Power system bidding tournaments for a deregulated environment

We describe certain tools for understanding and operating power systems in a deregulated environment. Many of the current models for this competitive market that employ an independent system operator (ISO) for controlling transmission, ensuring fair access and security, and providing a spot market for power are studied. This centrally dispatched power pool also ensures that generation meets demand based on bids submitted daily from independent generators (and from customers offering interruptible loads). Currently, most ISO bidding models allow only a single bid per day. We present an asynchronous bidding scheme as a possible alternative. In particular, we examine the effects of including a feedback mechanism such that upon receiving generation levels from the ISO, independent generators (IGs) be allowed to modify their bid if they so desire. This competitive or `sequential´ bidding process should be allowed to take place each day for a predetermined period of time; in this way, IGs will have a chance to compete and hopefully optimize their profit margins. The paper also discusses the development tools necessary for examining the effects of different bidding processes on the ISO model and evaluating their capability of driving the market to an efficient state of operation