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Investing in Bridging Fuels: The Unit Commitment Problem of Public vs. Private Ventures

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  • Filippos Ioannidis
  • Kyriaki Kosmidou
  • Iordanis Kalaitzoglou
  • Kostas Andriosopoulos
  • Emilios Galariotis

Abstract

This paper presents an extensive comparison between public and private natural gas-fired units in managing the unit commitment problem in the context of the Greek electricity market. Using a unique hourly dataset from 2015–2019, our approach utilizes risk-weighted performance metrics—Cash Flows at Risk (CFaR) and Risk Weighted Return (RWR)—to analyze performance across the public and private units. Empirical findings indicate that publicly owned natural gas-fired units outperform privately owned natural gas-fired units in terms of operational efficiency, however the efficiency of privately owned natural gas-fired units is growing at a faster pace and is expected to surpass the efficiency of public units within 2 or 3 years.

Suggested Citation

  • Filippos Ioannidis & Kyriaki Kosmidou & Iordanis Kalaitzoglou & Kostas Andriosopoulos & Emilios Galariotis, 2023. "Investing in Bridging Fuels: The Unit Commitment Problem of Public vs. Private Ventures," The Energy Journal, , vol. 44(1), pages 93-118, January.
    • Handle: RePEc:sae:enejou:v:44:y:2023:i:1:p:93-118
    DOI: 10.5547/01956574.44.1.fioa
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    References listed on IDEAS

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    1. Angelopoulos, Dimitrios & Siskos, Yannis & Psarras, John, 2019. "Disaggregating time series on multiple criteria for robust forecasting: The case of long-term electricity demand in Greece," European Journal of Operational Research, Elsevier, vol. 275(1), pages 252-265.
    2. Joseph E. Duggan, Jr. and Ramteen Sioshansi, 2019. "Another Step Towards Equilibrium Offers in Unit Commitment Auctions with Nonconvex Costs: Multi-Firm Oligopolies," The Energy Journal, International Association for Energy Economics, vol. 0(Number 6).
    3. 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.
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