December 2004

63
R. Rajaraman. “Optimal Bidding Strategies in Electricity Markets”
Conclusions (3)
•Optimal bidding strategy maximizes ex-ante expected profits
ØBecause prices are uncertain, optimal strategy can seem sub-optimal in hindsight
•Using these methods,
ØGenerators can better optimize profits and  audit past performance
ØRegulators can investigate market power allegations