Risk-constrained optimal bidding strategies for load server entities in transmission and distribution separated electricity markets

In competitive transmission and distribution separated electricity markets, load server entities (LSEs) are required to participate in market competition. The profits of selling electric power to end customers are greatly reduced by lack of supplied power. Or the high electric prices for purchasing electric power are paid out because of over-abundance of supplied power. Obviously, LSEs are faced with risks when they adopt bidding strategies. For the pool based transmission and distribution separated electricity market, on the premise of the supposed market transaction rules, a risk-constrained optimal bidding strategies frame for LSEs is constructed. A normal probability distribution function (pdf) is used to describe the bidding behaviors of rivals, and the problem is then formulated as a multi-objective stochastic optimization one, and solved by a direct optimization method. Finally, taken a market with 3 LSEs, 3 large consumers and 3 generation companies (Gencos) as an example, the proposed bidding strategy model is demonstrated by the simulation results