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A stochastic programming model for the optimal electricity market bid problem with bilateral contracts for thermal and combined cycle units

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  • F.-Javier Heredia
  • Marcos Rider
  • Cristina Corchero

Abstract

This paper develops a stochastic programming model that integrates the most recent regulation rules of the Spanish peninsular system for bilateral contracts in the day-ahead optimal bid problem. Our model allows a price-taker generation company to decide the unit commitment of the thermal and combined cycle programming units, the economic dispatch of the bilateral contract between all the programming units and the optimal sale bid by observing the Spanish peninsular regulation. The model was solved using real data of a typical generation company and a set of scenarios for the Spanish market price. The results are reported and analyzed. Copyright Springer Science+Business Media, LLC 2012

Suggested Citation

  • F.-Javier Heredia & Marcos Rider & Cristina Corchero, 2012. "A stochastic programming model for the optimal electricity market bid problem with bilateral contracts for thermal and combined cycle units," Annals of Operations Research, Springer, vol. 193(1), pages 107-127, March.
    • Handle: RePEc:spr:annopr:v:193:y:2012:i:1:p:107-127:10.1007/s10479-011-0847-x
    DOI: 10.1007/s10479-011-0847-x
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    References listed on IDEAS

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    1. E. J. Anderson & A. B. Philpott, 2002. "Optimal Offer Construction in Electricity Markets," Mathematics of Operations Research, INFORMS, vol. 27(1), pages 82-100, February.
    2. Philip J. Neame & Andrew B. Philpott & Geoffrey Pritchard, 2003. "Offer Stack Optimization in Electricity Pool Markets," Operations Research, INFORMS, vol. 51(3), pages 397-408, June.
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    Cited by:

    1. Jeanne Aslak Petersen & Ditte Heide-Jørgensen & Nina Detlefsen & Trine Boomsma, 2016. "Short-term balancing of supply and demand in an electricity system: forecasting and scheduling," Annals of Operations Research, Springer, vol. 238(1), pages 449-473, March.
    2. Karami, M. & Shayanfar, H.A. & Aghaei, J. & Ahmadi, A., 2013. "Scenario-based security-constrained hydrothermal coordination with volatile wind power generation," Renewable and Sustainable Energy Reviews, Elsevier, vol. 28(C), pages 726-737.
    3. Wenming Xie & Yingxue Zhao & Zhibin Jiang & Pui-Sze Chow, 2016. "Optimizing product service system by franchise fee contracts under information asymmetry," Annals of Operations Research, Springer, vol. 240(2), pages 709-729, May.
    4. Jeanne Aslak Petersen & Ditte Mølgård Heide-Jørgensen & Nina Kildegaard Detlefsen & Trine Krogh Boomsma, 2016. "Short-term balancing of supply and demand in an electricity system: forecasting and scheduling," Annals of Operations Research, Springer, vol. 238(1), pages 449-473, March.
    5. Ma-Lin Song & Wei Zhang & Xiao-Ming Qiu, 2015. "Emissions trading system and supporting policies under an emissions reduction framework," Annals of Operations Research, Springer, vol. 228(1), pages 125-134, May.

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