Monte Carlo selection of the bilateral contracts in the Italian power Exchange

Author

Berizzi, A. ; Bovo, C. ; Delfanti, M. ; Pasquadibisceglie, M.S.

Author_Institution

Dipt. di Elettrotecnica, Politecnico di Milano

fYear

2006

fDate

11-15 June 2006

Firstpage

1

Lastpage

8

Abstract

In the Italian electricity market, the bilateral contracts are granted a scheduling priority within the market clearing process: for this reason, in order to perform a detailed market simulation, it is necessary to focus the attention also on the selection of the plants involved in the bilateral transactions. In this paper, a Monte Carlo approach is followed, based on two weights related to both the production cost and the curtailment risk. The choice of the most suitable set of weights is performed by a comparison between a market simulation run with the contracts and one run without the contracts

Keywords

Monte Carlo methods; contracts; power markets; power system economics; risk management; Italian power exchange; Monte Carlo approach; bilateral contracts; electricity market; production cost; scheduling priority; Contracts; Costs; Economic forecasting; Electricity supply industry; Monte Carlo methods; Power markets; Power systems; Production; Random processes; Testing; Bilateral Contracts; Day-ahead energy market; Monte Carlo method;

fLanguage

English

Publisher

ieee

Conference_Titel

Probabilistic Methods Applied to Power Systems, 2006. PMAPS 2006. International Conference on

Conference_Location

Stockholm

Print_ISBN

978-91-7178-585-5

Type

conf

DOI

10.1109/PMAPS.2006.360217

Filename

4202229