Template-type: ReDIF-Paper 1.0
Author-Name: Francisco Javier Eransus
Author-Workplace-Name: Instituto Complutense de Análisis Económico (ICAE) – Facultad de Ciencias Económicas y Empresariales, 
	Universidad Complutense de Madrid

Title: A bidding strategy for minimizing the imbalances costs for renewable generators in Spanish power markets
Abstract: The aim of this paper is to suggest a simple methodology to be used by renewable power generators to bid in Spanish 
	markets in order to minimize the cost of their imbalances. As it is known, the optimal bid depends on the probability 
	distribution function of the energy to produce, of the probability distribution function of the future system imbalance and 
	of its expected cost. We assume simple methods for estimating any of these parameters and, using actual data of 2014, we 
	test the potential economic benefit for a wind generator from using our optimal bid instead of just the expected power 
	generation. We find evidence that Spanish wind generators savings would be from 7% to 26%.
Classification-JEL: C22, C44.
Keywords: Power markets, Renewable energy, Uncertainty, Optimal bidding, Forecasting.
Length: 11 pages 
Creation-Date: 2016-02
Number: 2016-13
X-File-Ref: http://america.sim.ucm.es/repec/ucm/ref/doicae1613.txt
File-URL: https://eprints.ucm.es/id/eprint/39134/1/1613.pdf
File-Format: Application/pdf
Handle: RePEc:ucm:doicae:1613