Bidding strategy of generation companies using PSO combined with SA method in the pay as bid markets

摘要: Abstract This paper proposes a new method that uses the combination of particle swarm optimization (PSO) and simulated annealing (SA) to predict bidding strategy Generating Companies (Gencos) in an electricity market where they have incomplete information about their opponents mechanism payment is pay as bid. In proposed methodology, Gencos prepare strategic bids according Supply Function Equilibrium (SFE) model change strategies until Nash equilibrium points are obtained. constitute central solution concept game theory computed with solving global problem. this computational intelligence technique introduced can be used solve procedure, based on PSO algorithm, which SA avoid becoming trapped local minima or maxima improve velocity’s function particles. The performance procedure compared results other techniques such PSO, Genetic Algorithm (GA), mathematical (GAMS/DICOPT). IEEE 39-bus test system employed illustrate verify method.