Strategic bidding for a large consumer Articles uri icon

publication date

  • March 2015

start page

  • 848

end page

  • 856

issue

  • 2

volume

  • 30

international standard serial number (ISSN)

  • 0885-8950

electronic international standard serial number (EISSN)

  • 1558-0679

abstract

  • The smart grid technology enables an increasing level of responsiveness on the demand side, facilitating demand serving entities—large consumers and retailers—to procure their electricity needs under the best conditions. Such entities generally exhibit a proactive role in the pool, seeking to procure their energy needs at minimum cost. Within this framework, we propose a mathematical model to help large consumers to derive bidding strategies to alter pool prices to their own benefit. Representing the uncertainty involved, we develop a stochastic complementarity model to derive bidding curves, and show the advantages of such bidding scheme with respect to non-strategic ones.

keywords

  • large consumer; mathematical program with equilibrium constraints (mpec); strategic bidding; uncertainty