December 2004

10
R. Rajaraman. “Optimal Bidding Strategies in Electricity Markets”
Example 2
•Two periods with a single energy market.
•The hydro reservoir has 100 MWh of energy.
•No inflow into the reservoir
•The cost of producing energy is zero.
•At the end of two periods, the generator must have no energy left.
•The minimum and maximum hourly power limits are 0 and 200 MW respectively.
•The generator is a price-taker.