A new GA-approach for optimizing bidding strategy viewpoint of profit maximization of a GENCO

Generation companies (GENCO) wish to maximize their profit while participate in the electricity market. In this paper, a GA approach is developed for solving GENCO profit maximization problem to determine optimal bidding strategy for GENCO in the day-ahead market. It is assumed that Each GENCO submit its own bid as pairs of price and quantity. Also, it was assumed that the sealed auction with a pay-as-bid MCP would be employed. Since, there are some complex constraints for GENCO to be taken into account; this is a non-convex problem which is difficult to solve by traditional optimization techniques. In this paper, problem is solved from view point of profit maximization of GENCO that consider both rivals´ bid and profit functions. Therefore, there is a multi-objective function to solve. A simple example is designed and illustrated how GA-approach can tackle this problem efficiently.