Generation Scheduling for a price taker Genco in competitive power markets

The electric power industry in the last decades has evolved from a centralized operational approach to a deregulated one. Many participants and service providers have made up the new structure of the power market where the competition is increasing. As the new deregulating framework is imperfect, it is quite important for the Gencos to develop optimal bidding strategies which are vital to their benefits in maximizing profits and minimizing the cost. With different types of Gencos, their influences to the market also will be complex. Accordingly scheduling of generators depends on the market clearing which will mostly depend on the bids by larger market participants. Small price taker Gencos cannot influence the market clearing, so it needs a strategy in bidding so that it can survive in the market and make a reasonable profit. The purpose of this paper is to investigate a bidding strategy for genco which utilizes the historical price data to devise appropriate bidding strategies in order to recover the costs and to maximize the profits.