Author(s): Laia, Rui ; Pousinho, Hugo Miguel Inácio ; Melício, Rui ; Mendes, Victor
Date: 2015
Persistent ID: http://hdl.handle.net/10400.21/5731
Origin: Repositório Científico do Instituto Politécnico de Lisboa
Subject(s): Bidding strategy; Bilateral contracts; Emission allowances; Stochastic programming; Thermal self-scheduling
This paper is on the self-scheduling problem for a thermal power producer taking part in a pool-based electricity market as a price-taker, having bilateral contracts and emission-constrained. An approach based on stochastic mixed-integer linear programming approach is proposed for solving the self-scheduling problem. Uncertainty regarding electricity price is considered through a set of scenarios computed by simulation and scenario-reduction. Thermal units are modelled by variable costs, start-up costs and technical operating constraints, such as: forbidden operating zones, ramp up/down limits and minimum up/down time limits. A requirement on emission allowances to mitigate carbon footprint is modelled by a stochastic constraint. Supply functions for different emission allowance levels are accessed in order to establish the optimal bidding strategy. A case study is presented to illustrate the usefulness and the proficiency of the proposed approach in supporting biding strategies. (C) 2014 Elsevier Ltd. All rights reserved.
