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Medium-term power planning in electricity markets with pool and bilateral contracts

Author

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  • Marí, L.
  • Nabona, N.
  • Pagès-Bernaus, A.

Abstract

Many of the existing electricity markets are of the mixed type, which has pool auction and bilateral contracts between producers and distributors. In this case, the problem faced by a Generation Company (GenCo) is that of maximizing the revenues from participating in the market through the pool auction while honoring the bilateral contracts agreed, for which the revenue is fixed.

Suggested Citation

  • Marí, L. & Nabona, N. & Pagès-Bernaus, A., 2017. "Medium-term power planning in electricity markets with pool and bilateral contracts," European Journal of Operational Research, Elsevier, vol. 260(2), pages 432-443.
    • Handle: RePEc:eee:ejores:v:260:y:2017:i:2:p:432-443
    DOI: 10.1016/j.ejor.2017.02.003
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    References listed on IDEAS

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    1. Yu, Nanpeng & Tesfatsion, Leigh & Liu, Chen-Ching, 2012. "Financial Bilateral Contract Negotiation in Wholesale Electricity Markets Using Nash Bargaining Theory," ISU General Staff Papers 201201010800001470, Iowa State University, Department of Economics.
    2. Morales, Juan M. & Zugno, Marco & Pineda, Salvador & Pinson, Pierre, 2014. "Electricity market clearing with improved scheduling of stochastic production," European Journal of Operational Research, Elsevier, vol. 235(3), pages 765-774.
    3. Paraschiv, Florentina & Fleten, Stein-Erik & Schürle, Michael, 2015. "A spot-forward model for electricity prices with regime shifts," Energy Economics, Elsevier, vol. 47(C), pages 142-153.
    4. Pages, Adela & Nabona, Narcis, 2007. "A heuristic for the long-term electricity generation planning problem using the Bloom and Gallant formulation," European Journal of Operational Research, Elsevier, vol. 181(3), pages 1245-1264, September.
    5. Holger Heitsch & Werner Römisch, 2009. "Scenario tree reduction for multistage stochastic programs," Computational Management Science, Springer, vol. 6(2), pages 117-133, May.
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    Cited by:

    1. Paolo Falbo & Carlos Ruiz, 2021. "Joint optimization of sales-mix and generation plan for a large electricity producer," Papers 2110.02016, arXiv.org.
    2. Falbo, Paolo & Ruiz, Carlos, 2023. "Joint optimization of sales-mix and generation plan for a large electricity producer," Energy Economics, Elsevier, vol. 120(C).
    3. Falbo, Paolo & Ruiz, Carlos, 2019. "Optimal sales-mix and generation plan in a two-stage electricity market," Energy Economics, Elsevier, vol. 78(C), pages 598-614.
    4. Tian, Xiaoge & Chen, Weiming & Hu, Jinglu, 2023. "Game-theoretic modeling of power supply chain coordination under demand variation in China: A case study of Guangdong Province," Energy, Elsevier, vol. 262(PA).
    5. Zhao, Wenhui & Zhang, Jiuyang & Li, Ruan & Zha, Ruiming, 2021. "A transaction case analysis of the development of generation rights trading and existing shortages in China," Energy Policy, Elsevier, vol. 149(C).

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