Affiliation:
1. Swami Keshvanand Institute of Technology, Management, and Gramothan, Jaipur, India
Abstract
The successful implementation of the electricity market model has challenged the conventional way of operating the power system. In the electricity market model, power system is restructured to promote private companies to participate in a market structure where companies can sign a binding contract with large customers or can participate into pool market structure. Generation companies (GENCOs) and customers submit their bids in blocks in a pool market structure. GENCOs can achieve profit through strategic bidding due to the competitive nature of market structure. For this objective to realize, historical data of bidding of other participants should be modeled. This chapter addresses the application of dynamic programming, game theory and various AI based tools to form strategic bidding in the real time electricity market. To extend the analysis, a comparison of methods of designing bidding strategies has been presented. Based on this comparison, a critical review has been carried out to investigate the leading methods of strategic bidding.