Interruptible Electricity Contracts from an Electricity Retailer's Point of View: Valuation and Optimal Interruption
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چکیده
منابع مشابه
Interruptible Electricity Contracts from an Electricity Retailer's Point of View: Valuation and Optimal Interruption
We consider interruptible electricity contracts issued by an electricity retailer that allow for interruptions to electric service in exchange for either an overall reduction in the price of electricity delivered or for financial compensation at the time of interruption. We provide an equilibrium model to determine electricity prices based on stochastic models of supply and demand. In the conte...
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We consider interruptible electricity contracts issued by a distributor of electricity, that allow for interruptions to electric service in exchange for either an overall reduction in the price of electricity delivered, or for financial compensation at the time of interruption. We provide an equilibrium model to determine electricity prices, based on stochastic models of supply and demand. In t...
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This paper presents the design and pricing of financial contracts for the supply and procurement of interruptible electricity service. While the contract forms and pricing methodology have broader applications, the focus of this work is on electricity market applications, which motivate the contract structures and price process assumptions. In particular, we propose a new contract form that bun...
متن کاملDefinition of a Balancing Point for Electricity Transmission Contracts
Electricity transmission contracts allocate scarce resources, allow hedging against locational price differences and provide information to guide investment. Liquidity is increased if all transmission contracts are defined relative to one balancing point, then a set of two contracts can replicate any point to point contract. We propose an algorithm and apply it to the European electricity netwo...
متن کاملRisk Analysis of Interruptible Load Contracts∗
Deregulation of electricity industries often poses enormous risk for retailers who must purchase electricity from spot markets at volatile prices and sell it to end-use consumers at stable retail rates. Absent any demand-side response, one recourse available to retailers in order to hedge against this exposure is to offer interruptible load (IL) contracts. These financial instruments enable the...
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ژورنال
عنوان ژورنال: Operations Research
سال: 2006
ISSN: 0030-364X,1526-5463
DOI: 10.1287/opre.1060.0303