Strategic Generation Companies bidding with uncertainty using interval arithmetic

Abstract

A proper assessment of the uncertainties resulting from the behavior of Generation Companies (GenCos) in wholesale electricity auctions helps to determine the best strategic bidding strategy. This paper proposes to optimize bidding strategies using interval arithmetic (IA). The resulting optimization problem is a multi-objective problem (MOP) which is solved by using the ε-constraint method. The new technique provides insights into market behavior with repeated bidding.