Constructing bidding curves for a price-taking retailer in the norwegian electricity market

Author

Fleten, Stein-Erik ; Pettersen, Erling

Author_Institution

Dept. of Ind. Econ. & Technol. Manage., Norwegian Univ. of Sci. & Technol., Trondheim, Norway

Volume

20

Issue

2

fYear

2005

fDate

5/1/2005 12:00:00 AM

Firstpage

701

Lastpage

708

Abstract

We propose a stochastic linear programming model for constructing piecewise-linear bidding curves to be submitted to Nord Pool, which is the Nordic power exchange. We consider the case of a price-taking power marketer who supplies electricity to price-sensitive end users. The objective is to minimize the expected cost of purchasing power from the day-ahead energy market and the short-term balancing market. The model is illustrated using a case study with data from Norway.

Keywords

demand side management; linear programming; optimisation; piecewise linear techniques; power markets; power system economics; stochastic programming; Nordic power exchange; Norwegian electricity market; day-ahead energy market; demand-side bidding; piecewise liner bidding curves; price-taking retailer; stochastic linear programming model; stochastic optimization; Costs; Electricity supply industry; Helium; Industrial economics; Linear programming; Piecewise linear techniques; Power markets; Power system management; Stochastic processes; Technology management; Demand-side bidding; electricity markets; stochastic optimization;

fLanguage

English

Journal_Title

Power Systems, IEEE Transactions on

Publisher

ieee

ISSN

0885-8950

Type

jour

DOI

10.1109/TPWRS.2005.846082

Filename

1425563