Title :
Optimization based bidding strategies in the deregulated market
Author :
Zhang, Daoyuan ; Wang, Yajun ; Luh, Peter B.
Author_Institution :
Ascend Commun. Inc., Wallingford, CT, USA
Abstract :
With the deregulation of electric power systems, market participants are facing an important task of bidding energy to an independent system operator (ISO). This paper presents a model and a method for optimization-based bidding and self-scheduling where a utility bids part of its energy and self-schedules the rest as in New England. The model considers ISO bid selections and uncertain bidding information of other market participants. With appropriately simplified bidding and ISO models, closed-form ISO solutions are first obtained. These solutions are then plugged into the utility´s bidding and self-scheduling model which is solved by using Lagrangian relaxation. Testing results show that the method effectively solves the problem with reasonable amount of CPU time
Keywords :
electricity supply industry; optimisation; power system analysis computing; power system economics; CPU time; ISO bid selections; Lagrangian relaxation; closed-form ISO solutions; computer simulation; deregulated electricity market; electric power systems; independent system operator; market participants; optimization based bidding strategies; self-scheduling; self-scheduling model; uncertain bidding information; Cost function; Game theory; ISO; Lagrangian functions; Linear programming; Optimization methods; Power system modeling; Pricing; Stochastic processes; Testing;
Conference_Titel :
Power Industry Computer Applications, 1999. PICA '99. Proceedings of the 21st 1999 IEEE International Conference
Conference_Location :
Santa Clara, CA
Print_ISBN :
0-7803-5478-8
DOI :
10.1109/PICA.1999.779386