{"title":"GenCos- Optimal Bidding Strategy Considering Market Power and Transmission Constraints: A Cournot-based Model","authors":"A. Badri","volume":54,"journal":"International Journal of Economics and Management Engineering","pagesStart":823,"pagesEnd":830,"ISSN":"1307-6892","URL":"https:\/\/publications.waset.org\/pdf\/11456","abstract":"Restructured electricity markets may provide\r\nopportunities for producers to exercise market power maintaining\r\nprices in excess of competitive levels. In this paper an oligopolistic\r\nmarket is presented that all Generation Companies (GenCos) bid in a\r\nCournot model. Genetic algorithm (GA) is applied to obtain\r\ngeneration scheduling of each GenCo as well as hourly market\r\nclearing prices (MCP). In order to consider network constraints a\r\nmultiperiod framework is presented to simulate market clearing\r\nmechanism in which the behaviors of market participants are\r\nmodelled through piecewise block curves. A mixed integer linear\r\nprogramming (MILP) is employed to solve the problem. Impacts of\r\nmarket clearing process on participants- characteristic and final\r\nmarket prices are presented. Consequently, a novel multi-objective\r\nmodel is addressed for security constrained optimal bidding strategy\r\nof GenCos. The capability of price-maker GenCos to alter MCP is\r\nevaluated through introducing an effective-supply curve. In addition,\r\nthe impact of exercising market power on the variation of market\r\ncharacteristics as well as GenCos scheduling is studied.","references":"[1] A.J. Wood, B.F Wollenberg, Power generation operation and control,\r\n2nd ed., New York: John Wiley & Sons, Inc., 1996.\r\n[2] Y. Fu, M. Shahidehpour and Z. Li, \"Security-constrained unit\r\ncommitment with AC constraints,\" IEEE Trans. Power Systems, vol. 20,\r\nno.2, pp.1001-1013, May. 2005.\r\n[3] Z. Li and M. Shahidehpouri, \"Security-constrained unit commitment for\r\nsimultaneous clearing of energy and ancillary service markets,\" IEEE\r\nTrans. Power Systems, vol. 20, no.2, pp.1079-1088, May. 2005.\r\n[4] C. Richter and G.B. Sheble, \"A profit-based unit commitment GA for\r\nthe competitive environment,\" IEEE Trans. Power Systems, vol. 15,\r\nno.2, pp.715-721, May. 2000.\r\n[5] B. Pokharel, GB. Shrestha, T. Lie and S. Fleten, \"Profit based unit\r\ncommitment in competitive markets,\" Int. Conference on Power System\r\nTechnology, pp. 1728-1733, Nov. 2004.\r\n[6] L.K. Yu and Y.H. Song, \"Short-term generation scheduling of thermal\r\nunits with voltage security and environmental constraints,\" IEE Proc.\r\nGener. Transm. Distrib., vol. 144, no. 5, pp. 469-476, Sep. 1997.\r\n[7] H. Yamin and M. Shahidehpour, \"Unit commitment using a hybrid\r\nmodel between lagrangian relaxation and genetic algorithm in\r\ncompetitive electricity market,\" Electric Power System Research, 68,\r\npp. 83-92, May.2004.\r\n[8] C.P. Cheng and C.C. Liu, \"Unit commitment by lagrangian relaxation\r\nand genetic algorithm,\" IEEE Trans. Power Systems, vol. 15, no.2,\r\npp.707-714, May. 2000.\r\n[9] M.Y. Sharkh and H. Chen, \"A fuzzy evolutionary programming-based\r\nmethodology for security-constrained generation maintenance\r\nscheduling,\" Electric Power System Research, 67, pp. 67-72, May.\r\n2003.\r\n[10] H. Yamin, A. Agtash and M. Shahidehpour, \"Security-constrained\r\noptimal scheduling for GenCos,\" IEEE Trans. Power Systems, vol. 19,\r\nno.3, pp.1365-1372, Aug. 2004.\r\n[11] H.Saadat ,\" Power System Analysis,\" WCB Mc Graw Hill Companies,\r\nNew York, 2002.","publisher":"World Academy of Science, Engineering and Technology","index":"Open Science Index 54, 2011"}