Profit maximization of a generation company based on Biogeography based optimization

Prerna Jain, Arjit Agarwal, Nitin Gupta, Rohit Sharma, Umesh Paliwal, Rohit Bhakar

Research output: Chapter in Book/Report/Conference proceedingConference contribution

4 Citations (Scopus)

Abstract

In a deregulated electricity market, generating companies aim to maximize their profit, by bidding optimally in the day-ahead market, under incomplete information of the competing generators. This paper develops an optimal bidding strategy for a thermal generator, considering a nonlinear operating cost function. Each generating company offers block bid as price and quantity pairs and sealed auction with a pay-as-bid is employed. Rival bidding behavior is described using normal probability distribution function, and the optimal bidding strategy for a generation company is formulated as a stochastic optimization problem. This is solved using Monte Carlo Simulations with Biogeography based Optimization (BBO) approach. BBO is a new heuristic algorithm that retains the properties of all good solutions and improves the quality of poor solutions, in the entire population of feasible solutions. The effectiveness of the proposed method is tested on a sample system, and optimal bid quantities and prices are obtained.

Original languageEnglish
Title of host publicationIEEE Power and Energy Society General Meeting
DOIs
Publication statusPublished - 11 Dec 2012
Event2012 IEEE Power and Energy Society General Meeting, PES 2012 - San Diego, CA, UK United Kingdom
Duration: 22 Jul 201226 Jul 2012

Conference

Conference2012 IEEE Power and Energy Society General Meeting, PES 2012
CountryUK United Kingdom
CitySan Diego, CA
Period22/07/1226/07/12

Keywords

  • Bidding Strategy
  • Biogeography based optimization
  • Day Ahead Market
  • Monte Carlo Simulation
  • Normal Distributions

Fingerprint Dive into the research topics of 'Profit maximization of a generation company based on Biogeography based optimization'. Together they form a unique fingerprint.

  • Cite this

    Jain, P., Agarwal, A., Gupta, N., Sharma, R., Paliwal, U., & Bhakar, R. (2012). Profit maximization of a generation company based on Biogeography based optimization. In IEEE Power and Energy Society General Meeting [6345445] https://doi.org/10.1109/PESGM.2012.6345445