electricity markets

Pricing wind: a revenue adequate, cost recovering uniform auction for electricity markets with intermittent generation

  • Endre Bjorndal
  • Mette Bjorndal
  • Geoff Pritchard
  • Golbon Zakeri
    • Categories Applications - OR and Management Sciences, Stochastic Programming Tags , ,

    With greater penetration of renewable generation, the uncertainty faced in electricity markets has increased substantially. Conventionally, generators are assigned a pre-dispatch quantity in advance of real time, based on estimates of uncertain quantities. Expensive real time adjustments then need to be made to ensure demand is met, as uncertainty takes on a realization. We propose … Read more

    Risk-averse portfolio selection of renewable electricity generator investments in Brazil: An optimised multi-market commercialisation strategy

  • Sebastian Maier
  • Kenneth McKinnon
  • Alexandre Street
    • Categories Applications - Science and Engineering, Finance and Economics, Stochastic Programming Tags , , , ,

    Investment decisions in renewable energy sources such as small hydro, wind power, biomass and solar are frequently made in the context of enormous uncertainty surrounding both intermittent generation and the highly volatile electricity spot prices that are used for clearing of trades. This paper presents a new portfolio-based approach for selecting long-term investments in small-scale … Read more

    Transmission and Generation Investment in Electricity Markets: The Effects of Market Splitting and Network Fee Regimes

  • Veronika Grimm
  • Martin Schmidt
  • Alexander Martin
  • Weibelzahl Martin
  • Gregor Zöttl
    • Categories (Mixed) Integer Nonlinear Programming, Finance and Economics, Network Optimization Tags , , , , ,

    We propose an equilibrium model that allows to analyze the long-run impact of the regulatory environment on transmission line expansion by the regulator and investment in generation capacity by private firms in liberalized electricity markets. The model incorporates investment decisions of the transmission operator and private firms in expectation of an energy-only market and cost-based … Read more

    Temporal vs. Stochastic Granularity in Thermal Generation Capacity Planning with Wind Power

  • Audun Botterud
  • Shan Jin
  • Sarah M. Ryan
    • Categories Facility Planning and Design, Stochastic Programming Tags , , , ,

    We propose a stochastic generation expansion model, where we represent the long-term uncertainty in the availability and variability in the weekly wind pattern with multiple scenarios. Scenario reduction is conducted to select a representative set of scenarios for the long-term wind power uncertainty. We assume that the short-term wind forecast error induces an additional amount … Read more

    Real-Time Optimization Strategies for Building Systems

  • Victor M. Zavala
    • Categories Control Applications, Multi-Criteria Optimization, Nonlinear Optimization Tags , , , , ,

    We propose real-time optimization strategies for energy management in building systems. We have found that exploiting building-wide multivariable interactions between CO2 and humidity, pressure, occupancy, and temperature leads to significant reductions of energy intensity compared with traditional strategies. Our analysis indicates that it is possible to obtain energy savings of more than 50% compared with … Read more

    Leader-Follower Equilibria for Electric Power and NO_x Allowances Markets

  • Yihsu Chen
  • Sven Leyffer
  • Todd S. Munson
  • Benjamin Hobbs
    • Categories Complementarity and Variational Inequalities, Finance and Economics Tags , ,

    This paper investigates the ability of the largest producer in an electricity market to manipulate both the electricity and emission allowances markets to its advantage. A Stackelberg game to analyze this situation is constructed in which the largest firm plays the role of the leader, while the medium-sized firms are treated as Cournot followers with … Read more