Title :
Optimal Demand-Side Bidding Strategies in Electricity Spot Markets
Author :
Herranz, R. ; Munoz San Roque, A. ; Villar, Jose ; Campos, Fco Alberto
Author_Institution :
Inst. de Investig. Tecnol. (IIT), Univ. Pontificia Comillas, Madrid, Spain
Abstract :
This paper proposes a methodology for determining the optimal bidding strategy of a retailer who supplies electricity to end-users in the short-term electricity market. The aim is to minimize the cost of purchasing energy in the sequence of trading opportunities that provide the day-ahead and intraday markets. A genetic algorithm has been designed to optimize the parameters that define the best purchasing strategy. The proposed methodology has been tested using real data from the Spanish day-ahead and intraday markets over a period of two years with a significant cost reduction with respect to trading solely in the day-ahead market.
Keywords :
costing; power markets; purchasing; retailing; Spanish day-ahead markets; Spanish intraday markets; electricity spot markets; energy purchasing cost; optimal bidding strategy; optimal demand-side bidding strategies; purchasing strategy; retailer; short-term electricity market; trading opportunities; Delta modulation; Electricity; Genetic algorithms; Load forecasting; Optimization; Stochastic processes; Uncertainty; Electricity markets; genetic algorithms; strategic bidding;
Journal_Title :
Power Systems, IEEE Transactions on
DOI :
10.1109/TPWRS.2012.2185960