The biggest problem generators face is to optimally bid in multiple (e.g., 10) bands or blocks in an ISO. They often repeat static bids, some are successful and some miss the marginal bid, falling too short or too long, leading to losses and opportunity costs.
QR Bidding Optimization™
is automatically integrated with QR Generation Optimization™
. The latter first determines the generation level for every forward period the asset is forecasted to be in the money and to operate, including ramping shoulders. The bidding optimization then determines the set of bids (across multiple bands) that maximize the profit of generation's sales to the nodal spot market. This is done simultaneously for all forward periods across a day. When the plant is in the money, bidding optimization can act as a market taker by under bidding some competitors while bidding below the forecasted marginal bid to ensure higher dispatch. It can also act as a market maker and increase market prices by taking calculated risk and placing some bids, albeit of smaller quantities, at higher prices, withholding low price generation in order to push spot prices higher.