A new GA-approach for optimizing bidding strategy viewpoint of profit maximization of a GENCO

Generation companies (GENCO) wish to maximize their profit while participate in the electricity market. In this paper, a GA approach is developed for solving GENCO profit maximization problem to determine optimal bidding strategy for GENCO in the day-ahead market. It is assumed that Each GENCO submit its own bid as pairs of price and quantity. Also, it was assumed that the sealed auction with a pay-as-bid MCP would be employed. Since, there are some complex constraints for GENCO to be taken into account; this is a non-convex problem which is difficult to solve by traditional optimization techniques. In this paper, problem is solved from view point of profit maximization of GENCO that consider both rivals' bid and profit functions. Therefore, there is a multi-objective function to solve. A simple example is designed and illustrated how GA-approach can tackle this problem efficiently.