Impact of renewable energy sources on modelling of bidding strategy in a competitive electricity market using improved whale optimization algorithm

In a competitive power market, generating utilities can be enhanced to achieve maximum profit by implementing a process of bidding strategy. Now‐a‐days renewable sources like solar and wind have become better alternatives significantly than other sources prior to power generation. These sources have extensive utilisation day‐by‐day in power sector and their impact in developing precise bidding strategies is getting more challenging aspect in the market. Since these renewable sources possess intermittent nature and undergo many uncertainties, the generating utilities encounter an unavoidable problem. Taking these aspects into consideration, attempts have been made using improved whale optimization algorithm to make the bidding strategy model for maximizing the power supplier's profit. Weibull and Beta distribution functions are used for modelling the stochastic characteristics of wind‐speed profile and solar‐irradiation, respectively. The proposed technique is tested and clarified with an IEEE‐30, IEEE‐57 and practical 75‐bus Indian system. The outcomes of this method were taken into comparison with other optimization techniques and found that it has an advantage upon other methods in solving bidding problems. Further, it is observed that the impact of renewable sources on bidding strategy reduces the market clearing price and the generation of thermal power while increases the total bidding power.