New methods for electric energy contract decision making

Author

Liu, Chen-Ching ; Song, Haili ; Lawarrée, Jacques ; Dahlgren, Robert

Author_Institution

Dept. of Electr. Eng., Washington Univ., Seattle, WA, USA

fYear

2000

fDate

2000

Firstpage

125

Lastpage

129

Abstract

This paper is a summary of our research on contract decision making in a competitive electricity market. Bidding decision in a spot market is formulated as a Markov decision process that can be used to determine the price and amount of electricity for a supplier. Pricing in a bilateral market is calculated using the no-arbitrage principle and stochastic optimization. We also propose a method to minimize the uncertainty of profit

Keywords

Markov processes; contracts; costing; electricity supply industry; power system economics; stochastic processes; Markov decision process; bidding decision; bilateral contracts pricing; competitive electricity market; electric energy contract decision making; electricity amount determination; electricity price determination; no-arbitrage principle; profit uncertainty minimisation; spot market; stochastic optimization; supplier´s risk assessment; Contracts; Couplings; Decision making; Electricity supply industry; Power generation economics; Power industry; Power system economics; Pricing; Risk management; Uncertainty;

fLanguage

English

Publisher

ieee

Conference_Titel

Electric Utility Deregulation and Restructuring and Power Technologies, 2000. Proceedings. DRPT 2000. International Conference on

Conference_Location

London

Print_ISBN

0-7803-5902-X

Type

conf

DOI

10.1109/DRPT.2000.855650

Filename

855650