On the Optimization Model for Electric Power Transaction in Power Market and its Heuristic Algorithm

In power market generation is separated from the electric grid, generators sell power only by bidding and grid company buy power from generators with the goal of minimizing the purchasing power's cost. The electricity transaction model in competitive environment includes continuous and discrete `0-1' variables, which make model solve difficultly. This paper builds discrete mix programming models in discriminatory pricing and uniform pricing mechanism. To solve the discrete mix programming models, the heuristic algorithms are proposed according to the models' characters. Sample shows the heuristic algorithm is applicable and effective