Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
Thesis Guide:
Dr. Anoop Arya
Submitted By:
Komal Nigam
132113106
M.Tech (Power System)
 Indian power market
 Deregulation
 Indian power market development trend
 Transmission pricing
 Bidding
 Bidding cl...
Present Power System
- Heavily Relying on Fossil
Fuels
- Generation follows load
- Limited ICT use
- Limited Competition
F...
 Prior to the enactment of Electricity Act 2003 there was a
monopoly of government.
 A single entity I.e. government was...
5
GENCOS
IPP
Generation
+
Transmission
+
Distribution
Consumer
SEB
 After passing of Electricity Act 2003,the
competition came to the forefront, both
government and private companies have
...
7
CGS GENCO IPP
TraderTrader
Discom
Consumer
 Deregulation is the process of removing or reducing state regulations. It is
therefore opposite of regulation, which ref...
 Deregulation allows competitive energy suppliers to enter the
markets
 Deregulation gives consumers choice - the power ...
Single
buyers/sellers
Multi
buyers/sellers
Spot
trading
 With the introduction of restructuring into the electric
power industry, the price of electricity has become the
focus o...
 The pricing of the transmission service must meet the
following requirements:
Promote economic efficiency.
Compensate ...
EXAMPLE
◦ Let genenerator-1 has capacity of 100 MW with production
cost $75/MW per unit time. Demand is 100 MW. Bid of oth...
BIDDING STRATEGY IN ELECTRICITY MARKETS
 Theoretically, in perfect electricity markets, suppliers should bid at or very
c...
 Transmission constraints restricts the flow of power from low
cost node to high value nodes.
 Since transmission networ...
BIDDING STRATEGIES FORMULATIONS
1. Deterministic formulation
• Uncertainty are not included
• No temporalities
• All rival...
 Bidding is an offer (often competitive) of setting a
price one is willing to pay for something or a
demand that somethin...
 Buying or selling of energy takes place in
the form of bids
Bidding
• Agents submit bids (Quantity and cost) to either buy or sell
energy.
• Independent System Operator (ISO) matches the bids
• Bids below MCP are
accpeted
• Two types of payments
for bids
i) Uniform pricing
ii) Pay as bid
Strategic bidding:Aim is ...
 [1] This paper reviews the changes brought about
by the new act The Electricity Act 2003 and
analyses whether the new ac...
 [4] A brief literature survey of strategic
bidding in electricity markets is made in this
paper
 [5]this paper provides...
RESEARCH TOPIC PROBLEMS
M. Prabavathi & R.
Gnanadass (2013)
Bidding strategies for
Indian Restructured
Power Market
MCP & ...
 Determination of MCP and contributions of
generator from their bids having many
generators and many loads with variable
...
 Deregulation introduces competition in
electricity Power Market.
 Private players comes into picture,
advantageous for ...
•Review paper
work
•Publishing
DEC-JAN
•Simulation work
•Analysing
results
FEB-MAR •Final ppt
•Thesis
submission
APR-JUN
 [1] Bhattacharyya, S.C., 2005. The Electricity
Act 2003: will it transform the Indian power
sector? Utilities Policy 13 ...
 [4] A.K.David Fushuan Wen,” Strategic Bidding in
Competitive Electricity Markets: a Literature
Survey”, Proceedings of 2...
bidding strategies in indian restructured power market
bidding strategies in indian restructured power market
Upcoming SlideShare
Loading in …5
×

bidding strategies in indian restructured power market

2,540 views

Published on

bidding strategies in indian restructured power market

Published in: Engineering
  • Login to see the comments

bidding strategies in indian restructured power market

  1. 1. Thesis Guide: Dr. Anoop Arya Submitted By: Komal Nigam 132113106 M.Tech (Power System)
  2. 2.  Indian power market  Deregulation  Indian power market development trend  Transmission pricing  Bidding  Bidding classifications  Bidding in electricity market  Market clearing price  Literature review  Outcomes of literature review  Research objectives  Timeline  References
  3. 3. Present Power System - Heavily Relying on Fossil Fuels - Generation follows load - Limited ICT use - Limited Competition Future Power System - More use of RES, clean coal, nuclear power - Load follows Generation - More ICT & Smart meter use - More competition
  4. 4.  Prior to the enactment of Electricity Act 2003 there was a monopoly of government.  A single entity I.e. government was taking care of all electricity business such as generation, transmission and distribution.  Continued power shortages, poor operational performance and precarious financial situation of SEBs.
  5. 5. 5 GENCOS IPP Generation + Transmission + Distribution Consumer SEB
  6. 6.  After passing of Electricity Act 2003,the competition came to the forefront, both government and private companies have jurisdiction over it.  De-licensing of thermal generation including captive generation.  Non-discriminatory open access in transmission.  Deregulation comes into the picture
  7. 7. 7 CGS GENCO IPP TraderTrader Discom Consumer
  8. 8.  Deregulation is the process of removing or reducing state regulations. It is therefore opposite of regulation, which refers to the process of the government regulating certain activities.  The basic idea of restructuring includes introducing competitive energy markets, unbundling electricity services and opening access to the network.  The objective of restructuring is to provide better options for industrial contributors and to introduce revolutions with improved quality service and choice to the customers at economical prices  Energy prices are not regulated in these deregulated areas and consumers are not forced to receive supply from their utility.
  9. 9.  Deregulation allows competitive energy suppliers to enter the markets  Deregulation gives consumers choice - the power of the buyer. A deregulated market allows you to choose your commodity supplier.  Restructuring comprises different activities; changing existing companies corporation, privatization and dissociation
  10. 10. Single buyers/sellers Multi buyers/sellers Spot trading
  11. 11.  With the introduction of restructuring into the electric power industry, the price of electricity has become the focus of all activities in the power market.  The objective of transmission pricing is to recover all or part of the existing and new cost of transmission system.
  12. 12.  The pricing of the transmission service must meet the following requirements: Promote economic efficiency. Compensate grid companies fairly for providing transmission services. Allocate transmission cost reasonably among all transmission users. Maintain the reliability of transmission grid.
  13. 13. EXAMPLE ◦ Let genenerator-1 has capacity of 100 MW with production cost $75/MW per unit time. Demand is 100 MW. Bid of other gen at the same bus is  What should be bid of gen-1?  Option-1: bid at 100 $/MW ◦ win all demand of 100 MW. The profit will be 100(100-75)= 2500  Option-2: bid at 120 $MW ◦ win 50 MW capacity. The profit will be 50(120-75)= 2250  This shows the option-1 is preferred.  If second block of other gen. is 131 $/MW. Profit at bid price of 130 will be 50(130-75) = 2750. ◦ Now this is preferred. 50 MW 101 $/MW 50 MW 121 $/MW
  14. 14. BIDDING STRATEGY IN ELECTRICITY MARKETS  Theoretically, in perfect electricity markets, suppliers should bid at or very close to their marginal cost to maximize profit.  However, the electricity market is not perfectly competitive due to limited number of producers, therefore, power suppliers may seek to benefit by bidding a price higher than the marginal production cost.  When a supplier bids other than the marginal cost, to take advantages of imperfect market to increase their profit, this behavior is called strategic bidding.  The bidding strategy decision of an individual supplier can be affected by demand variation, generator cost characteristic, rivals bidding behavior, operating and regulatory constraints.  Each supplier developed bidding strategy to maximize their profit, considering own costs and constraints, rivals' bidding behavior and market rules.
  15. 15.  Transmission constraints restricts the flow of power from low cost node to high value nodes.  Since transmission network capacity is limited, it may happen necessary to select expensive bid to avoid transmission overloading. Therefore, constraints on the system will cause different prices at different nodes.  Revenue collected from the consumer will be more than the money paid to the generators in uniform market clearing price system.  The market based congestion management methods can be categorized as:  Locational marginal price  Zonal price  Market split  Counter flow re-dispatch BIDDING IN CONSTRAINED NETWORK
  16. 16. BIDDING STRATEGIES FORMULATIONS 1. Deterministic formulation • Uncertainty are not included • No temporalities • All rivals are clubbed together 2. Stochastic formulation •Uncertainty of bid price of rivals •Uncertainty of demand •Temporalities are considered •Rivals’ are not clubbed Bidding problem formulation depends upon the market model, type of bidding protocol, auction mechanism and estimation technique of rivals’ bidding behavior. Solution approaches 1. Conventional methods 2. Heuristic approaches
  17. 17.  Bidding is an offer (often competitive) of setting a price one is willing to pay for something or a demand that something be done. A price offer is called a bid.
  18. 18.  Buying or selling of energy takes place in the form of bids Bidding
  19. 19. • Agents submit bids (Quantity and cost) to either buy or sell energy. • Independent System Operator (ISO) matches the bids
  20. 20. • Bids below MCP are accpeted • Two types of payments for bids i) Uniform pricing ii) Pay as bid Strategic bidding:Aim is to construct best optimal bid knowing their own costs, technical constraints and their expectation of rival and market behavior
  21. 21.  [1] This paper reviews the changes brought about by the new act The Electricity Act 2003 and analyses whether the new act would be sufficient to transform the Indian power sector.  [2] this paper reviews about market clearing price and power dispatch of generators.  [3]in this paper discussed about the issues involved in introduction of competition in the power sector primarily through development of a market for bulk power.
  22. 22.  [4] A brief literature survey of strategic bidding in electricity markets is made in this paper  [5]this paper provides an overviews of the status of competition in various segments of the power system.  [6] This paper analyses a comprehensive literature on the state of the art research of bidding strategies in restructured electric power market.
  23. 23. RESEARCH TOPIC PROBLEMS M. Prabavathi & R. Gnanadass (2013) Bidding strategies for Indian Restructured Power Market MCP & contribution of generators but without any constraints. S. Soleymani, A.M. Ranjbar, & A.R. Shirani Strategic bidding of generating units in competitive electricity market with considering their reliability Used for simple networks.
  24. 24.  Determination of MCP and contributions of generator from their bids having many generators and many loads with variable demands using double sided auction, considering the constraints also.
  25. 25.  Deregulation introduces competition in electricity Power Market.  Private players comes into picture, advantageous for customers.  Bidding in Day-Ahead Electricity (DAM) Markets and Term Ahead Market(TAM) is to be analysed.  How the Power will dispatch of generators in the competitive environment.
  26. 26. •Review paper work •Publishing DEC-JAN •Simulation work •Analysing results FEB-MAR •Final ppt •Thesis submission APR-JUN
  27. 27.  [1] Bhattacharyya, S.C., 2005. The Electricity Act 2003: will it transform the Indian power sector? Utilities Policy 13 (3) 260–27  [2] M.Prabavathi, R.Gnanadass “Bidding Strategies for Indian Restructured power Market” (ICCPCT-2013),IEEE transactions pp. 568-573.  [3]Anoop Singh “power sector reform in India: current issues and prospects”,Energy Policy 34 (2006) 2480-2490.
  28. 28.  [4] A.K.David Fushuan Wen,” Strategic Bidding in Competitive Electricity Markets: a Literature Survey”, Proceedings of 2000 PES Summer Power Meeting, vol.4, pp.2168-2173, 2000  [5]Anoop Singh “Towards a competitive market for electricity and consumer choice in the Indian power sector”, Energy policy 38 (2010) 4196- 4208.  [6] M. Prabavathi, R. Gnanadass “Energy bidding strategies for restructured electricity market” Electrical Power and Energy Systems 64 (2015) 956–966

×