Open AccessPrice restricted optimal bidding model using derated sensitivity factors by considering risk concept
Author(s) -
Ahmadian Saeed,
Vahidi Behrooz,
Jahanipour Jahandar,
Hoseinian Seyed Hossein,
Rastegar Hasan
Publication year - 2016
Publication title -
iet generation, transmission and distribution
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.92
H-Index - 110
eISSN - 1751-8695
pISSN - 1751-8687
DOI - 10.1049/iet-gtd.2015.0014
Subject(s) - bidding , sensitivity (control systems) , derating , computer science , electricity market , profit (economics) , mathematical optimization , operations research , electricity , econometrics , economics , microeconomics , power (physics) , engineering , mathematics , electrical engineering , electronic engineering , physics , quantum mechanics
In this study, a new model for participating in market is presented in which each generation company (GENCO), considering nodal price limitation, defines a risk index. Using a linear combination, it determines its proposed bid based on energy prices of other buses. Since each participant in power market needs reference points to decide, concept of sensitivity factors is introduced initially. Consequently, using these factors, potential points are obtained. To model price uncertainty, risk concept is cooperated into sensitivity factors. After that, using regulation factors, new derated sensitivity factors (DSFs) are defined. Applying these factors, each player's model in the market is divided into two parts. In the first part, modelling its rival's behaviour, a player proposes its bid in such a way that obtained nodal price becomes equal to estimated nodal price. In the second part, computing DSFs and using potential bus prices, linear combination of regulation factors are utilized to modify GENCO's offer. Player's profit function would be average of both parts. GAMS software is executed to solve this problem. Different scenarios are considered to cover nodal electricity and fuel price uncertainties. A 30‐bus system with six GENCOs is used to verify the proposed model.