It is clear that the LCoE for RESs is higher than most other electric power sources. Therefore, if RESs try to bid according to their LCoE, they will be lose in most markets, but I found some papers that try to minimize the cost of a sample Mircrogrid in this way.
However, the operating cost of RESs are much lower than their LCoE, which is mostly related to their investment cost. Moreover, this LCoE is assigned according to their maximum Capacity Factor, according to the availability of the renewable energy. Thus, if available energy don't be harvested, a worse case will happen.
Thereby, I want to ask about their policy for bidding to sell their maximum generated power?
By economic theories, particularly microeconomic, any generator should bid based on its marginal cost, not based on LCoE. LCoE does not apply in bidding situation in electricity market. So, typically RES bid at zero $/MWh or even negative (due to other reasons) in electricity markets in the US and they are dispatched first!!! Made sense?
just because RESs bid at zero or negative bids, does NOT mean that they receive those prices. In nodal markets in the US, RESs receive the nodal price at their nodes which is based on system-wide supply and demand and transmission constraints. In fact, RESs make a lot of money in those markets.
You need to reassess the LCOE of various energy sources considering the external costs. These costs are mainly related to the possible environmental hazards associated with various sources. You may refer to,
https://www.researchgate.net/publication/316673700_Economics_of_Variable_Renewable_Sources_for_Electric_Power_Production
https://www.researchgate.net/publication/319653647_Improved_framework_for_techno-economical_optimization_of_wind_energy_production
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