Development Of Risk-constrained Bidding Strategies For Generation Companies

At present, Chinese power industry system reforms progressively. It is the trend to implement the policy of "separating generation from transmission and creating a price competition system in the generation side". The last goals are to accomplish the profit maximization and risk minimization. It also shows that the profit and risk is a pair of mutually contradictory index. High profit causes usually high risk.This paper firstly analyses the characteristics in power producer's bidding strategy making and risky decision making issues and proposes a risky decision method to solve the problem of bidding strategy making in the spot market. By using the expectation principle to make decision, the risk favor of different decision maker is considered. The important effect of utility on decisions is discussed, and the different optimal bidding strategy for different decision maker obtained, the results verify the validity of the model.In addition, the bidding strategy is studied for power suppliers. Considering the fluctuation of the electricity price, a bidding strategy model based on the the most profitable and least risky is proposed. Consequently, an improved genetic algorithm is applied to solve the problem. A numerical example shows that the competitive model and the algorithms are both practical.