Review of application research on options in electricity market

Author

Wang, Ruiqing

Author_Institution

Sch. of Comput. & Inf. Eng., Anyang Normal Univ., Anyang, China

fYear

2010

fDate

26-28 June 2010

Firstpage

5227

Lastpage

5230

Abstract

Electricity market participants are faced with unprecedented risks under deregulated environment. Power option contract is one of the most effective instruments for electricity market players to avoid trading risks. Classification methods in accordance with the characteristics of power options are summed up, and the application research status of risk management, interruptible load pricing, congestion management, Ancillary services and power asset pricing is reviewed, and the basic framework for power options trading is proposed. The analysis for power options pricing shows that the development of complex mixed-model for power price and the methods to determine the theoretical prices for power options prices are the important research directions for the futures.

Keywords

power markets; pricing; risk management; ancillary services; complex mixed model; congestion management; electricity market; interruptible load pricing; power asset pricing; power option contract; risk management; trading risks; Application software; Automation; Electricity supply industry; Forward contracts; Operations research; Power engineering and energy; Power engineering computing; Power system modeling; Pricing; Risk management; classification method; electricity market; power options; pricing method; trading model;

fLanguage

English

Publisher

ieee

Conference_Titel

Mechanic Automation and Control Engineering (MACE), 2010 International Conference on

Conference_Location

Wuhan

Print_ISBN

978-1-4244-7737-1

Type

conf

DOI

10.1109/MACE.2010.5535430

Filename

5535430