Section: B Self-scheduling Modelmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Optimal Offering Strategy of a Price-Maker Hydro Producer Considering the Effects of Crossing the Forbidden Zones

Zhang

Yan

2020

IEEE Access

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“…Then, also Steeger and Rebennack (2015) study the bidding problem for multiple price-maker hydropower producers competing in a deregulated, bid-based market. Unlike Baslis and Bakirtzis (2011), their model exploits a Mixed Integer Linear Programming based on discrete functional parameters, highlighting the relevance of price-maker producers operating in the market.…”

Section: Introductionmentioning

confidence: 99%

The impact of Clean Spark Spread expectations on storage hydropower generation

Condemi

Mastroeni

Vellucci

2021

Decisions Econ Finan

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Storage hydropower generation plays a crucial role in the electric power system and energy transition because it is the most widespread power generation with low greenhouse gas emissions and, moreover, it is relatively cheap to ramp up and down. As a result, it provides flexibility to the grid and helps mitigate the short-term production uncertainty that affects most green energy technologies. However, using water in reservoirs represents an opportunity cost, which is related to the evolution of plant production capacity and production profitability. As the latter is related to a wide range of types of variables, in order to incorporate it in a large-scale prediction model it is important to select the variables that impact most on storage hydropower generation. In this paper, we investigate the impact of the variables influencing the choices of price maker producers, and, in particular we study the impact of Clean Spark Spread expectations on storage hydroelectric generation. In this connection, using entropy and machine learning tools, we present a method for embedding this expectations in a model to predict storage hydropower generation, showing that, for some time horizon, expectations on CSS have a greater impact than expectations on power prices. It is shown that, if the right mix of power price and CSS expectations is considered, the prediction error of the model is drastically reduced. This implies that it is important to incorporate CSS expectations into the storage hydropower model.

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“…A recent paper [12] by Thomé et al proposes a Lagrangian relaxation of of the SDDP subproblem, and then uses the Lagrange multipliers to produce valid Benders cuts. A similar approach is adopted by Steeger and Rebennack in [11]. Abgottspon et al [1] introduce a heuristic to add locally valid cuts that enhance a convexified approximation of the value function.…”

Section: Introductionmentioning

confidence: 99%

MIDAS: A mixed integer dynamic approximation scheme

2019

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Mixed Integer Dynamic Approximation Scheme (MIDAS) is a new sampling-based algorithm for solving finite-horizon stochastic dynamic programs with monotonic Bellman functions. MIDAS approximates these value functions using step functions, leading to stage problems that are mixed integer programs. We provide a general description of MIDAS, and prove its almost-sure convergence to an ε-optimal policy when the Bellman functions are known to be continuous, and the sampling process satisfies standard assumptions.

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Strategic bidding for multiple price-maker hydroelectric producers

Cited by 15 publications

References 42 publications

Optimal Offering Strategy of a Price-Maker Hydro Producer Considering the Effects of Crossing the Forbidden Zones

Optimal Offering Strategy of a Price-Maker Hydro Producer Considering the Effects of Crossing the Forbidden Zones

The impact of Clean Spark Spread expectations on storage hydropower generation

MIDAS: A mixed integer dynamic approximation scheme

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