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Optimal Bidding Strategy For Physical Market Participants With Virtual Bidding Capability In Day-Ahead Electricity Markets, Hossein Mehdipourpicha, Rui Bo
Optimal Bidding Strategy For Physical Market Participants With Virtual Bidding Capability In Day-Ahead Electricity Markets, Hossein Mehdipourpicha, Rui Bo
Electrical and Computer Engineering Faculty Research & Creative Works
Virtual bidding provides a mechanism for financial players to participate in wholesale day-ahead (DA) electricity markets. The price difference between DA and real-time (RT) markets creates financial arbitrage opportunities for financial players. Physical market participants (MP), referred to as participants with physical assets, can also take advantage of virtual bidding but in a different way, which is to further amplify the value of their physical assets. Therefore, this work proposes a model for such physical MPs to maximize the profits. This model employs a bi-level optimization approach, where the upper-level subproblem maximizes the total profit from both physical generations and …