Bidding strategies in auctions for long-term electricity supply contracts for new capacity

Author

Barroso, Luiz Augusto ; Street, Alexandre ; Granville, Sergio ; Bezerra, Bernardo

Author_Institution

Power Syst. Res. (PSR), Rio de Janeiro

fYear

2008

fDate

20-24 July 2008

Firstpage

1

Lastpage

8

Abstract

The objective of this work is to discuss the modeling of auctions of long-term electricity supply contracts for new capacity in Brazil. The modeling of risks such as price-quantity (hydrological) risk, project completion risk, environmental constraints, climate change and regulatory risks are discussed. An analytical model will be developed to price these risks and case studies will be presented for real projects that have participated in the Brazilian contract auctions for new capacity. We also discuss selection of projects with different risks.

Keywords

commerce; contracts; electricity supply industry; power system management; risk management; Brazilian contract auctions; bidding strategies; climate change; environmental constraints; long-term electricity supply contracts; price-quantity risk; project completion risk; regulatory risks; Contracts; Auctions; Power system economics; auction theory; electricity market; energy supply contracts; investment;

fLanguage

English

Publisher

ieee

Conference_Titel

Power and Energy Society General Meeting - Conversion and Delivery of Electrical Energy in the 21st Century, 2008 IEEE

Conference_Location

Pittsburgh, PA

ISSN

1932-5517

Print_ISBN

978-1-4244-1905-0

Electronic_ISBN

1932-5517

Type

conf

DOI

10.1109/PES.2008.4596231

Filename

4596231