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Unrivalled Electricity Trading & Bidding Optimization Solution

  • Real-time intraday and day-ahead trading and bidding optimization.
  • Maximize profit from trading, bidding, generation and selling to market operators &
    ISOs.
  • Trade automation, scheduling, and intraday and post-trade performance analysis.
  • Seamless integration of QR AI Forecaster for load and price forecasts.
Contact us to explore a free POC trial.

Bidding Optimizer overcomes complex challenges by computing optimal bids that maximize the plants’ gross margin or P&L across all forward (5-60 minutes) trading periods of the day. This 24/7 automated trading bot runs at each trading period with a runtime of just a few minutes each round.

Challenges

Clients’ profile. Merchant and load serving generators operating in real-time intraday and day-ahead (5 - 60 mins interval) ISO and RTO markets.

Targets:
1. Maximize trading profit by dynamically adjusting bidding every trading period to extract the maximum value from instantaneous changes (price and offer stack) in the market.
2. Implement real-time 24/7 trading in a web-platform allowing multiple traders and plants’ operators to login and manage & monitor, in specialized web-dashboards, the plants’ generation, scheduling, RTD, fuel, the bids to the ISO and their electronic submission, and send and receive data via APIs.
3. A full-feature, ready-for-use, standalone cloud solution that can be easily integrated with in-house ETRMs and ISOs via flexible APIs.

Client Profile- Thermal Power Generation

Bidding optimization Advanced Ecosystem

Our optimization methodology overcomes typical trading pitfalls that prevent profit maximization

Static bids solely driven by generation cost miss out on market opportunities:
  • Bids, priced unnecessarily higher than the marginal price, won’t be cleared for dispatch.
  • Bidding is a nonlinear path-dependent decision-making process. Bids of previous periods must be priced properly to allow ramping up or down to achieve optimal (max or min) dispatch at some later periods to fully capture any opportunity offered by price movements.
  • Modifying a plant’s bids in price or quantity can move the intersection of the system demand with the offer stack, and change the spot price and the plant’s dispatch. Sometimes the offer stack allows sizable jump opportunities near the intersection, and adjusting the bids judiciously can increase the spot price, while maintaining sufficient dispatch to increase profit.
Contact us to explore a free POC trial.

QR Bidding Optimizer Features

  • The solution computes, for a portfolio of power plants, optimal bids that maximize their collective gross margin or P&L, across every forward (5-60 minutes) trading period, in intraday and day-ahead energy and reserve markets. The solution also computes the expected cleared RTD and MQ for each plant and the spot market price resulting from the optimizer.
  • The outputs are computed at the resolution of the market, 5–60 mins.
  • Execution frequency of this automated trading bot can be every 15 to 60 mins, 24/7, with a runtime of just a few minutes each round.
  • No-coding optimization. A user-friendly web dashboard allows the configuration of a custom bidding/trading optimization model by its technical parameters, input data, each plant’s fuel, OPX costs, physical characteristics, and trading constraints.
  • Advanced bidding optimization platform with 2 algorithms (genetic computing and pattern search), linear and nonlinear constraint modeling, 30+ parameters and extensive data preprocessing routines.
  • QR Trading Performance Analysis. Detailed real-time and post-trade trading analysis dashboard compares the gross margin or P&L of the actual versus optimal scenarios: expected clearing dispatch and meter quantity resulting from the bids, and the corresponding generation cost and revenue from sale in the spot market.
  • QR Power Plant Manager allows the modeling of different asset types, data (capacity, RTD, meter, contracted capacity), physical characteristics and operational constraints, ramp, outages, heat-rate and power conversion. Detailed cash flow modeling capability for the cost, revenue, and gross margin of each asset, which is the optimization objective function. These also include multiple currencies, miscellaneous charges, and the plant’s commitments in terms of bilateral contracted capacity, reserves, and joint bidding provisions with a partner owner. The cash flow modeling is configurable to handle thermal, renewable, storage, and hydropower plants.
  • QR Bidding & Scheduler is seamlessly integrated with the optimizer to allow traders to load optimal bids, modify, validate and submit them electronically with a few mouse clicks to the ISO, in intraday and day-ahead trading of energy and reserves.
  • Risk management can be applied by controlling bid pricing strategies from conservative (taking less risk and acting as price-taker) to aggressive (taking more risk and attempting to set prices), or dynamically switching strategy depending on the spot price level through peak and off-peak periods.
  • Nonlinear constraints such as generation level-dependent ramp rates, heat rate, and spot price are inherent to bidding optimization. These are part of the core architecture of the optimizer.
  • The model incorporates outages, the bids of multiple partners jointly owning a plant, know-bids of other plants in the offer stack, and quantities sold in ancillary or day-ahead markets.
  • Our expert (MSc and PhD) optimization team configures, fine-tunes and deploys your bidding optimization models in record time and helps you maintain and calibrate them in time.
  • QR AI Forecaster is seamlessly integrated to provide forecasts of system demand, spot price and the offer stack for each forward trading period, while applying adjustments for outages, available capacity, holidays, quantities sold in the ancillary and DA market. narios: expected clearing dispatch and meter quantity resulting from the bids, and the corresponding generation cost and revenue from sale in the spot market.

Benefits

  • You can always start with a POC Trial where we back-test some of your trades against the optimal scenarios, and deduce how much QR Trading Optimizer can improve your P&L.
  • License what you need. You can license each component separately, depending on your needs, e.g., price forecasting, bidding & trading optimization, back-office settlement & billing or risk management.
  • Two flexible delivery options:
    • Trading Optimization as a Service. Our cloud platform and expert team do everything, and you receive, via API and in web dashboards, the desired outputs, e.g., price forecasts, optimal bidding & trading schedules every 10 minutes, 24/7. No software installation, hardware and IT resources are needed.
    • Software as a Service (SaaS) where we implement the system on a private cloud of your choosing, or on-site, and you control the data and the models.
  • Ready-to use platform. We offer a large number of especially designed algorithms and models for bidding gas, coal and diesel power plants. These can be used on your assets and markets with minor configuration.
  • Cost-effective pricing. Whether you use QR Trading Optimizer as a service or as SaaS, you pay one single annual subscription fee. The fee comprises the license, maintenance and upgrade releases. In no case will this solution cost anything, it can generate profits worth 10x its license cost.
  • P&L enhancement. QR Trading Optimizer considerably improves the trading P&L, or asset valuation.
    • Maximize profit from bidding, generation and selling in a power market or ISO. Maximize profit from bidding into reserve markets versus selling in the spot market.
    • Minimize plants ware and tear.
  • Expert team. In-house trading optimization models require extensive expert resources. Models are sensitive to myriads of constraints in assets & operations. QR Trading Optimizer was created as a universal optimization platform that could be configured for various operations. Our team of mathematician PhD experts closely work with clients to customize and maintain the optimization model that suits their asset portfolio.

Trading Optimization Case Studies & Video Demos

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Let's talk about your needs

We look forward to exploring the range of options for your projects. Please write to us and one of our project managers will get back to you at once.