PRICE TAKER BIDDING FOR POWER PLANTS IN TURKISH POWER MARKET

 

Ahmet Yücekaya, Zeki Ayağ, Funda Samanlıoğlu

 

Abstract

 

In Turkish power market, power firms bid daily into the day-ahead power market. Forecasted demand for each hour of the next day is announced so as the power supplier can submit offer for the demand. The auction mechanism and competition determine the equilibrium price and quantity for each hour. If the bid price of a company is below the market price, the offer of the company will be accepted and will be rewarded with the market price. The profit maximization for price-taker units under price uncertainty and blind auction rules requires careful preparations of bidding offers. In this paper, we use a normal distribution based market price generation method and a marginal cost based bid generation method to simulate the market for the company. The bidding strategy that will maximize the expected profit over price scenarios is selected to be submitted to the market. We illustrate the model for a coal unit in Turkish power market and present the results.

 

Lecture Notes in Management Science (2011) Vol. 3: 255-266

3rd International Conference on Applied Operational Research, Proceedings

© Tadbir Operational Research Group Ltd. All rights reserved.

www.tadbir.ca

 

ISSN 2008-0050 (Print)

ISSN 1927-0097 (Online)

 

ARTICLE OUTLINE

 

·         Introduction

·         Problem Formulation

·         Solution Approach

·         A Case Study For Turkish Power Market

·         Conclusion

·         References

 

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