Midterm colloquium Luuk Bartels

Optimal bidding in the day-ahead electricity market considering uncertain imbalance prices

Supervisor: T. Keviczky

Abstract:

The increasing share of cheap renewable energy sources is impacting the stability of the electricity grid. To maintain grid balance, electricity generation and consumption must always be met. However, demand peaks typically in the morning and early evening, while energy production is largely dependent on fluctuating solar and wind conditions. This mismatch and the low cost of solar and wind energy cause volatility in electricity prices. This research focuses on electricity trading in the day-ahead and imbalance markets, where bids in the day-ahead market must be made without knowing future imbalance prices. As a result, there is a need for accurate price forecasting and handling of the associated uncertainty. In this study, various methods for assessing imbalance price uncertainty will be explored and integrated into a day-ahead bidding optimization model aimed at maximizing profitability.