1. THE ELECTRICITY PRODUCERS BID PRICES FORMATION BASED ON PROFITABILITY PhD student, M. sc. ing. Umbrashko I. PhD student, M. sc. ing. Varfolomeyeva R. Dr. sc. ing. prof. Mahnitko A.

2. Costs for hourly electricity production – energy resources cost, for example, fuel including delivery and technical preparation; – parameters of cost characteristics C(P i ).

3. The daily chart of an energy price change in a competitive electricity market

4. The technicaly-economicaly charecteristics of an agregate At the point O

5. The example

6. The profit and production volume comparison a)The price increases up to 45 Ls b)The price increases up to 48 Ls c)The price increases up to 50 Ls

7. The production profitability The maximal profitability

8. The profit and production volume comparison a)The price increases up to 45 Ls b)The price increases up to 48 Ls c)The price increases up to 50 Ls

9. The bid price The tree-step bid graph at profitability 17%

10. Conclusions The proposed method of producer’s bids formation of electrical energy has the following prerequisites for use in a competitive market. The offered method reflects mostly technical side of electricity production. This model allows for provider to determine the optimal behavior’s strategy on a daily interval through applied hourly bids with accounting equipment start-up characteristics. When is starting the balancing sector these principles of strategy making should be reconsidered taking into account additional factors as: adjustment range and maneuvering characteristics of the generators.

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