Multiobjective environmental/techno-economic approach for strategic bidding in energy markets

This paper describes a method for developing optimal bidding strategy based on a bilevel optimization, considering suppliers’ emission of pollutants. The proposed methodology employs supply function equilibrium (SFE) model to represent the strategic behavior of each supplier. Locational marginal pri...

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Bibliographic Details
Published inApplied energy Vol. 86; no. 4; pp. 496 - 504
Main Authors Vahidinasab, V., Jadid, S.
Format Journal Article
LanguageEnglish
Published Kidlington Elsevier Ltd 01.04.2009
Elsevier
SeriesApplied Energy
Subjects
Applied sciences
Bidding strategy
Economic data
Electric energy
Electricity market
Electricity market Bidding strategy Multiobjective optimization Pollution control Supply function equilibrium
Energy
Energy economics
Exact sciences and technology
General, economic and professional studies
Methodology. Modelling
Multiobjective optimization
Pollution control
Supply function equilibrium
Supply function equilibrium
Multiobjective optimization
Pollution control
Bidding strategy
Electricity market
Bidding
Electric energy transportation
Carbon dioxide
Energy economy
Multiobjective programming
Pollutant emission
Constrained optimization
Optimal strategy
Electricity
Optimal power flow
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ISSN0306-2619
1872-9118
DOI10.1016/j.apenergy.2008.08.014

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Summary:This paper describes a method for developing optimal bidding strategy based on a bilevel optimization, considering suppliers’ emission of pollutants. The proposed methodology employs supply function equilibrium (SFE) model to represent the strategic behavior of each supplier. Locational marginal pricing mechanism is also assumed for settling the market and calculating the supplier profit. It is modeled as a bilevel optimization problem in which the upper-level subproblem maximizes individual supplier payoff and the lower-level subproblem solves the Independent System Operator’s market clearing problem. In this paper, the multiobjective optimal power flow is used to solve market clearing mechanism with supplier emission of pollutants, as extra objectives, subject to the transmission limits and supplier physical constraints. To illustrate the proposed approach under different conditions an IEEE 30-bus test system together with a number of case studies are used.
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ISSN:0306-2619
1872-9118
DOI:10.1016/j.apenergy.2008.08.014