IDEAS home Printed from https://ideas.repec.org/a/eee/ejores/v246y2015i2p641-650.html
   My bibliography  Save this article

Optimal design of bilateral contracts for energy procurement

Author

Listed:
  • Gilbert, François
  • Anjos, Miguel F.
  • Marcotte, Patrice
  • Savard, Gilles

Abstract

In this paper, we consider the problem of optimizing the portfolio of an aggregator that interacts with the energy grid via bilateral contracts. The purpose of the contracts is to achieve the pointwise procurement of energy to the grid. The challenge raised by the coordination of scattered resources and the securing of obligations over the planning horizon is addressed through a twin-time scale model, where robust short term operational decisions are contingent on long term resource usage incentives that embed the full extent of contract specifications.

Suggested Citation

  • Gilbert, François & Anjos, Miguel F. & Marcotte, Patrice & Savard, Gilles, 2015. "Optimal design of bilateral contracts for energy procurement," European Journal of Operational Research, Elsevier, vol. 246(2), pages 641-650.
    • Handle: RePEc:eee:ejores:v:246:y:2015:i:2:p:641-650
    DOI: 10.1016/j.ejor.2015.04.050
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0377221715003707
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ejor.2015.04.050?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Moghaddam, M. Parsa & Abdollahi, A. & Rashidinejad, M., 2011. "Flexible demand response programs modeling in competitive electricity markets," Applied Energy, Elsevier, vol. 88(9), pages 3257-3269.
    2. Moosavian, S.M. & Rahim, N.A. & Selvaraj, J. & Solangi, K.H., 2013. "Energy policy to promote photovoltaic generation," Renewable and Sustainable Energy Reviews, Elsevier, vol. 25(C), pages 44-58.
    3. Pandžić, Hrvoje & Morales, Juan M. & Conejo, Antonio J. & Kuzle, Igor, 2013. "Offering model for a virtual power plant based on stochastic programming," Applied Energy, Elsevier, vol. 105(C), pages 282-292.
    4. Walawalkar, Rahul & Fernands, Stephen & Thakur, Netra & Chevva, Konda Reddy, 2010. "Evolution and current status of demand response (DR) in electricity markets: Insights from PJM and NYISO," Energy, Elsevier, vol. 35(4), pages 1553-1560.
    5. Bazilian, Morgan & Onyeji, Ijeoma & Liebreich, Michael & MacGill, Ian & Chase, Jennifer & Shah, Jigar & Gielen, Dolf & Arent, Doug & Landfear, Doug & Zhengrong, Shi, 2013. "Re-considering the economics of photovoltaic power," Renewable Energy, Elsevier, vol. 53(C), pages 329-338.
    6. Guglielmo Lulli & Suvrajeet Sen, 2004. "A Branch-and-Price Algorithm for Multistage Stochastic Integer Programming with Application to Stochastic Batch-Sizing Problems," Management Science, INFORMS, vol. 50(6), pages 786-796, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nojavan, Sayyad & Zare, Kazem & Mohammadi-Ivatloo, Behnam, 2017. "Optimal stochastic energy management of retailer based on selling price determination under smart grid environment in the presence of demand response program," Applied Energy, Elsevier, vol. 187(C), pages 449-464.
    2. Grimm, Veronika & Orlinskaya, Galina & Schewe, Lars & Schmidt, Martin & Zöttl, Gregor, 2021. "Optimal design of retailer-prosumer electricity tariffs using bilevel optimization," Omega, Elsevier, vol. 102(C).
    3. Psarras, John, 2016. "Multicriteria decision support to evaluate potential long-term natural gas supply alternatives: The case of GreeceAuthor-Name: Androulaki, Stella," European Journal of Operational Research, Elsevier, vol. 253(3), pages 791-810.
    4. Martin Bichler & Hans Ulrich Buhl & Johannes Knörr & Felipe Maldonado & Paul Schott & Stefan Waldherr & Martin Weibelzahl, 2022. "Electricity Markets in a Time of Change: A Call to Arms for Business Research," Schmalenbach Journal of Business Research, Springer, vol. 74(1), pages 77-102, March.
    5. Vinicius Neves Motta & Miguel F. Anjos & Michel Gendreau, 2023. "Optimal allocation of demand response considering transmission system congestion," Computational Management Science, Springer, vol. 20(1), pages 1-22, December.
    6. Wang, Tian & Deng, Shiming, 2019. "Multi-Period energy procurement policies for smart-grid communities with deferrable demand and supplementary uncertain power supplies," Omega, Elsevier, vol. 89(C), pages 212-226.
    7. Gärttner, Johannes & Flath, Christoph M. & Weinhardt, Christof, 2018. "Portfolio and contract design for demand response resources," European Journal of Operational Research, Elsevier, vol. 266(1), pages 340-353.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Keon Baek & Woong Ko & Jinho Kim, 2019. "Optimal Scheduling of Distributed Energy Resources in Residential Building under the Demand Response Commitment Contract," Energies, MDPI, vol. 12(14), pages 1-19, July.
    2. Zheng, Menglian & Meinrenken, Christoph J. & Lackner, Klaus S., 2014. "Agent-based model for electricity consumption and storage to evaluate economic viability of tariff arbitrage for residential sector demand response," Applied Energy, Elsevier, vol. 126(C), pages 297-306.
    3. Li, Lanlan & Gong, Chengzhu & Wang, Deyun & Zhu, Kejun, 2013. "Multi-agent simulation of the time-of-use pricing policy in an urban natural gas pipeline network: A case study of Zhengzhou," Energy, Elsevier, vol. 52(C), pages 37-43.
    4. Ferreira, Agmar & Kunh, Sheila S. & Fagnani, Kátia C. & De Souza, Tiago A. & Tonezer, Camila & Dos Santos, Geocris Rodrigues & Coimbra-Araújo, Carlos H., 2018. "Economic overview of the use and production of photovoltaic solar energy in brazil," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P1), pages 181-191.
    5. Robert Olszewski & Piotr Pałka & Agnieszka Wendland & Jacek Kamiński, 2019. "A Multi-Agent Social Gamification Model to Guide Sustainable Urban Photovoltaic Panels Installation Policies," Energies, MDPI, vol. 12(15), pages 1-27, August.
    6. Alasseri, Rajeev & Tripathi, Ashish & Joji Rao, T. & Sreekanth, K.J., 2017. "A review on implementation strategies for demand side management (DSM) in Kuwait through incentive-based demand response programs," Renewable and Sustainable Energy Reviews, Elsevier, vol. 77(C), pages 617-635.
    7. Partovi, Farzad & Nikzad, Mehdi & Mozafari, Babak & Ranjbar, Ali Mohamad, 2011. "A stochastic security approach to energy and spinning reserve scheduling considering demand response program," Energy, Elsevier, vol. 36(5), pages 3130-3137.
    8. Minjiao Zhang & Simge Küçükyavuz & Saumya Goel, 2014. "A Branch-and-Cut Method for Dynamic Decision Making Under Joint Chance Constraints," Management Science, INFORMS, vol. 60(5), pages 1317-1333, May.
    9. Pereira da Silva, Patrícia & Dantas, Guilherme & Pereira, Guillermo Ivan & Câmara, Lorrane & De Castro, Nivalde J., 2019. "Photovoltaic distributed generation – An international review on diffusion, support policies, and electricity sector regulatory adaptation," Renewable and Sustainable Energy Reviews, Elsevier, vol. 103(C), pages 30-39.
    10. Feuerriegel, Stefan & Neumann, Dirk, 2014. "Measuring the financial impact of demand response for electricity retailers," Energy Policy, Elsevier, vol. 65(C), pages 359-368.
    11. Christos N. Dimitriadis & Evangelos G. Tsimopoulos & Michael C. Georgiadis, 2021. "A Review on the Complementarity Modelling in Competitive Electricity Markets," Energies, MDPI, vol. 14(21), pages 1-27, November.
    12. Spiros Papaefthimiou, Manolis Souliotis, and Kostas Andriosopoulos, 2016. "Grid parity of solar energy: imminent fact or future's fiction," The Energy Journal, International Association for Energy Economics, vol. 0(Bollino-M).
    13. Liu, Yingqi, 2017. "Demand response and energy efficiency in the capacity resource procurement: Case studies of forward capacity markets in ISO New England, PJM and Great Britain," Energy Policy, Elsevier, vol. 100(C), pages 271-282.
    14. Bernadette Fina & Hans Auer, 2020. "Economic Viability of Renewable Energy Communities under the Framework of the Renewable Energy Directive Transposed to Austrian Law," Energies, MDPI, vol. 13(21), pages 1-31, November.
    15. Briguglio, Marie & Formosa, Glenn, 2017. "When households go solar: Determinants of uptake of a Photovoltaic Scheme and policy insights," Energy Policy, Elsevier, vol. 108(C), pages 154-162.
    16. Ondraczek, Janosch, 2014. "Are we there yet? Improving solar PV economics and power planning in developing countries: The case of Kenya," Renewable and Sustainable Energy Reviews, Elsevier, vol. 30(C), pages 604-615.
    17. Sanzana Tabassum & Tanvin Rahman & Ashraf Ul Islam & Sumayya Rahman & Debopriya Roy Dipta & Shidhartho Roy & Naeem Mohammad & Nafiu Nawar & Eklas Hossain, 2021. "Solar Energy in the United States: Development, Challenges and Future Prospects," Energies, MDPI, vol. 14(23), pages 1-65, December.
    18. Baurzhan, Saule & Jenkins, Glenn P., 2016. "Off-grid solar PV: Is it an affordable or appropriate solution for rural electrification in Sub-Saharan African countries?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 60(C), pages 1405-1418.
    19. Xinhui Lu & Kaile Zhou & Felix T. S. Chan & Shanlin Yang, 2017. "Optimal scheduling of household appliances for smart home energy management considering demand response," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 88(3), pages 1639-1653, September.
    20. Xin-Rui Liu & Si-Luo Sun & Qiu-Ye Sun & Wei-Yang Zhong, 2020. "Time-Scale Economic Dispatch of Electricity-Heat Integrated System Based on Users’ Thermal Comfort," Energies, MDPI, vol. 13(20), pages 1-27, October.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ejores:v:246:y:2015:i:2:p:641-650. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eor .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.