A method for optimizing the offer price of collaborative power generators

This paper presents a method for determining the offer price of collaborative power generators. The method considers an alliance formed by G generators with n independent offer prices. They collaboratively propose an offer price to the electricity wholesale market. The binary knapsack problem aimed at finding the best generation share of each generator that yields the maximum return to the alliance is used to represent the problem. It is solved with a hybrid algorithm consisting genetic algorithm and dynamic programming. The method is intended for promoting the participation of new power generators in the electricity market by way of horizontal supply chain integration.