Optimization of the Spanish market sequence by a price-taker generating firm

Á. Franco, E. Lobato, L. Rouco, A. Ugedo, J. Fernández-Caro, J. de Benito, J. Chofre Álvarez, J. de la Hoz-Ardiz

IEEE PowerTech Conference - PowerTech 2003, Bologna (Italy). 22-26 junio 2003

Summary:
The Spanish electricity business, deregulated since January 1st 1998, has been organized in two different types of markets: (a) the energy markets (which include the day-ahead electricity market and 6 intradaily markets) and (b) the ancillary services markets (comprising the secondary and tertiary reserve markets and the deviation management markets). A generating firm must decide the generation resources to be distributed within each of the mentioned markets. This paper proposes a stochastic optimization model that decides the amount of resources to be distributed by a price-taker generating firm in each market of the generation business. The objective function maximizes the agent expected total profit. In addition, the model obtains the bid curves of the firm to be submitted to the hourly periods of each market. A case study illustrates the performance of the model proposed.

Keywords: Generation scheduling, competitive electricity market, bidding strategies.

DOI: 10.1109/PTC.2003.1304603

Publication date: June 2003.

Citation:
Franco, Á., Lobato, E., Rouco, L., Ugedo, A., Fernández-Caro, J., de Benito, J., Chofre Álvarez, J., de la Hoz-Ardiz, J., Optimization of the Spanish market sequence by a price-taker generating firm, IEEE PowerTech Conference - PowerTech 2003, Bologna (Italy). 22-26 June 2003.

IIT-03-046A