Optimal price bidding strategy for competitive electricity market in Singapore

With the deregulation and restructuring of electricity industry, different techniques have been evolved to minimize operation costs and optimize profits of Gencos, Transcos and even Retailcos. This paper presents an appropriate bidding price strategy implemented to maximize Genco's profits in Singapore. The methodology considers integration of vesting contract demand and customer demands into the system demand. It makes use of statistical methods such as lognormal distribution, conjointly computed with a statistical quality control method, the acceptance function, to formulate an objective function. The proposed method is capable of generating the best price offer to customers, in order to optimize Gencos profits in this competitive electricity environment.