Study of impacts of physical contracts and financial contracts on bidding strategies of GENCOs

Xiaoling Chen, Y. He, Y. H. Song, Yosuke Nakanishi, Chikashi Nakanishi, Satoru Takahashi, Yoshinori Sekine

Research output: Contribution to journalArticle

16 Citations (Scopus)


This paper studies the impacts of physical contracts and financial contracts on the bidding strategies of GENCOs, including Physical Bilateral Contracts, Contracts for Difference (CfDs), Call Options and Put Options under discriminatory pricing mechanism. The integrated bidding decision model is applied, which has three main modules - probabilistic local marginal price simulator, market-oriented unit commitment model and multi-criteria decision system. The numerical results show that the GENCO will choose different bidding strategies if it holds different types of contract. The results also suggest that CfDs have the best performance for risk alleviation.

Original languageEnglish
Pages (from-to)715-723
Number of pages9
JournalInternational Journal of Electrical Power and Energy System
Issue number9
Publication statusPublished - 2004 Nov
Externally publishedYes



  • Bidding strategy
  • Contract
  • Electricity markets
  • Risk management

ASJC Scopus subject areas

  • Energy Engineering and Power Technology
  • Electrical and Electronic Engineering

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