1,492 research outputs found

    Optimal Bidding Strategies for Generation Companies in Electricity Markets with Transmission Capacity Constraints Taken into Account

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    In the electricity market environment, how to build optimal bidding strategies has become a major concern for generation companies. The deficiency of transmission capacity could lead to congestion, and as a result, the whole electricity market can then be actually divided into two or more submarkets. A direct consequence of transmission congestion is the change of competitive positions of generation companies concerned in the electricity market, and the optimal bidding strategies of them should accordingly be changed. In this paper, the problem of developing optimal bidding strategies for generation companies is systematically investigated with transmission capacity constraints taken into account. A stochastic optimization model is first formulated under the presumption that the bidding behaviors of rival generation companies could be modeled as normal probability distributions. An approach is next presented for solving the optimization problem using the well-known Monte Carlo simulation method and the genetic algorithm. Finally, a simple sample example and the modified IEEE 14-bus system are employed to illustrate the essential features of the proposed model and method.published_or_final_versio

    Optimal GENCO bidding strategy

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    Electricity industries worldwide are undergoing a period of profound upheaval. The conventional vertically integrated mechanism is being replaced by a competitive market environment. Generation companies have incentives to apply novel technologies to lower production costs, for example: Combined Cycle units. Economic dispatch with Combined Cycle units becomes a non-convex optimization problem, which is difficult if not impossible to solve by conventional methods. Several techniques are proposed here: Mixed Integer Linear Programming, a hybrid method, as well as Evolutionary Algorithms. Evolutionary Algorithms share a common mechanism, stochastic searching per generation. The stochastic property makes evolutionary algorithms robust and adaptive enough to solve a non-convex optimization problem. This research implements GA, EP, and PS algorithms for economic dispatch with Combined Cycle units, and makes a comparison with classical Mixed Integer Linear Programming.;The electricity market equilibrium model not only helps Independent System Operator/Regulator analyze market performance and market power, but also provides Market Participants the ability to build optimal bidding strategies based on Microeconomics analysis. Supply Function Equilibrium (SFE) is attractive compared to traditional models. This research identifies a proper SFE model, which can be applied to a multiple period situation. The equilibrium condition using discrete time optimal control is then developed for fuel resource constraints. Finally, the research discusses the issues of multiple equilibria and mixed strategies, which are caused by the transmission network. Additionally, an advantage of the proposed model for merchant transmission planning is discussed.;A market simulator is a valuable training and evaluation tool to assist sellers, buyers, and regulators to understand market performance and make better decisions. A traditional optimization model may not be enough to consider the distributed, large-scale, and complex energy market. This research compares the performance and searching paths of different artificial life techniques such as Genetic Algorithm (GA), Evolutionary Programming (EP), and Particle Swarm (PS), and look for a proper method to emulate Generation Companies\u27 (GENCOs) bidding strategies.;After deregulation, GENCOs face risk and uncertainty associated with the fast-changing market environment. A profit-based bidding decision support system is critical for GENCOs to keep a competitive position in the new environment. Most past research do not pay special attention to the piecewise staircase characteristic of generator offer curves. This research proposes an optimal bidding strategy based on Parametric Linear Programming. The proposed algorithm is able to handle actual piecewise staircase energy offer curves. The proposed method is then extended to incorporate incomplete information based on Decision Analysis. Finally, the author develops an optimal bidding tool (GenBidding) and applies it to the RTS96 test system

    Testing the Reliability of FERC's Wholesale Power Market Platform: An Agent-Based Computational Economics Approach

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    In April 2003 the U.S. Federal Energy Regulatory Commission (FERC) proposed the Wholesale Power Market Platform (WPMP) for common adoption by U.S. wholesale power markets. The WPMP is a complicated market design that has been adopted in some regions of the U.S. but resisted in others on the grounds that its reliability has not yet been sufficiently tested. This article reports on the development of an agent-based computational framework for exploring the economic reliability of the WPMP. The key issue under study is the extent to which the WPMP is capable of sustaining efficient, orderly, and fair market outcomes over time despite attempts by market participants to gain advantage through strategic pricing, capacity withholding, and/or induced transmission congestion. Related work can be accessed at: http://www.econ.iastate.edu/tesfatsi/AMESMarketHome.htm

    Agent-based simulation of electricity markets: a literature review

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    Liberalisation, climate policy and promotion of renewable energy are challenges to players of the electricity sector in many countries. Policy makers have to consider issues like market power, bounded rationality of players and the appearance of fluctuating energy sources in order to provide adequate legislation. Furthermore the interactions between markets and environmental policy instruments become an issue of increasing importance. A promising approach for the scientific analysis of these developments is the field of agent-based simulation. The goal of this article is to provide an overview of the current work applying this methodology to the analysis of electricity markets. --

    Exploring computational power markets with evolutionary algorithms

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    The recent deregulation of the electric industry in the United States opened some sectors of the power market to competition. This work addresses a computational restructured wholesale electricity market. The goal of the study is to model agent driven bilateral power market auctions where the players are represented by autonomous intelligent agents. Different aspects of the market are considered. Some of them are studies on structural and strategic market power of buyers and sellers varies with changes in relative concentration and relative capacity. Others are cases where players attempt to benefit from causing instabilities like brownouts and blackouts, as well as economic instabilities by applying different gaming strategies. Agents are modeled using various evolutionary programming techniques, such as reinforced learning, genetic algorithms and genetic programming. The results suggest that some of the solutions are suitable for robust industrial applications

    Interval prediction algorithm and optimal scenario making model for wind power producers bidding strategy

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    Nowadays, renewable energies are important sources for supplying electric power demand and a key entity of future energy markets. Therefore, wind power producers (WPPs) in most of the power systems in the world have a key role. On the other hand, the wind speed uncertainty makes WPPs deferent power generators, which in turn causes adequate bidding strategies, that leads to market rules, and the functional abilities of the turbines to penetrate the market. In this paper, a new bidding strategy has been proposed based on optimal scenario making for WPPs in a competitive power market. As known, the WPP generation is uncertain, and different scenarios must be created for wind power production. Therefore, a prediction intervals method has been improved in making scenarios and increase the accuracy of the presence of WPPs in the balancing market. Besides, a new optimization algorithm has been proposed called the grasshopper optimization algorithm to simulate the optimal bidding problem of WPPs. A set of numerical examples, as well as a case-study based on real-world data, allows illustrating and discussing the properties of the proposed method

    Review of trends and targets of complex systems for power system optimization

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    Optimization systems (OSs) allow operators of electrical power systems (PS) to optimally operate PSs and to also create optimal PS development plans. The inclusion of OSs in the PS is a big trend nowadays, and the demand for PS optimization tools and PS-OSs experts is growing. The aim of this review is to define the current dynamics and trends in PS optimization research and to present several papers that clearly and comprehensively describe PS OSs with characteristics corresponding to the identified current main trends in this research area. The current dynamics and trends of the research area were defined on the basis of the results of an analysis of the database of 255 PS-OS-presenting papers published from December 2015 to July 2019. Eleven main characteristics of the current PS OSs were identified. The results of the statistical analyses give four characteristics of PS OSs which are currently the most frequently presented in research papers: OSs for minimizing the price of electricity/OSs reducing PS operation costs, OSs for optimizing the operation of renewable energy sources, OSs for regulating the power consumption during the optimization process, and OSs for regulating the energy storage systems operation during the optimization process. Finally, individual identified characteristics of the current PS OSs are briefly described. In the analysis, all PS OSs presented in the observed time period were analyzed regardless of the part of the PS for which the operation was optimized by the PS OS, the voltage level of the optimized PS part, or the optimization goal of the PS OS.Web of Science135art. no. 107
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