OPTIMAL BIDDING STRATEGY OF COMBINED HEAT AND POWER SYSTEM IN ELECTRICITY MARKET

In an electricity market, every generation company (GENCO) attempts to maximize profit according to other participants bidding behaviours and power systems operating conditions. Also, for the purposes of increasing economic profit, energy efficient combined heat and power (CHP) units can be integrated with conventional separate heat and power production units to meet heat and power demands. The goal of this study is to examine the optimal bidding strategy problem for GENCOs with CHP-thermal-heat only system in energy market based on a heuristic optimization algorithm. The heuristic optimization algorithm used in this study is successfully applied for validation and, it is determined that the heuristic optimization algorithm improves profits of a GENCO by ۴.۱۵-۴۷.۹۵% and ۲۰.۸۴-۳۱.۳۰% in single-sided and double-sided auctions, respectively. Also, the utilization of CHP units results in higher profit in single and double-sided auctions.

Keywords:

Bidding strategy , Combined heat and power , Optimization , Unit commitment.