Conference paper
Stochastic framework for strategic decision-making of load-serving entities for day-ahead market
GECAD - Knowledge Eng. & Decision Support Res. Center, IPP - Polytech. of Porto, Porto, Portugal1
The deregulation of electricity markets has diversified the range of financial transaction modes between independent system operator (ISO), generation companies (GENCO) and load-serving entities (LSE) as the main interacting players of a day-ahead market (DAM). LSEs sell electricity to end-users and retail customers.
The LSE that owns distributed generation (DG) or energy storage units can supply part of its serving loads when the nodal price of electricity rises. This opportunity stimulates them to have storage or generation facilities at the buses with higher locational marginal prices (LMP). The short-term advantage of this model is reducing the risk of financial losses for LSEs in DAMs and its long-term benefit for the LSEs and the whole system is market power mitigation by virtually increasing the price elasticity of demand.
This model also enables the LSEs to manage the financial risks with a stochastic programming framework.
| Language: | English |
|---|---|
| Publisher: | IEEE |
| Year: | 2013 |
| Pages: | 1-6 |
| Proceedings: | 2013 IEEE Grenoble PowerTech |
| ISBN: | 1467356689 , 1467356697 , 9781467356688 and 9781467356695 |
| Types: | Conference paper |
| DOI: | 10.1109/PTC.2013.6652394 |
Contracts Demand-side Electricity Electricity supply industry GENCO ISO Load modeling Programming Stochastic processes day-ahead market decision making decision-making demand side management distributed generation distributed power generation electricity markets deregulation energy storage units financial transaction modes generation companies independent system operator load-serving entities locational marginal price locational marginal prices market power market power mitigation power markets pricing stochastic framework stochastic programming stochastic programming framework
