Strategic bidding in deregulated market using particle swarm optimization

Abstract

In this paper, particle swarm optimization method is proposed to determine the optimal bidding strategy in competitive electricity market. The market includes Generating companies (Genco's), large consumers who participate in demand side bidding, and small consumers whose demand is present in aggregate form. The effectiveness of the proposed method is tested with IEEE-30 bus system in which six generators and two large consumers are considered. Results are compared with the solutions obtained using the Genetic algorithm and Monte Carlo method.