Fuzzy game theory approach in calculating the optimal bidding strategy of generating companies with consideration of load forecast uncertainty

This work presents a new method for calculating the optimal bidding strategies among Generating Companies (GENCOs) in the electricity markets with imperfect competition and complete information. Furthermore, the optimal strategies are calculated with considering the fuzzy uncertainty of load forecast and using the fuzzy game theory. In this paper, the parameterized supply function equilibrium (SFE) is employed for modeling the imperfect competition among GENCOs in which proportionate parameterization of the sole and the intercept is used. A pay-as-LMP pricing mechanism is assumed for settling the market and calculating the GENCOs´ profits. A six GENCOs test system are used to illustrate the efficiency of the proposed approach.