Optional forward contracts for electric power markets

Author

Gedra, Thomas W.

Author_Institution

Sch. of Electr. & Comput. Eng., Oklahoma State Univ., Stillwater, OK, USA

Volume

9

Issue

4

fYear

1994

fDate

11/1/1994 12:00:00 AM

Firstpage

1766

Lastpage

1773

Abstract

This paper extends the idea of callable forward contracts, which are potentially useful as demand-side (interruptible-load) contracts, to their supply-side analogues. Together, these contracts allow market participants to take advantage of flexibility in generation or consumption to obtain a monetary benefit, while simultaneously removing the risk of market price fluctuations. This paper also considers the effects of strategic behavior on the part of market participants in their contract sales/purchase decisions

Keywords

contracts; costing; demand side management; economics; electricity supply industry; power consumption; power systems; callable forward contracts; consumption flexibility; contract purchase decisions; contract sales decisions; demand-side contracts; dispatchable supply; electric power markets; generation flexibility; interruptible-load contracts; market price fluctuations; monetary benefit; optional forward contracts; spot pricing; strategic behavior; supply-side contracts; Fluctuations; Forward contracts; Instruments; Marketing and sales; Power engineering and energy; Power engineering computing; Power generation; Power generation economics; Power system economics; Pricing;

fLanguage

English

Journal_Title

Power Systems, IEEE Transactions on

Publisher

ieee

ISSN

0885-8950

Type

jour

DOI

10.1109/59.331429

Filename

331429