An evolutionary computation for supplier bidding strategy in electricity auction market

Abstract

The daily bidding strategy in a day-ahead electricity auction market is studied from a supplier's point of view. An improved evolution strategy is developed to evolve the bidding strategy and to maximize the supplier's profit in the long run. A perfectly competitive day-ahead electricity auction market, where no supplier possesses the market power and all suppliers winning the market are paid on their own bids, is assumed here. The dynamic and the incomplete information of the market are emphasized. An agent-based simulation method is presented in this paper. The simulation results show the feasibility of the proposed bidding strategy.