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Diversification of fuel costs accounting for load variation

Author

Listed:
  • Ruangpattana, Suriya
  • Preckel, Paul V.
  • Gotham, Douglas J.
  • Muthuraman, Kumar
  • Velástegui, Marco
  • Morin, Thomas L.
  • Uhan, Nelson A.

Abstract

A practical mathematical programming model for the strategic fuel diversification problem is presented. The model is designed to consider the tradeoffs between the expected costs of investments in capacity, operating and maintenance costs, average fuel costs, and the variability of fuel costs. In addition, the model is designed to take the load curve into account at a high degree of resolution, while keeping the computational burden at a practical level.

Suggested Citation

  • Ruangpattana, Suriya & Preckel, Paul V. & Gotham, Douglas J. & Muthuraman, Kumar & Velástegui, Marco & Morin, Thomas L. & Uhan, Nelson A., 2012. "Diversification of fuel costs accounting for load variation," Energy Policy, Elsevier, vol. 42(C), pages 400-408.
    • Handle: RePEc:eee:enepol:v:42:y:2012:i:c:p:400-408
    DOI: 10.1016/j.enpol.2011.12.004
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    References listed on IDEAS

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    1. Bar-Lev, Dan & Katz, Steven, 1976. "A Portfolio Approach to Fossil Fuel Procurement in the Electric Utility Industry," Journal of Finance, American Finance Association, vol. 31(3), pages 933-947, June.
    2. Harry Markowitz, 1952. "Portfolio Selection," Journal of Finance, American Finance Association, vol. 7(1), pages 77-91, March.
    3. repec:aen:journl:1998v19-03-a06 is not listed on IDEAS
    4. Boris Krey & Peter Zweifel, 2006. "Efficient Electricity Portfolios for Switzerland and the United States," SOI - Working Papers 0602, Socioeconomic Institute - University of Zurich.
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    1. Min, Daiki & Chung, Jaewoo, 2013. "Evaluation of the long-term power generation mix: The case study of South Korea's energy policy," Energy Policy, Elsevier, vol. 62(C), pages 1544-1552.

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