MCP forecasting and risk considered genco's bidding strategies in electricity market

  • Haifeng Zhang
  • , Zhixi Kang
  • , Jiang Wu
  • , Feng Gao

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

As one of the most important parts in power system, electricity price forecasting has been a crucial factor for the generation companies' (Genco) bidding strategies, through which Gencos can maximize their potential benefits. However, high income is always coupled with high risk, as electricity volatility, demand uncertainty, and bidding strategies of rivals. In this paper, a bidding strategy based on Market Clearing Price (MCP) forecasting and risk management theory is presented. A Genco's bidding behavior is modeled as a risky decision making process in which Genco aims to the higher profit with lower risk, and the bidding strategy for the Genco can be obtained by solving a risk-utility function. At the end of the paper, numerical testing results show that this method is effective.

Original languageEnglish
Title of host publication2010 8th World Congress on Intelligent Control and Automation, WCICA 2010
Pages3266-3270
Number of pages5
DOIs
StatePublished - 2010
Event2010 8th World Congress on Intelligent Control and Automation, WCICA 2010 - Jinan, China
Duration: 7 Jul 20109 Jul 2010

Publication series

NameProceedings of the World Congress on Intelligent Control and Automation (WCICA)

Conference

Conference2010 8th World Congress on Intelligent Control and Automation, WCICA 2010
Country/TerritoryChina
CityJinan
Period7/07/109/07/10

Keywords

  • Bidding strategies
  • Electricity market
  • Genetic programming
  • Risk

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