Demand bidding construction for a large consumer through a hybrid IGDT-probability methodology

Kazem Zare, Mohsen Parsa Moghaddam and Mohammad Kazem Sheikh El Eslami

Energy, 2010, vol. 35, issue 7, 2999-3007

Abstract: This paper provides a technique to derive the bidding strategy in the day-ahead market for a large consumer that procures its electricity demand in both day-ahead market and a subsequent adjustment market. It is considered that hourly market prices are normally distributed and this correlation is modeled by variance–covariance matrix. The uncertainty of procurement cost is modeled using concepts derived from information gap decision theory which allows deriving robust bidding strategies with respect to price volatility. First Order Reliability Method is applied to construct the robust bidding curve. The proposed technique is illustrated through a realistic case study.

Keywords: Bidding strategy; First order reliability method; Information gap decision theory; Large consumer (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:35:y:2010:i:7:p:2999-3007

DOI: 10.1016/j.energy.2010.03.036

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