Numeric Study of Conventional Generators Strategic Bidding With Reliability Pricing Model Demand Curve in a Renewable-Integrated Capacity Market

The growth of renewable energy has disrupted energy markets, reducing profitability for conventional generators by lowering prices. Capacity markets have emerged to address this, offering stable revenue streams. This paper presents a numeric study for a capacity market that integrates RES and conventional generators, analysing how costs and bidding strategies affect market outcomes. A case study using the IEEE 6-bus system highlights the impact of cost variations and the role of zero-bid strategies in securing capacity market participation. The results emphasize cost efficiency and strategic bidding as critical for conventional generators' profitability in competitive, RES-driven markets.