A hybrid optimization model for proficient bidding strategies with no Karush–Kuhn–Tucker optimality conditions

Abstract

SummaryThe computational complexity behind the bi‐level optimization problem has led the researchers to adopt Karush–Kuhn–Tucker (KKT) optimality conditions. However, the problem function has more number of complex constraints to be satisfied. Classical optimization algorithms are impotent to handle the function. This paper presents a simplified minimization function, in which both the profit maximization problem and the ISO market clearance problem are considered, but with no KKT optimality conditions. Subsequently, this paper solves the minimization function using a hybrid optimization algorithm. The hybrid optimization algorithm is developed by combining the operations of group search optimizer (GSO) and genetic algorithm (GA). The hybridization enables the dispersion process of GSO to be a new mutated dispersion process for improving the convergence rate. We evaluate the methodology by experimenting on IEEE 14 and IEEE 30 bus systems. The obtained results are compared with the outcomes of bidding strategies that are based on GSO, PSO, and GA. The results demonstrate that the hybrid optimization algorithm solves the minimization function better than PSO, GA, and GSO. Hence, the profit maximization in the proposed methodology is relatively better than that of the conventional algorithms. Copyright © 2015 John Wiley & Sons, Ltd.