Authors: S. Saeid Taheri; Seyed-Jalal Seyedshenava
Addresses: Department of Electrical Engineering, University of Mohaghegh Ardabili, Ardabil, Iran ' Department of Electrical Engineering, University of Mohaghegh Ardabili, Ardabil, Iran
Abstract: This paper proposes a bi-level model to assist a Generation company (GENCO) in its offering decision makings considering multi-period electricity auction. First, each problem has been presented in two separated optimisation models, and then the integrated model that contains the mentioned models has been generated using mathematical programs with equilibrium constraints (MPEC) modelling method. The bi-level formulation allows GENCO to consider a bi-objective optimisation problem in a single model considering interactions of each level on the other companies. In this model, a maximisation of GENCOs expected profit in the upper level and the maximisation of social welfare (SW) in the lower level as the objective function of the ISO is proposed. The proposed model has been applied to a six-bus test system and the accepted energy and utility bids have been presented and discussed at different cases. As a result, this paper shows the bi-level modelling method for a GENCO when ISO wants to maximise social welfare.
Keywords: multi-period modelling; mathematical programming; equilibrium constraints; MPEC; bi-level optimisation; strategic bidding; electricity generation companies; multi-period electricity auctions; profit; social welfare.
International Journal of Mathematical Modelling and Numerical Optimisation, 2016 Vol.7 No.3/4, pp.293 - 306
Received: 10 Oct 2015
Accepted: 28 Aug 2016
Published online: 27 Jan 2017 *