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Bidding strategy optimisation in the electricity markets

Bidding strategy optimisation in the electricity markets

In a liberalised electricity market, such as is the case for the Nordic countries, electricity production levels and prices are determined via a market statement based on supply and demand bids provided by electricity producers and suppliers, and the major electricity consumers. In the case of electricity producers, an effective bidding strategy requires a thorough and comprehensive analysis of their own production systems, agreed market obligations, and forecasts of future developments in the power system.

Our work is in the following fields:

  • The coordinated optimisation of bidding curves as an aid to the production bidding process and production planning in the light of uncertainties linked to price and catchment run-off factors
  • Detailed modelling of the production system as an aid to hydropower producers. This is a precondition for an accurate valuation of generated resources and an effective bidding strategy
  • The implementation of models and associated computational algorithms in decision support tools

We typically carry out the following types of project:

  • The supply of the decision support tool (SHOP) that models spot bidding and the short-term planning of hydropower production
  • The development of tailored tool adaptations as an aid to producers facing specific challenges in their production system, or who require tailored functionality.
  • The further development of SHOP's functionality in response to market developments by means of long-term research projects carried out in collaboration with hydropower producers and research partners. An example of this is the MultiSharm project which is funded in part by the Research Council of Norway. In MultiSharm, functionality for spot market bidding is developed in the light of the influence of reserve, reserve power and intra-day markets.

Why choose SINTEF?
SINTEF is recognised both in Norway and internationally as a leader in the development of decision support tools for hydropower production planning. We have accumulated many decades of experience in the development of models – carried out in close consultation with players in the electricity sector. We supply and advance the development of the bidding and production planning tool (SHOP) that is used by approximately 25 hydropower producers, including those Norwegian producers that are responsible for about 80% of Norwegian electricity production.

Who are our clients?

  • Norwegian and international hydropower producers
  • The sector organisation Energy Norway

Software:

SHOP - Short-term Hydro Operation Planning
MultiSharm - Day-Ahead Bidding with Multiple Short-Term Markets

 

Research Scientist