Title :
Electricity insurance pricing for the bilateral contract market
Author :
Nitanan, Annop ; Audomvongseree, Kulyos
Author_Institution :
Dept. of Electr. Eng., Chulalongkorn Univ., Bangkok, Thailand
Abstract :
This paper proposes electricity insurance pricing for bilateral contract market, which is supervised by the independent system operation (ISO). The ISO controls all transactions occurring in the system as well as it can curtail some transactions in case there exists a congestion problem. The pricing scheme is based on the fair game principle. We use Monte Carlo simulation to generate contingency events; and use them to price the fair insurance premium. Application of this method to IEEE RTS-79 test system is shown as an example.
Keywords :
Monte Carlo methods; insurance; power markets; pricing; IEEE RTS-79 test system; ISO control; Monte Carlo simulation; bilateral contract market; electricity insurance pricing; fair game principle; independent system operation; ISO; Insurance; Markov processes; Monte Carlo methods; Pricing; Bilateral contract; Electricity insurance;
Conference_Titel :
Electrical Engineering/Electronics, Computer, Telecommunications and Information Technology (ECTI-CON), 2011 8th International Conference on
Conference_Location :
Khon Kaen
Print_ISBN :
978-1-4577-0425-3
DOI :
10.1109/ECTICON.2011.5947964
