IGDT Based Risk-constrained Strategic Bidding of GenCos Considering Bilateral Contracts

A new risk-constrained bidding curve construction method is presented in this paper. A Day-ahead energy market has been chosen for competition of GenCos and the InformationGap Decision Theory (IGDT) is used for modelling the Dayahead market price uncertainty and its corresponding risk. The bilateral contracts of the GenCo are also considered in the proposed framework. A Bi-level optimization problem isincorporated in the proposed method to guarantee a prespecifiedlevel of revenue. The proposed IGDT based method constructs the non-decreasing bidding curve while dispatchingunits based on the uncertain forecasted prices of the next-day market. The verification of the proposed method isdemonstrated by simulation of a GenCo with 5 thermal units invarious day-ahead markets.