Journal
ENERGY POLICY
Volume 38, Issue 1, Pages 234-242Publisher
ELSEVIER SCI LTD
DOI: 10.1016/j.enpol.2009.09.010
Keywords
Energy procurement; Information Cap Decision Theory (IGDT); Large consumer
Ask authors/readers for more resources
In the competitive electricity market, consumers seek strategies to meet their electricity needs at minimum cost and risk. This paper provides a technique based on Information Cap Decision Theory (IGDT) to assess different procurement strategies for large consumers. Supply sources include bilateral contracts, a limited self-generating facility, and the pool. It is considered that the pool price is uncertain and its volatility around the estimated value is modeled using an IGDT model. The proposed method does not minimize the procurement cost but assesses the risk aversion or risk-taking nature of some procurement strategies with regard to the minimum cost. Using this method. the robustness of experiencing costs higher than the expected one is optimized and the related strategy is determined. The proposed method deals with optimizing the opportunities to take advantage of low procurement costs or low pool prices. A case study is used to illustrate the proposed technique. (C) 2009 Elsevier Ltd. All rights reserved.
Authors
I am an author on this paper
Click your name to claim this paper and add it to your profile.
Reviews
Recommended
No Data Available