A Game Theoretical Approach Based Bidding Strategy Optimization for Power Producers in Power Markets with Renewable Electricity
In a competitive electricity market with substantial involvement of renewable electricity, maximizing profits by optimizing bidding strategies is crucial to different power producers including conventional power plants and renewable ones. This paper proposes a game-theoretic bidding optimization met...
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doaj-d2f9c0b173d142919f71d5c868049d772020-11-25T00:19:22ZengMDPI AGEnergies1996-10732017-05-0110562710.3390/en10050627en10050627A Game Theoretical Approach Based Bidding Strategy Optimization for Power Producers in Power Markets with Renewable ElectricityYi Tang0Jing Ling1Tingting Ma2Ning Chen3Xiaofeng Liu4Bingtuan Gao5School of Electrical Engineering, Southeast University, Nanjing 210096, ChinaSchool of Electrical Engineering, Southeast University, Nanjing 210096, ChinaSchool of Electrical Engineering, Southeast University, Nanjing 210096, ChinaChina Electric Power Research Institute, Nanjing 210003, ChinaSchool of Electrical Engineering, Southeast University, Nanjing 210096, ChinaSchool of Electrical Engineering, Southeast University, Nanjing 210096, ChinaIn a competitive electricity market with substantial involvement of renewable electricity, maximizing profits by optimizing bidding strategies is crucial to different power producers including conventional power plants and renewable ones. This paper proposes a game-theoretic bidding optimization method based on bi-level programming, where power producers are at the upper level and utility companies are at the lower level. The competition among the multiple power producers is formulated as a non-cooperative game in which bidding curves are their strategies, while uniform clearing pricing is considered for utility companies represented by an independent system operator. Consequently, based on the formulated game model, the bidding strategies for power producers are optimized for the day-ahead market and the intraday market with considering the properties of renewable energy; and the clearing pricing for the utility companies, with respect to the power quantity from different power producers, is optimized simultaneously. Furthermore, a distributed algorithm is provided to search the solution of the generalized Nash equilibrium. Finally, simulation results were performed and discussed to verify the feasibility and effectiveness of the proposed non-cooperative game-based bi-level optimization approach.http://www.mdpi.com/1996-1073/10/5/627bidding strategynon-cooperative gamecompetitive electricity marketbi-level optimization |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Yi Tang Jing Ling Tingting Ma Ning Chen Xiaofeng Liu Bingtuan Gao |
spellingShingle |
Yi Tang Jing Ling Tingting Ma Ning Chen Xiaofeng Liu Bingtuan Gao A Game Theoretical Approach Based Bidding Strategy Optimization for Power Producers in Power Markets with Renewable Electricity Energies bidding strategy non-cooperative game competitive electricity market bi-level optimization |
author_facet |
Yi Tang Jing Ling Tingting Ma Ning Chen Xiaofeng Liu Bingtuan Gao |
author_sort |
Yi Tang |
title |
A Game Theoretical Approach Based Bidding Strategy Optimization for Power Producers in Power Markets with Renewable Electricity |
title_short |
A Game Theoretical Approach Based Bidding Strategy Optimization for Power Producers in Power Markets with Renewable Electricity |
title_full |
A Game Theoretical Approach Based Bidding Strategy Optimization for Power Producers in Power Markets with Renewable Electricity |
title_fullStr |
A Game Theoretical Approach Based Bidding Strategy Optimization for Power Producers in Power Markets with Renewable Electricity |
title_full_unstemmed |
A Game Theoretical Approach Based Bidding Strategy Optimization for Power Producers in Power Markets with Renewable Electricity |
title_sort |
game theoretical approach based bidding strategy optimization for power producers in power markets with renewable electricity |
publisher |
MDPI AG |
series |
Energies |
issn |
1996-1073 |
publishDate |
2017-05-01 |
description |
In a competitive electricity market with substantial involvement of renewable electricity, maximizing profits by optimizing bidding strategies is crucial to different power producers including conventional power plants and renewable ones. This paper proposes a game-theoretic bidding optimization method based on bi-level programming, where power producers are at the upper level and utility companies are at the lower level. The competition among the multiple power producers is formulated as a non-cooperative game in which bidding curves are their strategies, while uniform clearing pricing is considered for utility companies represented by an independent system operator. Consequently, based on the formulated game model, the bidding strategies for power producers are optimized for the day-ahead market and the intraday market with considering the properties of renewable energy; and the clearing pricing for the utility companies, with respect to the power quantity from different power producers, is optimized simultaneously. Furthermore, a distributed algorithm is provided to search the solution of the generalized Nash equilibrium. Finally, simulation results were performed and discussed to verify the feasibility and effectiveness of the proposed non-cooperative game-based bi-level optimization approach. |
topic |
bidding strategy non-cooperative game competitive electricity market bi-level optimization |
url |
http://www.mdpi.com/1996-1073/10/5/627 |
work_keys_str_mv |
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