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Multiobjective environmental/techno-economic approach for strategic bidding in energy markets

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  • Vahidinasab, V.
  • Jadid, S.

Abstract

This paper describes a method for developing optimal bidding strategy based on a bilevel optimization, considering suppliers' emission of pollutants. The proposed methodology employs supply function equilibrium (SFE) model to represent the strategic behavior of each supplier. Locational marginal pricing mechanism is also assumed for settling the market and calculating the supplier profit. It is modeled as a bilevel optimization problem in which the upper-level subproblem maximizes individual supplier payoff and the lower-level subproblem solves the Independent System Operator's market clearing problem. In this paper, the multiobjective optimal power flow is used to solve market clearing mechanism with supplier emission of pollutants, as extra objectives, subject to the transmission limits and supplier physical constraints. To illustrate the proposed approach under different conditions an IEEE 30-bus test system together with a number of case studies are used.

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  • Vahidinasab, V. & Jadid, S., 2009. "Multiobjective environmental/techno-economic approach for strategic bidding in energy markets," Applied Energy, Elsevier, vol. 86(4), pages 496-504, April.
    • Handle: RePEc:eee:appene:v:86:y:2009:i:4:p:496-504
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    References listed on IDEAS

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    1. Klemperer, Paul D & Meyer, Margaret A, 1989. "Supply Function Equilibria in Oligopoly under Uncertainty," Econometrica, Econometric Society, vol. 57(6), pages 1243-1277, November.
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    4. Li, Gong & Shi, Jing & Qu, Xiuli, 2011. "Modeling methods for GenCo bidding strategy optimization in the liberalized electricity spot market–A state-of-the-art review," Energy, Elsevier, vol. 36(8), pages 4686-4700.
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    14. Chang, Hsueh-Hsien & Yang, Hong-Tzer, 2009. "Applying a non-intrusive energy-management system to economic dispatch for a cogeneration system and power utility," Applied Energy, Elsevier, vol. 86(11), pages 2335-2343, November.
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    16. Kuo, Cheng-Chien, 2010. "Wind energy dispatch considering environmental and economic factors," Renewable Energy, Elsevier, vol. 35(10), pages 2217-2227.
    17. Roche, Robin & Idoumghar, Lhassane & Suryanarayanan, Siddharth & Daggag, Mounir & Solacolu, Christian-Anghel & Miraoui, Abdellatif, 2013. "A flexible and efficient multi-agent gas turbine power plant energy management system with economic and environmental constraints," Applied Energy, Elsevier, vol. 101(C), pages 644-654.
    18. Vithayasrichareon, Peerapat & MacGill, Iain F., 2014. "Incorporating short-term operational plant constraints into assessments of future electricity generation portfolios," Applied Energy, Elsevier, vol. 128(C), pages 144-155.
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