Bidding strategy for gencos in competitive markets

In the deregulated power market, bidding strategy plays an important part in most activities of the generator companies (Gencos). It has the objective in maximizing the profit of the Gencos through bidding strategy involved. The bidding strategy is being formulated through various processes, from load forecasting to price based unit commitment, so as to allow Gencos to make the most suitable decision for their existing investments. In this project, the various processes will be investigated, including load forecasting, price forecasting, price based unit commitment, in the electricity market. Load forecasting is usually based on time factor, weather factor and economic factor. Forecasted load then will be needed for forecasting price of electricity, as price is driven by the load demand of the power system most of the time. There are other factors contributing to the electricity prices, such as system outages and the effect from the Gencos’ bidding strategies adopted. Price based unit commitment come into play as it is used to maximize Gencos’ profits through scheduling of generation resources under market prices. Factors such as characteristics of generators and price uncertainty will need to be considered.Bachelor of Engineerin