Risk constrained profit maximization under UI mechanism in India

The paper describes a risk constraint profit maximization model of a generator participating in day a-head electricity market under Availability Based Tariff regime (ABT) for Indian market. The Unscheduled Interchange (UI) mechanism introduced to control frequency deviation, thereby maintaining the security of the system in real time. The model described here considers the stochastic behavior of load schedules and unscheduled interchange along with other constraints on a season wise time frame. Stochastic programming technique is being used to solve the risk constraint expected profit maximization problem. Conditional Value at Risk (CVaR) for the distribution of daily profit is used as a risk trade off measure. The effectiveness of this approach is tested for power producers in electricity market. A numerical example of a generating station is being illustrated to show the revenue maximization problem.