Wind energy allocation strategies for long-term contracts in open energy markets

Genaro Longoria, Dingde Jiang, Alan Davy, Lei Shi

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

7 Citations (Scopus)

Abstract

Electricity deregulation and the increase of renewable energy penetration are playing an important role in developed countries. In this work, a study of the decision-making process of energy traders is presented. We develop a theoretical solution for the sourcing trade-off, that a utility company faces when designing its long-term energy allocation strategy. The market mechanism of long-term contracts, where power producers and retailers engage, is presented and analyzed through a game theoretic approach. By introducing the concept of indistinguishable players and binary games, we construct a non-cooperative game. Nash equilibrium and Expected Utility theory are used to determine the optimal strategies for utility companies to minimize their purchasing costs. We devise an energy portfolio, for a utility company, to hedge against intermittent electricity production and secondly an energy price negotiation scheme for bilateral contracts with intermittent energy producers.

Original languageEnglish
Title of host publication2016 IEEE International Conference on Renewable Energy Research and Applications, ICRERA 2016
PublisherInstitute of Electrical and Electronics Engineers Inc.
Pages783-788
Number of pages6
ISBN (Electronic)9781509033881
DOIs
Publication statusPublished - 21 Mar 2017
Event5th IEEE International Conference on Renewable Energy Research and Applications, ICRERA 2016 - Birmingham, United Kingdom
Duration: 20 Nov 201623 Nov 2016

Publication series

Name2016 IEEE International Conference on Renewable Energy Research and Applications, ICRERA 2016

Conference

Conference5th IEEE International Conference on Renewable Energy Research and Applications, ICRERA 2016
Country/TerritoryUnited Kingdom
CityBirmingham
Period20/11/201623/11/2016

Keywords

  • Binary games
  • Energy market
  • Indistinguishable players
  • Long-term contracts
  • Non-cooperative games

Fingerprint

Dive into the research topics of 'Wind energy allocation strategies for long-term contracts in open energy markets'. Together they form a unique fingerprint.

Cite this