Review on bidding strategies for renewable energy power producers participating in electricity spot markets

The increase in the installed capacity of renewable energy and the development of electricity spot markets make it an inevitable trend for renewable energy power producers (REPPs) to participate in the market competition. However, the output uncertainty of renewable energy will cause electricity deviation in bidding, making it hard for REPPs in bidding decision-making and weakening their competitiveness. Therefore, it is of great significance to carry out reasonable bidding strategies for REPPs. The purpose of strategic bidding for REPPs is to reduce the bidding risks and increase revenue. A literature review is carried out to clarify the research status of strategic bidding for REPPs. Unlike the existing review papers from the perspective of market rules, this review paper summarizes bidding strategies in the spot market from the viewpoint of REPPs’ decision-making. The relevant factors that directly affect the bidding decision-making are considered and reviewed. The output uncertainty prediction and modeling, the roles of REPPs in the spot market, the bidding strategies, and the algorithms for model solving are fully expounded. The advantages and disadvantages of different methods and strategies are clarified. According to the statistical results and comparison of the existing literature, conclusions are drawn, and future perspectives are suggested.