Consideration of load forecast uncertainty in calculating the optimal bidding strategy of Generating Companies

Abstract

This work presents a new method for calculating the optimal bidding strategies among Generating Companies (GENCOs) in the electricity markets with imperfect competition and complete information. Furthermore, the optimal strategies are calculated with considering the uncertainty of load forecast. In this paper, the parameterized supply function equilibrium (SFE) is employed for modeling the imperfect competition among GENCOs in which proportionate parameterization of the sole and the intercept is used. A pay-as-LMP pricing mechanism is assumed for settling the market and calculating the GENCOs' profits. The fuzzy and probabilistic approaches are utilized for modeling the uncertainty of load forecast. A nine GENCOs test system are used to illustrate the efficiency of these approaches.