Strategic Bidding of Retailers in Wholesale Markets: Continuous Intraday Markets and Hybrid Forecast Methods
The deregulation process of the electricity sector has led to competition in wholesale and retail markets. In particular, retailers submit bids to wholesale markets to satisfy the energy needs associated with portfolios of end-use customers. This paper describes a strategic process for retailers bid...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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MDPI AG
2023-02-01
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| Series: | Sensors |
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| Online Access: | https://www.mdpi.com/1424-8220/23/3/1681 |
| _version_ | 1797623098839662592 |
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| author | Hugo Algarvio Fernando Lopes |
| author_facet | Hugo Algarvio Fernando Lopes |
| author_sort | Hugo Algarvio |
| collection | DOAJ |
| description | The deregulation process of the electricity sector has led to competition in wholesale and retail markets. In particular, retailers submit bids to wholesale markets to satisfy the energy needs associated with portfolios of end-use customers. This paper describes a strategic process for retailers bidding in a wholesale market composed of a day-ahead market, an intraday market, and a balancing market. It considers a market design that involves a hybrid model for the intraday market, based on daily auctions and a continuous procedure. The paper also presents a computational study to illustrate and test both the market design and the strategic bidding process of retailers. The results confirm the advantages of considering a continuous intraday market, show that bidding in short-term markets is more beneficial than bidding in medium-term markets, and indicate important aspects to consider when selecting customers to add to the portfolios of retailers. |
| first_indexed | 2024-03-11T09:23:51Z |
| format | Article |
| id | doaj.art-1ce874ab6c9a4e6ba102f77467746116 |
| institution | Directory Open Access Journal |
| issn | 1424-8220 |
| language | English |
| last_indexed | 2024-03-11T09:23:51Z |
| publishDate | 2023-02-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Sensors |
| spelling | doaj.art-1ce874ab6c9a4e6ba102f774677461162023-11-16T18:04:37ZengMDPI AGSensors1424-82202023-02-01233168110.3390/s23031681Strategic Bidding of Retailers in Wholesale Markets: Continuous Intraday Markets and Hybrid Forecast MethodsHugo Algarvio0Fernando Lopes1LNEG–National Laboratory of Energy and Geology, Est. Paço Lumiar 22, 1649-038 Lisbon, PortugalLNEG–National Laboratory of Energy and Geology, Est. Paço Lumiar 22, 1649-038 Lisbon, PortugalThe deregulation process of the electricity sector has led to competition in wholesale and retail markets. In particular, retailers submit bids to wholesale markets to satisfy the energy needs associated with portfolios of end-use customers. This paper describes a strategic process for retailers bidding in a wholesale market composed of a day-ahead market, an intraday market, and a balancing market. It considers a market design that involves a hybrid model for the intraday market, based on daily auctions and a continuous procedure. The paper also presents a computational study to illustrate and test both the market design and the strategic bidding process of retailers. The results confirm the advantages of considering a continuous intraday market, show that bidding in short-term markets is more beneficial than bidding in medium-term markets, and indicate important aspects to consider when selecting customers to add to the portfolios of retailers.https://www.mdpi.com/1424-8220/23/3/1681wholesale marketscontinuous intraday marketsretailersforecast methodsconsumers |
| spellingShingle | Hugo Algarvio Fernando Lopes Strategic Bidding of Retailers in Wholesale Markets: Continuous Intraday Markets and Hybrid Forecast Methods Sensors wholesale markets continuous intraday markets retailers forecast methods consumers |
| title | Strategic Bidding of Retailers in Wholesale Markets: Continuous Intraday Markets and Hybrid Forecast Methods |
| title_full | Strategic Bidding of Retailers in Wholesale Markets: Continuous Intraday Markets and Hybrid Forecast Methods |
| title_fullStr | Strategic Bidding of Retailers in Wholesale Markets: Continuous Intraday Markets and Hybrid Forecast Methods |
| title_full_unstemmed | Strategic Bidding of Retailers in Wholesale Markets: Continuous Intraday Markets and Hybrid Forecast Methods |
| title_short | Strategic Bidding of Retailers in Wholesale Markets: Continuous Intraday Markets and Hybrid Forecast Methods |
| title_sort | strategic bidding of retailers in wholesale markets continuous intraday markets and hybrid forecast methods |
| topic | wholesale markets continuous intraday markets retailers forecast methods consumers |
| url | https://www.mdpi.com/1424-8220/23/3/1681 |
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