Electric power bidding model for practical utility system

A competitive open market environment has been created due to the restructuring in the electricity market. In the new competitive market, mostly a centrally operated pool with a power exchange has been introduced to meet the offers from the competing suppliers with the bids of the customers. In such an open access environment, the formation of bidding strategy is one of the most challenging and important tasks for electricity participants to maximize their profit. To build bidding strategies for power suppliers and consumers in the restructured electricity market, a new mathematical framework is proposed in this paper. It is assumed that each participant submits several blocks of real power quantities along with their bidding prices. The effectiveness of the proposed method is tested on Indian Utility-62 bus system and IEEE-118 bus system. Keywords: Bidding strategy, Day ahead electricity market, Market clearing price, Market clearing volume, Block bid, Intermediate value theore