Bidding Strategy for Day-Ahead and Real-Time Markets Based on Newsvendor Method in Electricity Markets

Abstract

The electrical power system has the uncertainty in its operation process, from this brings the demand forecast can with actual demand existence certain deviation. The balanced from the electricity generation and the load demand may brought to be, by using of the day-ahead and real-time electricity market transaction mechanism and the demand real-time adjustment electricity generation. At the same time, to manifest the demand-side fully in the market competition function, a revised bidding strategy was studied for the demand-side under the day-ahead and real-time market, making use of two stage decision method of the newsvendor problem. The example had indicated this method had feasible.