Summary:
Wholesale electricity markets can be organised into different types of markets—energy markets and ancillary services markets—that are cleared sequentially. The paper proposes a stochastic-optimisation model to obtain the distribution of the electricity resources of a generation firm among the different sequential markets within a wholesale electricity market. Market power is modelled by linear approximations of the residual-demand curves. In addition, the model obtains the bid curves of a generation firm that are submitted for every hourly period of each market comprising the sequence. A methodology to estimate the stochastic residual-demand curves for every hour of each market based on decision trees has been designed. The model has been developed for a Spanish utility to operate in the Spanish electricity market. A case study illustrates the performance of the proposed model.
Keywords: Strategic bidding; wholesale electricity market; stochastic-optimisation model; electricity resource distribution; power generation firm; linear appro
JCR Impact Factor and WoS quartile: 0,293 (2006); 0,868 (2008)
DOI reference:
https://doi.org/10.1049/ip-gtd:20045192
Published on paper: July 2006.
Citation:
A. Ugedo, E. Lobato, Á. Franco, L. Rouco, J. Fernández-Caro, J. Chofre Álvarez Strategic bidding in sequential electricity markets. IEE Proceedings-Generation Transmission and Distribution. Vol. 153, nº. 4, pp. 431 - 442, July 2006.
