Backtesting a Stochastic Coordinated Bidding Model for Sequential Electricity Markets

Abstract

Mainly, the balance in the power system is secured in the day-ahead market. Other markets with closing time closer to delivery have emerged to further secure the balance between supply and demand. The question is whether the hydropower producer should take opportunities in subsequent markets into account when placing bids in the day-ahead market, so-called coordinated bidding. The coordinated bidding strategy is modeled as a three-stage stochastic mixed-integer program. Furthermore, this strategy is evaluated and compared to a separated bidding strategy, which is the most used strategy by market participants today.