Integrated resource scheduling and bidding in the deregulated electric power market: New challenges

Two promising bidding strategies for power suppliers are discussed. The ordinal optimization method seek `good enough' bids with high probability, and is effective in handling market uncertainties with much reduced computational efforts. The game theoretic method aims at bidding and self-scheduling of a utility company at New England. The uncertainties caused bids from other bidders and the independent system operator (ISO) bid selection process are explicitly considered. The problem is then solved within a reduced game theoretical framework, where the ISO has a closed form solution for a given probabilistics description of the bids, and the utility's problem is solved by using Lagrangian relaxation.