Initial Solution Heuristic for Portfolio Optimization of Electricity Markets Participation

  • Ricardo FaiaEmail author
  • Tiago Pinto
  • Zita Vale
Conference paper
Part of the Communications in Computer and Information Science book series (CCIS, volume 722)


Meta-heuristic search methods are used to find near optimal global solutions for difficult optimization problems. These meta-heuristic processes usually require some kind of knowledge to overcome the local optimum locations. One way to achieve diversification is to start the search procedure from a solution already obtained through another method. Since this solution is already validated the algorithm will converge easily to a greater global solution. In this work, several well-known meta-heuristics are used to solve the problem of electricity markets participation portfolio optimization. Their search performance is compared to the performance of a proposed hybrid method (ad-hoc heuristic to generate the initial solution, which is combined with the search method). The addressed problem is the portfolio optimization for energy markets participation, where there are different markets where it is possible to negotiate. In this way the result will be the optimal allocation of electricity in the different markets in order to obtain the maximum return quantified through the objective function.


Electricity markets Heuristic search Meta-heuristic optimization Portfolio optimization 


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Copyright information

© Springer International Publishing AG 2017

Authors and Affiliations

  1. 1.GECAD – Research Group on Intelligent Engineering and Computing for Advanced Innovation and Development, Institute of EngineeringPolytechnic of Porto (ISEP/IPP)PortoPortugal
  2. 2.BISITE Research CentreUniversity of Salamanca (US)SalamancaSpain

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