Bi-Level Optimization based Coordinated Bidding Strategy of a Supplier in Electricity Market

This paper presents a methodology to develop an optimal coordinated bidding strategy of a supplier considering hourly price-volume bid in Day-Ahead Energy Market (DAEM) and Balancing Energy market (BEM). In this work, a bi-level optimization problem has been proposed considering rivals’ bidding behavior, inter temporal constraints, and multi period auction. Lower level problem represents the market clearing process of System Operator (SO). Upper level problem represents the supplier’s profit maximization function, which is non linear. Therefore, Artificial Bee Colony (ABC) algorithm, a modern heuristic approach, has been used to obtain the best solution of the proposed bi-level optimization problem. The effectiveness of proposed method has been tested on 5-bus system. Results obtained using the ABC algorithm has been compared with those obtained using a Genetic Algorithm (GA) based approach.