Methodology

 

The used methodology starts by analysing and understanding the problem in order to correctly formulate it. To do so several articles and research studies are read. Afterwards the problem is mathematically formulated. Then its formulation is tested via Matlab and Excel work sheets. 

 

When the problem formulation is completed a Matlab program that calculates the bids for the day-ahead Electrical  Energy market and for the Balancing Reserve Market is created. The program uses an Evolutionary Particle Swarm Opitmization (EPSO) algorithm to calculate the best offer for each hour of the day. Inside the EPSO a Monte Carlo simulation was implemented in order to calculate the mean revenue and the mean penalties of each bid.

 

By the end of the work the results of the created program are analysed.