December 2004
R.
Rajaraman. “Optimal Bidding Strategies in Electricity Markets”
Optimal Bidding Strategy: Uncorrelated
Prices
•In period 1, bid all 100 MW
between $20/MWh and $30/MWh
•In period 2, bid the
remaining energy (if any is left) at less than $15/MWh
Expected profit for this strategy is $2850