Energy bidding strategies for restructured electricity market

Many countries around the world have changed the economics of their electricity markets from monopolies to oligopolies in an effort to increase competition. The restructured electricity markets have introduced risk and uncertainty into a sector of the economy that was traditionally state-owned. Suppliers and customers use financial methods to manage the risk from market prices. The maximization of profit for power companies is highly associated with the bidding strategies. In order to maximize the profit, participants need suitable bidding models. In an open access electricity market, the bidding problem is a complicated task because of producer's uncertain behaviors and demand fluctuation. Therefore, developing bidding strategy is extremely important for electricity market participants to achieve the maximum profit. This paper analyses a comprehensive literature on the state of the art research of bidding strategies in restructured electric power market.