December 2004

18
R. Rajaraman. “Optimal Bidding Strategies in Electricity Markets”
Energy-Limited Generators:
Energy Plus Reserve Markets
•Limited energy over multiple periods
•If you have uncertain energy and reserve price forecasts, then optimal bidding strategy depends on:
ØHow energy and reserve markets are cleared
ØHow you model uncertainty
ØAre prices among periods correlated?
ØAre energy and reserves prices correlated?
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