Increasing the flexibility of European type electricity auctions via a novel bid class

In the framework of EUPHEMIA, Minimum Income Condition (MIC) orders are supply orders consisting of several hourly step bids for different market hours, bound together by the MIC, which formalizes the requirement that the overall income of the MIC order must cover its given costs, usually composed by a fixed and a variable term. In this paper we introduce a so-called flexible orders, which are also based on the the MIC description, but are composed of mutually exclusive different production profiles. We define the computational formulation of this possible new bid type, and demonstrate the properties of the bid acceptance in the case of two simple two-period examples, considering various market clearing prices (MCPs). We argue that this new type of bid increases the flexibility of day-ahead markets in the presence of price-uncertainty