Profit maximization and optimal bidding strategies of GENCOs in electicity markets using self adaptive differential evolution

Abstract

This paper presents the solution for the suppliers’ aims to achieve profit more than the rivals participating in the competition. The supplier (decision maker) optimization problem is formulated and their bid quantities are optimized using Self adaptive Differential Evolution (SaDE). A six unit system is used to illustrate the methodology for a single trading period with both elastic and inelastic loads. The performance of the test systems under perfect and oligopoly market situations are compared to show the importance of optimization of bidding parameters in deregulated markets. Numerical results illustrate the effectiveness of the method in solving the supplier profit maximization problem.