Application of Firefly algorithm for solving Strategic bidding to maximize the Profit of IPPs in Electricity Market with Risk constraints
Pages : 37-44
The renovation of electric power systems plays a major role on economic and reliable operation of power system. Generation companies and tail end customers are undergoing a major multiple task of designing of proper operating methodologies. Therefore an exhaustive formulation of optimal bidding strategy becomes a subject of mater of generation companies and end consumers. In this paper an innovative approach for defining optimal bidding strategy is presented as a stochastic optimization problem and solved by Firefly algorithm.(FA). The Firefly Algorithm is a Meta heuristic, nature inspired, optimization algorithm which is based on the social flashing behavior of fireflies and has been introduced for the bidding problem to obtain the global optimal solution. The proposed Firefly algorithm effectively maximizes the GENCOs profit and benefit of large consumers. The impact of risk on the GENCOs is analyzed by introducing the factor λ. The proposed Firefly algorithm effectively maximizes the GENCOs profit. A numerical example with six suppliers is considered to illustrate the essential features of the proposed method and test results are tabulated. The simulation result shows that these approaches effectively maximize the Profit of Power suppliers, converge much faster and more reliable when compared with existing methods..
Keywords: Electricity market, optimal bidding, Profit maximization, risk analysis, Firefly algorithm.
Article published in International Journal of Current Engineering and Technology, Vol.4,No.1 (Feb- 2014)