Power generation planning and risk management in a liberalised market

Author

Bjørkvoll, Thor ; Fleten, Stein-Erik ; Nowak, Matthias P. ; Tomasgard, Asgeir ; Wallace, Stein W.

Author_Institution

SINTEF Ind. Manage., Trondheim, Norway

Volume

1

fYear

2001

fDate

2001

Abstract

As the new power markets in many countries develop and (hopefully) become well-functioning, management of electricity utilities should change. We present a set of generation planning models adapted to a price taking generator in a competitive market situation. In this important special case, prices coordinate decisions of local plant managers, and hence, operational planning can be decentralised. Furthermore, we present a model for minimising the risk of the total electricity portfolio, which includes own generation resources and committed power contracts. This model captures both price risk and other sources of risk

Keywords

electricity supply industry; power generation planning; risk management; committed power contracts; competitive market situation; decentralised decision-making; electricity utilities management; generation planning models; liberalised electricity market; local plant managers decisions; own generation resources; power generation planning; price risk; price taking generator; risk management; total electricity portfolio risk minimisation; Contracts; Decision making; Electricity supply industry; Power generation; Power generation economics; Power generation planning; Power markets; Risk management; Stochastic processes; Uncertainty;

fLanguage

English

Publisher

ieee

Conference_Titel

Power Tech Proceedings, 2001 IEEE Porto

Conference_Location

Porto

Print_ISBN

0-7803-7139-9

Type

conf

DOI

10.1109/PTC.2001.964636

Filename

964636