Price-maker strategies of a hydro producer in a day-ahead electricity market

In this paper, a stochastic mixed-integer linear programming approach is proposed to find the optimal operations planning of a hydro producer acting as a risk-neutral price-maker trading in the day-ahead market based on a pool. The proposed approach optimizes a set of scenarios using as decision variables the amount of power supplied by each generation unit facing the 24-hours residual demand curves of each scenario. The supply competitive curves are built and the optimal bidding strategy is developed in the day-ahead market, in order to maximize the expected profit of the price-maker hydro producer. Results from a real-world case study are presented. Finally, conclusions are duly drawn.