| _version_ | 1866901254328811520 |
|---|---|
| author | Eva Rodriguez Lucas Brooks |
| author_facet | Eva Rodriguez Lucas Brooks |
| contents | <p>Retail energy providers (REPs) can employ different strategies such as offering demand response (DR) programs, participating in bilateral contracts, and employing self-generation distributed generation (DG) units to avoid financial losses in the volatile electricity markets. In this paper, the problem of setting dynamic retail sales price by a REP is addressed with a robust optimization technique. In the proposed model, the REP offers price-based DR programs while it faces uncertainties in the wholesale market price. The main contribution of this paper is using a robust optimization approach for setting the short-term dynamic retail rates for an asset-light REP. With this approach, the REP can decide how to participate in forward contracts and call options. They can also determine the optimal operation of the self-generation DG units. Several case studies have been carried out for a REP with 10,679 residential consumers. The deterministic approach and its robust counterpart are used to solve the problem. The results show that, with a slight decrease in the expected payoff, the REP can effectively protect itself against price variations. Offering time-variable retail rates also can increase the expected profit of the REPs</p> |
| format | Recurso digital |
| id | zenodo_https___doi_org_10_5281_zenodo_19448032 |
| institution | Zenodo |
| language | |
| publishDate | 2015 |
| publisher | Zenodo |
| record_format | zenodo |
| spellingShingle | Optimizing Smart Grids Under Uncertainty Eva Rodriguez Lucas Brooks call option demand response forward contract retail electricity provider robust optimization <p>Retail energy providers (REPs) can employ different strategies such as offering demand response (DR) programs, participating in bilateral contracts, and employing self-generation distributed generation (DG) units to avoid financial losses in the volatile electricity markets. In this paper, the problem of setting dynamic retail sales price by a REP is addressed with a robust optimization technique. In the proposed model, the REP offers price-based DR programs while it faces uncertainties in the wholesale market price. The main contribution of this paper is using a robust optimization approach for setting the short-term dynamic retail rates for an asset-light REP. With this approach, the REP can decide how to participate in forward contracts and call options. They can also determine the optimal operation of the self-generation DG units. Several case studies have been carried out for a REP with 10,679 residential consumers. The deterministic approach and its robust counterpart are used to solve the problem. The results show that, with a slight decrease in the expected payoff, the REP can effectively protect itself against price variations. Offering time-variable retail rates also can increase the expected profit of the REPs</p> |
| title | Optimizing Smart Grids Under Uncertainty |
| topic | call option demand response forward contract retail electricity provider robust optimization |
| url | https://doi.org/10.5281/zenodo.19448032 |