Bidding Curve Design for Hybrid Power Plants with Uncertain Solar Forecast

Abstract

This paper presents a novel bidding curve design algorithm tailored for hybrid power plants (HPPs) to participate in the wholesale electricity market. Utilizing forecasts for photovoltaic (PV) generation and available battery power, our algorithm strategically computes the bidding curve to maximize HPP profit while adeptly managing the inherent uncertainty associated with PV power generation. In addition, the introduction of the penalty cost in HPP bidding curves provides the system operator a tool to effectively manage the system-level uncertainty that caused by HPPs. Numerical analysis through Monte Carlo simulations confirms that our bidding curve methodology outperforms the benchmark across various scenarios.