Title :
Option pricing of spinning reserve in a deregulated electricity market
Author :
Rashidinejad, M. ; Song, Y.H. ; Javidi, M.H.
Author_Institution :
Inst. of Power Syst., Brunel Univ., Uxbridge, UK
fDate :
7/1/2000 12:00:00 AM
Abstract :
The new environment of deregulated electricity markets presents new challenges to the risk management of power systems. This letter reports on the development of an option market for spinning reserve when considering power system security and reliability constraints. The authors propose a three-phase computational method to derive the call option price and put option price for spinning reserve
Keywords :
costing; electricity supply industry; power system economics; power system reliability; power system security; risk management; tariffs; call option price; deregulated electricity market; option market; power system reliability constraints; power system security constraints; power systems; risk management; spinning reserve option pricing; three-phase computational method; Costs; Electricity supply industry; Electricity supply industry deregulation; ISO; Large Hadron Collider; Pricing; Procurement; Real time systems; Spinning; Strontium;
Journal_Title :
Power Engineering Review, IEEE
