Impacts of different numbers of bidding blocks on generation companies’ bidding strategies

Abstract

In view of stepwise bidding protocol that is commonly adopted in practical operated electricity market home and abroad,the impacts of different numbers of bidding blocks on the bidding strategies of generation companies are investigated.As a preliminary research,here,the generation companies,which act as price-taker,are taken as subject investigated.Firstly,the electricity price in the market is simulated by probabilistic methods,on this basis and by use of average probability of wins a multi-block bidding model that simulate optimal bidding strategy of generation company is built.Then,the impacts of both generation company's risk preference extent and market information asymmetry on the construction of generation company's optimal bidding strategy are researched.Finally,a numerical example is used to demonstrate the proposed model and method,with special emphasis on the impacts of different numbers of bidding blocks on the optimal bidding strategy of generation companies.