Risk hedging in electricity generation planning

Author

Tan, B.J. ; Lu, Z. ; Xu, Z. ; Song, J. ; Dong, Z.Y. ; Tang, W. ; Cai, H.W. ; Feng, Z.X.

Author_Institution

Sch. of Inf. Technol. & Electr. Eng., Queensland Univ., St. Lucia, Qld.

fYear

2005

fDate

Nov. 29 2005-Dec. 2 2005

Firstpage

116

Abstract

Since the power industry has entered into the deregulated era, and no participants in the market want them to be exposed completely to the price fluctuations, the risk management has become an essential tool to help power utilities to manage the risks. This paper reviews the risks in the context of electricity market, proposing a risk management framework with major instruments from energy derivative market. The attached case study illustrates the work flow for a generation company, with relevant discussions and analyses

Keywords

power generation economics; power generation planning; power markets; pricing; risk management; electricity generation planning; energy derivative market; generation company; power industry; power utilities; price fluctuations; risk hedging; risk management; Electricity supply industry; Electricity supply industry deregulation; Energy management; Fuels; Government; Monopoly; Power generation; Power industry; Risk analysis; Risk management; decision tree; risk; risk analysis;

fLanguage

English

Publisher

ieee

Conference_Titel

Power Engineering Conference, 2005. IPEC 2005. The 7th International

Conference_Location

Singapore

Print_ISBN

981-05-5702-7

Type

conf

DOI

10.1109/IPEC.2005.207074

Filename

1627363