Sh. Gorgizadeh, A. Akbari Foroud, M. Amirahmadi,
Volume 8, Issue 2 (6-2012)
Abstract
This paper proposes a method for determining the price bidding strategies of
market participants consisting of Generation Companies (GENCOs) and Distribution
Companies (DISCOs) in a day-ahead electricity market, while taking into consideration the
load forecast uncertainty and demand response programs. The proposed algorithm tries to
find a Pareto optimal point for a risk neutral participant in the market. Because of the
complexity of the problem a stochastic method is used. In the proposed method, two
approaches are used simultaneously. First approach is Fuzzy Genetic Algorithm for finding
the best bidding strategies of market players, and another one is Mont-Carlo Method that
models the uncertainty of load in price determining algorithm. It is demonstrated that with
considering transmission flow constraints in the problem, load uncertainty can considerably
influences the profits of companies and so using the second part of the proposed algorithm
will be useful in such situation. It is also illustrated when there are no transmission flow
constraints, the effect of load uncertainty can be modeled without using a stochastic model.
The algorithm is finally tested on an 8 bus system.
