Security Constrained Unit Commitment Economic Dispatch based Optimal Bidding Strategy in Risky Environment

Abstract

The rise of technology and demand provides a challenge to reduce carbon emission in the environment. To reduce carbon emission appropriate policies are used in the energy market. In this paper, a security constrained unit commitment economic dispatch (SCUCED) based optimal bidding strategy is proposed by independent system operator (ISO) for the generation companies (GENCOs) and distribution companies (DISCOs) to maximize profit in day-ahead (DA) market. The objective of the paper is to provide an effective bidding strategy for the simultaneous benefit to the GENCOs and DISCOs considering the risk environment. GENCOs and DISCOs are optimally scheduled to participate in the unit commitment problem to provide an estimated generated power and price. The generated power and market price are utilized for the bidding of the GENCOs and DISCOs to obtain profit in an uncertain market conditions such as line outages and generator outages. Risk cost is also determined for the participants in an uncertain market conditions. A tradeoff is maintained between the profit and risk cost for the participants by the risk parameter. The proposed methodology is applied to the modified IEEE 30 bus system to show the effectiveness of the approach.