Title :
Strategic Bidding for Price-Taker Hydroelectricity Producers
Author :
De Ladurantaye, Daniel ; Gendreau, Michel ; Potvin, Jean-Yves
Author_Institution :
Univ. of Montreal, Montreal
Abstract :
This paper introduces a stochastic programming model that integrates strategic bids or offers for electricity (in quantities and prices) in a deregulated electricity market. The model is designed to maximize the profits of a producer of electricity who manages a series of power plants along a river. The model is compared with a previously reported stochastic model where the bidding process is disregarded. The superiority of the new model is empirically demonstrated on historical data.
Keywords :
hydroelectric power stations; power markets; stochastic programming; deregulated electricity market; hydroelectric power plant; power generation economics; stochastic programming model; strategic bidding; Electricity supply industry; Electricity supply industry deregulation; Hydroelectric power generation; Linear approximation; Mathematical programming; Power generation; Reservoirs; Rivers; Stochastic processes; Water resources; Dams; energy market; hydroelectricity; mathematical programming; power plants; prices; reservoirs; stochastic programming;
Journal_Title :
Power Systems, IEEE Transactions on
DOI :
10.1109/TPWRS.2007.907457
