ABSTRACT
This chapter describes some studies carried out to investigate price-based unit commitment and price-based scheduling for Gencos utilizing a variety of approaches. The power industry has been under the process of deregulation around the world although the restructuring occurred under different circumstances for different countries. Electricity is a special commodity in that supply and demand must be matched instantaneously. Its special characteristics in storing, generation, and transmission make its prices more volatile than those of many other ordinary commodities. Market price forecasting techniques are required to support planning and operations activities of Gencos. Seasonal differences in the price data are confirmed by plotting the comparison between the average prices of each period on a monthly basis. The optimal generation at a particular moment is simply where the incremental generation cost equals the market price. The bid at marginal cost may be driven out of competition by bids from bigger generators with market power.
