A new optimal bidding strategy in power market

Nowadays, power generation companies are eager to build their appropriate bidding strategies for maximizing their profit in the new deregulating power market. In this paper, an optimization process is used to find the optimal production for forecasted price and several boundary prices which are defined based on different confidence level of price probability distribution. A given participant would select the most interesting prices related to its attitude depend on its degree of risk aversion to construct the bidding strategy. The main contribution of this work is a methodology to find a bidding strategy. The new optimal bidding strategy composed of curves with optimal offer blocks where only information related to forecasted demand and market-cleaning prices is required shows its superiority to others