Minimizing forced outage risk in generator bidding

Dibyendu Das, Bruce F. Wollenberg

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

Competition in power markets has exposed the participating companies to physical and financial uncertainties. A random outage after acceptance of bids by the ISO forces a generator to buy power from the real-time hourly spot market and sell to the ISO at the set day-ahead market clearing price, incurring losses if the real-time hourly spot market is expensive. This paper assesses the financial risk of the generators using risk profiles and VaRs. A risk minimization module is developed which derives optimum bidding strategies of the generator company such that the estimated total earning is maximized keeping the VaR below a tolerable limit.

Original languageEnglish (US)
Title of host publication2004 International Conference on Probabilistic Methods Applied to Power Systems
Pages427-432
Number of pages6
StatePublished - Dec 1 2004
Event2004 International Conference on Probabilistic Methods Applied to Power Systems - Ames, IA, United States
Duration: Sep 12 2004Sep 16 2004

Publication series

Name2004 International Conference on Probabilistic Methods Applied to Power Systems

Other

Other2004 International Conference on Probabilistic Methods Applied to Power Systems
Country/TerritoryUnited States
CityAmes, IA
Period9/12/049/16/04

Keywords

  • Expected Revenue
  • Risk Profile
  • Value at Risk (VaR)

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