Optimization of Electricity Markets Participation with Simulated Annealing

Conference paper
Part of the Advances in Intelligent Systems and Computing book series (AISC, volume 473)

Abstract

The electricity markets environment has changed completely with the introduction of renewable energy sources in the energy distribution systems. With such alterations, preventing the system from collapsing required the development of tools to avoid system failure. In this new market environment competitiveness increases, new and different power producers have emerged, each of them with different characteristics, although some are shared for all of them, such as the unpredictability. In order to battle the unpredictability, the power supplies of this nature are supported by techniques of artificial intelligence that enables them crucial information for participation in the energy markets. In electricity markets any player aims to get the best profit, but is necessary have knowledge of the future with a degree of confidence leading to possible build successful actions. With optimization techniques based on artificial intelligence it is possible to achieve results in considerable time so that producers are able to optimize their profits from the sale of Electricity. Nowadays, there are many optimization problems where there are no that cannot be solved with exact methods, or where deterministic methods are computationally too complex to implement. Heuristic optimization methods have, thus, become a promising solution. In this paper, a simulated annealing based approach is used to solve the portfolio optimization problem for multiple electricity markets participation. A case study based on real electricity markets data is presented, and the results using the proposed approach are compared to those achieved by a previous implementation using particle swarm optimization.

Keywords

Artificial intelligence Electricity markets Portfolio optimization Simulated annealing 

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Copyright information

© Springer International Publishing Switzerland 2016

Authors and Affiliations

  1. 1.GECAD – Research Group on Intelligent Engineering and Computing for Advanced Innovation and DevelopmentInstitute of Engineering, Polytechnic of Porto (ISEP/IPP)PortoPortugal

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