Optimal energy purchases in deregulated California energy markets
Refereed conference paper presented and published in conference proceedings

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AbstractIn this paper, the problem of optimal energy purchases in a deregulated California energy market is studied. This commodity has been deregulated into three time sequential markets, known as the PX day-ahead, and hour-ahead (day of), and the ISO real-time energy markets. After deregulation, energy purchasers have to purchase energy on an hourly basis. The uncertain demands, the demand and supply bidding processes further complicate the decision process. It is challenging to explore an effective energy purchase strategy in the above energy markets with such a complex structure. By using a stochastic dynamic programming technique in this study, the problem is analytically resolved and an optimal solution is obtained with the forecasting supply curves. The cost functions of both the day-ahead and hour-ahead markets are proven to be convex with respect to the energy purchases in these two markets. With the optimal solution, we are able to demonstrate some interesting managerial implications which are not easy to obtain otherwise. A numerical example is also included to demonstrate the solution approach.
All Author(s) ListYan H., Yan H.
Name of ConferenceIEEE Power Engineering Society Winter Meeting, 2000
Start Date of Conference23/01/2000
End Date of Conference27/01/2000
Place of ConferenceSingapore
Country/Region of ConferenceSingapore
Detailed descriptionPaper presented in the IEEE Power Engineering Society 2000 Winter Meeting.
Year2000
Month1
Day1
Volume Number2
Pages1249 - 1254
ISBN0780359356
LanguagesEnglish-United Kingdom
KeywordsDynamic programming, Energy market, Optimization, Stochastic Models

Last updated on 2020-27-11 at 00:26