Optimal bidding strategies on the power market based on the stochastic models

In this paper we concentrate on power producers´ strategies on the electricity market with contracts and Asian-type call options for power delivery. We propose stochastic asymmetric supply function equilibrium and Cournot models that are based on the assumption of the stochastic behavior of electricity prices. We demonstrate how in this stochastic case the considered derivatives influence on the power producers´ profits. In order to demonstrate theoretical results to the analysis we use the real electricity prices.