Optimal Bidding Strategy for Generation Units Considering Price Uncertainty

In restructured power systems, generation companies should offer a power - price curve to the market operator to participate the auction. The proposed bidding curve has a considerable impact on the unit profit, especially in pay as bid markets.The optimal bidding curve depends on the final market clearing price which is uncertain in the stage of bidding. This paper proposes a novel approach for optimal bidding strategy considering the probabilistic nature of forecasted market clearing price. Numerical examples show satisfactory results in comparison with previous approaches.