Title :
Bidding strategies in auctions for long-term electricity supply contracts for new capacity
Author :
Barroso, Luiz Augusto ; Street, Alexandre ; Granville, Sergio ; Bezerra, Bernardo
Author_Institution :
Power Syst. Res. (PSR), Rio de Janeiro
Abstract :
The objective of this work is to discuss the modeling of auctions of long-term electricity supply contracts for new capacity in Brazil. The modeling of risks such as price-quantity (hydrological) risk, project completion risk, environmental constraints, climate change and regulatory risks are discussed. An analytical model will be developed to price these risks and case studies will be presented for real projects that have participated in the Brazilian contract auctions for new capacity. We also discuss selection of projects with different risks.
Keywords :
commerce; contracts; electricity supply industry; power system management; risk management; Brazilian contract auctions; bidding strategies; climate change; environmental constraints; long-term electricity supply contracts; price-quantity risk; project completion risk; regulatory risks; Contracts; Auctions; Power system economics; auction theory; electricity market; energy supply contracts; investment;
Conference_Titel :
Power and Energy Society General Meeting - Conversion and Delivery of Electrical Energy in the 21st Century, 2008 IEEE
Conference_Location :
Pittsburgh, PA
Print_ISBN :
978-1-4244-1905-0
Electronic_ISBN :
1932-5517
DOI :
10.1109/PES.2008.4596231
