Application and development of improved meta-heuristic for making profitable bidding strategy in a day-ahead energy market under step-wise bidding scenario

Abstract

In this paper, a hybrid model of whale optimisation algorithm (WOA) and sine-cosine algorithm (SCA), i.e., HWOASCA is proposed to solve optimal bidding problem of restructured power system with the aim of profit maximisation of generating company. First, HWOASCA algorithm is validated on 22 standard benchmark functions. After getting it supremacy over benchmark functions, it is verified on bidding problem of 7 GENCO's participating in an electricity market. By suggested approach, the optimal solution for market clearing price (MCP), load dispatch and tender cost under different capacity and price blocks are calculated. After meaningful comparison from other state of the art approaches, it is observed that the profit obtained by the proposed approach is significantly higher for single-hourly and multi-hourly trading trends. The mathematical and experimental results confirm the supremacy of proposed hybrid version of algorithm which is extremely useful for framing the bidding strategies for a generation company.