Optimal bidding strategy for day-ahead power market

Jie Li, Zuyi Li, Yaming Wang

Research output: Chapter in Book/Report/Conference proceedingConference contribution

5 Scopus citations


Participants in the restructured power market are seeking effective generation resource bidding strategies. This paper proposes a methodology to obtain the optimal bidding strategy for generation companies (GENCOs) participating in electric power markets. Supply function like model, which chooses to strategically bid generation prices of bid curves, is used here for the day-ahead market auction. Different strategies are used on different supply curve segments, and the inter-temporal physical constraints of units are considered to derive a multiple-period bidding strategy. Imperfect competition in realistic power markets is modeled as a non-cooperative game, with each participant holding incomplete information about its opponents. A two-layer optimization problem is modeled, with the upper layer representing the GENCO's profit maximization problem and the lower layer representing the independent system operator's (ISO) market clearing problem based on transmission constrained market clearing. Illustrative examples show the effectiveness of multi-segment, multi-period bidding strategies.

Original languageEnglish (US)
Title of host publication2015 North American Power Symposium, NAPS 2015
PublisherInstitute of Electrical and Electronics Engineers Inc.
ISBN (Electronic)9781467373890
StatePublished - Nov 20 2015
Externally publishedYes
EventNorth American Power Symposium, NAPS 2015 - Charlotte, United States
Duration: Oct 4 2015Oct 6 2015

Publication series

Name2015 North American Power Symposium, NAPS 2015


ConferenceNorth American Power Symposium, NAPS 2015
Country/TerritoryUnited States

All Science Journal Classification (ASJC) codes

  • Energy Engineering and Power Technology
  • Electrical and Electronic Engineering
  • Control and Systems Engineering


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