Supplier side optimal bidding strategy for electricity market using bacterial foraging optimization algorithm

Abstract

In this article, bacterial foraging optimization (BFO) algorithm is developed for single side optimal bidding strategy in an electricity market. Optimal bidding strategy is one of the important functions in the electricity market along with forecasting of the electricity price and the profit based unit commitment. The prime objective of generating company (Genco) is to maximize their profit when they participate in the bidding process. The BFO algorithm has been used to maximize the probability density function (pdf). In the second stage the BFO algorithm is again applied to maximize the profit of the suppliers. The Proposed algorithm is developed in MATLAB (Version, 2019) and tested on standard test case available in the literature. Also, the simulation results are presented and compared. It is noticed that the proposed method yields the best results in terms of profit.