Price-based unit commitment for bidding under price uncertainty

Abstract

Bidding plays an important role for Gencos participating in competitive electricity markets with the objective of maximising profit. While making bidding strategies, factors like characteristics of generators and price uncertainty need to be considered as they have direct impact on the expected profit. In this work, a method of building an optimal bid curve under price uncertainty using price-based unit commitment (PBUC) is presented. The results indicate a simple yet an effective bidding method.