Optimal Electricity Supply Bidding by Markov Decision Process
نویسندگان
چکیده
The bidding decision making problem is studied from a supplier’s viewpoint in a spot market environment. The decision-making problem is formulated as a Markov Decision Process a discrete stochastic optimization method All other suppliers are modeled by their bidding parameters with corresponding probabilities. A systematic method is developed to calculate transition probabilities and rewards. A simplified market clearing system is also included in the implementation. A risk-neutral decision-maker is assumed, the optimal strategy is calculated to maximize the expected reward over a planning horizon. Simulation cases are used to illustrate the proposed method.
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