Optimal bidding strategy for all market players in a wholesale power market considering demand response programs

摘要

In a wholesale power market, generation companies (GENCOs) and distribution companies (DISCOs), asnmarket players, try to maximize their payoffs by implementation of optimal strategies. This paper presents anmethod for determining GENCOs and DISCOs’ optimal bidding strategies considering other participants’nbidding and power systems operating conditions. It is assumed that DISCOs bid their distributed generationsn(DG) and GENCOs bid their generators in a day-ahead wholesale energymarket.Meanwhilewe assume thatnDISCOs bid interruptible loads (ILs) in market on behalf of their end customers. The proposed methodologynis modeled as a bi-level multi-objective optimization problem with the upper subproblem representingnindividual GENCOs and DISCOs and the lower subproblem representing the Independent System Operatorn(ISO). The upper level maximizes the individual market participant’s payoffs and the lower one solves thenISO’s market clearing problem for minimizing operation costs. Genetic algorithm (GA) and fuzzy satisfyingnmethod (FSM) are employed for solving the proposed model and determining optimal bidding strategies. Anneight-bus system is employed to illustrate the proposed method. Copyright#2010 JohnWiley & Sons, Ltd.