• DocumentCode
    1354084
  • Title

    Option pricing of spinning reserve in a deregulated electricity market

  • Author

    Rashidinejad, M. ; Song, Y.H. ; Javidi, M.H.

  • Author_Institution
    Inst. of Power Syst., Brunel Univ., Uxbridge, UK
  • Volume
    20
  • Issue
    7
  • fYear
    2000
  • fDate
    7/1/2000 12:00:00 AM
  • Firstpage
    39
  • Lastpage
    40
  • Abstract
    The new environment of deregulated electricity markets presents new challenges to the risk management of power systems. This letter reports on the development of an option market for spinning reserve when considering power system security and reliability constraints. The authors propose a three-phase computational method to derive the call option price and put option price for spinning reserve
  • Keywords
    costing; electricity supply industry; power system economics; power system reliability; power system security; risk management; tariffs; call option price; deregulated electricity market; option market; power system reliability constraints; power system security constraints; power systems; risk management; spinning reserve option pricing; three-phase computational method; Costs; Electricity supply industry; Electricity supply industry deregulation; ISO; Large Hadron Collider; Pricing; Procurement; Real time systems; Spinning; Strontium;
  • fLanguage
    English
  • Journal_Title
    Power Engineering Review, IEEE
  • Publisher
    ieee
  • ISSN
    0272-1724
  • Type

    jour

  • DOI
    10.1109/39.850432
  • Filename
    850432