Optimal bidding strategy of Kohgiluyeh and Boyer Ahmad Distribution Company in electricity market

Distribution companies (DisCos) are considered as a retailer in the electricity market environment. In deregulated environment, the sale of energy to consumers is decoupled from the operation, maintenance and planning of distribution network. Iran's electricity market is the purchasing agency that DisCos purchase the energy consumed by their customers from the wholesale purchasing agency. It is assumed that they can purchase the required demand from different energy resources such as self-generating facilities, bilateral contracts and pool market. The profit function of Discos includes the revenue from sale energy to the customers minus the electricity purchase cost from different resources. This paper presents a stochastic programming for maximizing the profit function of Kohgiluyeh and Boyer Ahmad electricity distribution company (KBEDC) in Iran electricity market. The results show that the proposed method can effectively solve the problem so that reasonable amount of profit is obtained.

Keywords:

DisCos , Distributed generators , Electricity market , Stochastic programming , Profit.