Combined Bidding Scheme and Risk Assessment for Generation Company in Power Market
There are many kinds of modes in the power market, such as day-ahead market, real-time market, forward contract market and ancillary services market. As a generation company (Genco), to maximize profit or minimize risk value,they should seek an reasonable allocation of the generation capacity towards these modes. According to the modern portfolio theory, this paper develops a combined bidding optimal model based on utility function, and applies a risk assessment method of VaR (value at risk) to assess the risk of the scheme, deduces the minimum profit model and presents the method for solving this model.