2004 IEEE International Conference on Electric Utility Deregulation, Restructuring and Power Technologies (DRPT2004) April 2004 Hong
Kong
The Study of Congestion Influence on Bidding Strategy
Ming-Tong Ray, Member; IEEE, Hong-Jey Gow, and Sung-Ling Chen
Abstract-In this paper, the bidding strategy problem is
modeled as an optimization problem and the congestion’s
influence will be discussed in the bidding process. An
Immune AlgorithmflA) is presented to solve the bidding
strategy problem. IA is based on the operation of human
immune system. The immune system is a basic bio-defense
system against viruses and disease-causing organisms. This
complex defense mechanism combines genes to deal with
the inbreaking antigens. Using this heuristic algorithm, IA
has advantages and some characteristics to show a better
performance than many other algorithms. Numerical
analysis will clarify congestion’s influence on price and
bidding strategy.
Index Terms- Immune algorithm, Congestion influence,
IPP, Bidding strategy
I. Introduction
eregulated the power market creates competition
D and trading mechanism for Independent Power
producers(LPPs). IPPs will use the existing
transmission to sell power at a market price.
IPPs are also seeking chances to be connected the lower
price of existing transmission for obtaining their profits.
The existing transmission owner could be considered as
a third party to provide the electricity wheeling for
sellerhuyers. The electricity wheeling cost including the
congestion charges will affect the bid price of IPPs
under the deregulated environments. While IPPs provide
the power into the transmission system, the congestion
will influence the market clearing price during the
bidding process[ 13.
In the pool model, the Independent System
Operator(IS0) performs the power dispatch based on
bids to get a market clearing price(MCP)[2-31. Each
market participant bids its energy to expect the
optimizing its own benefit. If the bidding energy makes
the transmission congestion, I S 0 will intervene to
curtail a small percentage of the bidding energy until the
system is without security problems. A part of market
participants will be forced to curtail the power output for
satisfying the security limit. It is obvious that the benefit
gained of participants is affected by the congestion.
Ming-Tong Tsay and Sung-Ling Chen are with Department of
Electrical Engineering, Cheng Shiu University, Kaohsiung,
Taiwan, R.O.C. (e-mail:tsaymt@post.csu.edu.tw)
Hong-Jey Cow is with Graduate Institute of Mechatronical
Engineering, Cheng Shiu University, Kaohsiung, Taiwan,
R.O.C. (e-mail:jey@yahoo.com.tw)
252
In this case, the participants have opportunities to
re-submit the bids to IS0 for maximizing its own
benefit. A new bidding strategy by using Immune
Algorithm(L4) is proposed to effectively solve this
problem.
In the past, most researches have included the
congestion as constraints or ignored congestion in
bidding process. It is difficult to represent a practical
market rule. When the congestion occurs in the markets,
a noncompetitive situation will exist in the clearing
price auction. Choosing a bidding process with
considering congestion is complicated, especially
finding the best strategy in a world of uncertainty.
Mathematical methodologies used[4-81, such as
Lagrangian relation method, linear programming, game
theory, etc., have been proposed to solve this problem.
With the non-linearity and discrete nature considered in
bidding strategy, the problem becomes more difficult to
solve. Solution strategies proposed by most algorithms
may be faster, they are very often limited by the
problem structure and may diverge or could lead to a
local minimum. In this paper, the Immune
Algorithm(IA)[9-10] is adopted to this problem. IA is
based on the operation of human immune system. The
immune system is a basic bio-defense system against
viruses and disease-causing organisms. This complex
defense mechanism combines genes to deal with the
inbreaking antigens. Using this heuristic algorithm, IA
has advantages and some characteristics to show a better
performance than many other algorithms [ll-121.
In this paper, the bidding strategy problem is
modeled as an optimization problem and the
congestion’s influence will be discussed in the bidding
process. An Immune Algorithm(1A) is presented to solve
the bidding strategy problem. The profit’s deviations of
congestion’s influence for all participants are analyzed
in detail. Cases studied based on a modified 6-bus
system is presented as illustrations[ 131. Numerical
analysis will clarify congestion’s influence on price and
bidding strategy.
11. Model of Bidding Strategy
A. Bidding strategy without line flow constraints
The bidding problem consists of price offers and the
amount of loads to be satisfied in the competitive market.
The bid price curves for generators and customers are
quadratic convex and concave functions, respectively.
All participants submit a bidding strategy to maximize
the social welfare while satisfying various constraints.
The model of bidding strategy without line flow
constraints can be first formulated as
2004 IEEE International Conference on Electric Utility Deregulation, Restructuringand Power Technologies (DRPT2004) April 2004 Hong Kong

NL NG
max. Obj- f k = C B i ( d i ) - Cj(pj)
i=l j=1

1 t t REG,,,, is the regulated cost for generators. It can

C j (Pj = bj P) - 7 P j 41, P j
be found as REG,,,, = -Mi x (ECP - Bi (4+ Mi)) .
NG NL
3.t. p j = Cd, (2) Figure 1 shows the flowchart of the proposed approach.
j=1 i=l

p y-< p J. -< pmax

J (3) *line impedance
where, *upper/lower of generator
i, j :generator and customer index
NL :the number of customers
NG :the number of generators Optimal bidding strategy
C j :the cost( or bid) function of generator j by using IA

Bi :the benefit fimction of customer i

p i :bid quantities of generator j
DC Loadflow
di :bid quantities of customer i
p y :the lower and upper of generation output
Congestion management
Min AP~WAP
B. The regulation of bidding strategy by congestion AP,
When the power system occurs the congestion
after the bidding process, suppliers will regulate the
power output to meet the security constraints. In this T h e analysis of bidding
strategy and results
paper, a DC load flow model is used with a Q-V discussion
sub-problem and transmission line loss is neglected. The
curtailment algorithm can be formulated as
Figure 1. The flowchart of the proposed approach.

111. Solution algorithm

where AP=[M,,M2, ...,Mn]is the vector of the
supplier's curtailment. Mi is the increaseddecreased
output of generator i . If Mi>O, i -th supplier must
increase its output. denotes the line flow. W , which
is a diagonal weight matrix is set to 1 in this paper.
Ether increasing output or decreasing output, the
curtailed power must sum up to 0 such as Equation (6).
It is clear that the curtailed power will result in
the lost profits of suppliers and their cost must be
allocated among market participants. Thus, the new
bidding strategy will re-formulated as
max. ECPX(P*+ui)-cj(4
+M~)+REG,,,, (7)
(9)
A. Immune System
IA is one of the adaptive biological systems whose
hnction is to identify and to eliminate foreign viruses.
Fig. 2 shows the mechanism of immune system. As the
figure shows, there are four essential subsystem
including Antibody Recomposition System, Restraint
System, Memory System and Lymphatic System.
For the invading antigens or virus, lymphatic
system will identify the existence in pattern memory
system. If the pattern exists, the lymphocyte helps the
antibody recomposition system to produce the
corresponsive antibody through the clone proliferation
to eliminate the invading virus. Inversely, if the pattern
does not exist, this pattern must be stored in the memory
system, and then the recomposition system generates
new lymphocytes for this new species. In recomposition
system, the gene's operation includes crossover,
mutation and reproduction. There are two main cells in
the lymphatic system, the T- lymphocytes and B-
lymphocytes. The T- lymphocytes are produced by
thymus, and the B- lymphocytes are made by bone
marrow. New lymphocytes must be examined by the
restraint system to fit the biological constraint, and then
it will be memorized again and bred through the clone

253
2004 IEEE Intemational Conference on Electric Utility Deregulation, Restructuring and Power Technologies (DRPT2004) April 2004 Hong Kong
proliferation to eliminate the foreign antigen. The
immune system possesses four characteristics, that is,
selfhonself recognition, specificity, diversity and
memory. The selfhonself recognition will distinguish
the antigen by being inside or outside the body. The
specificity could classify various antigens. The diversity
could make different and unique response for different
antigens. If a same virus were infected again, the system
would bring about immunization.
-
Fig. 2 Immune System
IA is a search algorithm based on the mechanism
of nature selection and genetics. Antigens and
antibodies can be viewed as objective functions and
feasible solutions, respectively. The process of genetic
structure is similar to GA, including crossover, mutation,
and reproduction. IA was developed as follows.
1.1 Encoding
The coding scheme can be illustrated in Fig. 3,
where each antibody indicates a combination of
generation power output. The antibody is encoded as a
chromosome string, which is produced by equation (12).
When IA search is terminated, the chromosome will
then be decoded.
Generation power output
A Objfk is the objective function for the k-th
/ \
I I I I I I I I
Fig. 3. Chromosome string of the antibody
254
D2B : decimal to binary conversion
PGi : the i-th generation power output
PG ,P G Y : the upper and lower limit of i-th
generation power output
bit : the number of bits in a chromosome
3.3 Affinity and Diversity evaluation
Immune system generates different antibodies
according to the affinity recognization between antigens
and antibodies or between two antibodies. There are two
classes of affinity in IA. One is the affinity between
antigens and antibodies. It represents the combination
intensity between antigen and an antibody. The other
one is the affinity between two antibodies; it shows the
similarity between two antibodies. From Information
theory, the entropy can be applied to measure diversity
of antibodies. It can be computed by
where N is the number of antibodies, Pk is the
probability of the i-th allele coming out of the k-th allele.
For example, if all alleles at the k-th antibody are the
same, E k ( N )= 0. Thus the total diversity of the k-th
antibody is
1 M
E ( N ) =- C E k ( N ) (14)
M k=l
where M is the number of gene of the k-th antibody.
Two affinity forms must be taken into account in
the proposed RIA. One is the affinity between two
antibodies, i.e., j-th and k-th. It can be calculated by
(AfS6)'k = (1 + E(2))-' (15)
where E(2) is the diversity of the j-th and k-th
antibody only. Note that if two antibodies are the same,
(AflbYkis equal to 1. (Aflbb)ikis set between zero and one.
Another one is applied to investigate the affinity
between antibodies and antigens with
antibody. The affinity score of each antibody is obtained
by calculating the objective function and constraints. If
one or more variables violate their limits, the
corresponding chromosome will be put into the tabu list
to avoid generating the same infeasible solution again.
3.4 Antibody Recomposition
New chromosomes obtained from crossover and
mutation. Crossover is a structured recombination
operation by exchanging genes of two parent antibodies.
Mutation is the occasional random alteration of genes.
2004 IEEE Intemational Conference on Electric Utility Deregulation, Restructuring and Power Technologies (DFWT2004) April 2004 Hong Kong

The crossover process randomly (uniform are allocated by using proposed algorithm as shown in
distribution) selects two parents to exchange genes with Table 2. The social welfare is $23270.3 without
a crossover rate P,. The location of the gene within the considering congestion
chromosome is called Zoczis. The crossover point is also
randomly chosen from the loci. If one or both offspring
is infeasible, another mate will be chosen again for
crossover. The mutation process randomly (uniform
distribution) selects one parent with a mutation rate P,.
We could randomly select a locus to mutate. If the
offspring is infeasible, another parent will be chosen
until a feasible solution can be obtained.

3.5 Stopping Rule and Decisions

The process of generating new antibody with the
best affinity between antibody and antigen will continue
until the affinity values are optimized or the maximum
generation number is reached. The flowchart of IA
process is shown in Figure 4. Figure 5. A 5-bus Power System

SlLp I
---.-..-.-....
::
vata Collscllon
I:
t
-
.I-
---
-.-
- .I-------

Generators Cost functions($) ppI

"en ob,ec, fimcnon

antibodtcr power grnermon ofutility and each IPP

Memow Cell - store mud antibodies

Customers Profit function($) Peak load

Cust. 1 1OOd, - 0.175df 200MW
Affinity antigen 10 antibdies & antlbady 10 antibody
- Diversity antibody 10 memow cell & antibody to the gmup Cust. 2 I 1 1Odl - 0.15d; 150MW

Table 2. The social welfare without congestion.

(Output/Loadsl Cost($)
Gen. 1 1157.4172MWI 1285.5
Gen.2 1147.6328MWl 1201.2
Gen.3 144.9499MW I 368.0
Total cost for generators 350MW 2854.7
Cust. 1 200MW 13000
Cust. 2 150MW 13125

Social welfare($) 23270.3

Table 3 shows the line flow before and after

congestion management. From the Table 3, line ##4
Fig. 4 The flowchart of IA
8
violates the flow limit after bidding strategy and it is
regulated from 286.1281MW to 278.5620 after
congestion management.
IV. Case Study
Table 3. Line flow before and after congestion management
In this paper, a 5-bus power system with three Unit:MW
competitive generators and two customers ILinel Line flow after [ Line I Line flow after 1
interconnected by six transmission lines is used for test I
No. I bidding strategy limits [ congestion management
as shown in Figure 5. The associated bid functions and #I I 131.3263 I 280 I 136.8431
desired profits for participants are listed in Table 1. #2 [ 26.0909 [ 280 [ 25.9628
To analyze the congestion's influence on the #3 I -7.1696 280 I I -63.8716
bidding strategy and price, the situation is first #4 286.1281 280 278.5620
performed when the transmission line has not 37.7810 280 45.4751
#5
congestion. The bid quantities and cost for participants
#6 112.2302 280 104.53 53

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2004 E E E International Conference on Electric Utility Deregulation, Restructuring and Power Technologies (DRPT2004)April 2004 Hong Kong
Due to the line #4 is overload after bidding strategy,
IS0 has to curtail the power in order to keep the security
operation. The simulation results are summarized in
Table 4. Gen.2 curtails the output from 147.6328 MW to
77.8537MW and the lost profit is $712.8701. Similarly,
Gen.1 and Gen.2 increase the output for meeting the
load demand. The social welfare after congestion
management is $22294.173.
Table 4. The simulation results
Figure 6 illustrates the convergence characteristics
of IA for congestion management. An IBM PC with
P-IV 2.4 GHz CPU and 5 12MB SDRAM is used in our
test. The CPU time of 600 generations is 22s.
PWI
Figure 6 . The convergence characteristics of IA for
congestion management
V. Conclusion
Application of IA for bidding strategy approach is
proposed in this paper. In this approach, each participant
tries to maximize its profit with the help of information
announced by operator. The curtailment decisions are
performed to keep system operation within security
limits. It can be seen that the congestion will result in
lost profit of social welfare. The profit’s deviations of
congestion’s influence for all participants are analyzed
in detail. Numerical analysis will clarify congestion’s
influence on price and bidding strategy.
VI. Acknowledgment
Financial support for this work by the National
Science Council of R.O.C. under contract number
NSC9 1-22 13-E-230-013 is gratefully appreciated.
256
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