Day Ahead Energy Market Using Firefly Algorithm

In this paper, the bidding strategy is discussed to achieve maximum profit of generating companies (GENCO's) in deregulated market. The profit is maximized by changing their bid coefficient value based on the market demand. The rival values are predicted by the probability density function (PDF). The GENCO's which is trying to maximize its profit, optimize its bid value using Firefly Algorithm (FA). This algorithm is applied for single sided auction markets to maximize the social welfare. The effectiveness of this algorithm is tested for six generating units with single and multi hour trading period.