Day-Ahead Self-Scheduling of a Transmission-Constrained GenCo With Variable Generation Units Using the Incomplete Market Information

In this paper, a self-generation scheduling method for a power generation company (GenCo) with renewable generation units is presented. In the proposed method, locational market prices (LMPs) are calculated using the incomplete information on competing market participants by simulating the ISO's market clearing program and considering the effect of physical limitations of transmission lines. The errors associated with forecasted LMP and renewable production are modeled in the GenCo's generation scheduling using a robust optimization approach. The scheduling problem is modeled as a mixed-integer linear programming which is solved by a CPLEX solver in GAMS. An eight-bus system is employed to illustrate the applications of the proposed method. The numerical results show the efficiency of proposed method to reduce the GenCo's financial risks pertaining to uncertain parameters in a competitive electricity market.