A Stochastic-Based Decision-Making Framework for an Electricity Retailer: Time-of-Use Pricing and Electricity Portfolio Optimization

Hatami, Alireza; Seifi, Hossein; Sheikh‐El‐Eslami, Mohammad Kazem

doi:10.1109/tpwrs.2010.2095431

Cited by 177 publications

(105 citation statements)

References 31 publications

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“…Considering the wholesale market, Day-ahead Market (DAM) [14][15][16][17][18][19][20][21][22][23][24][25][26][27][28], Real Time Market (RTM) [17][18][19][20][21][22][23][24][25][26][27][28][29], Reserve Market (RM) [15,21,22] and Intraday Market (IDM) [20] are the most common markets used by retailers to purchase their obligated energy. Moreover, regarding the wholesale contracts, future contracts [17,26,29], forward contracts [16,18,23,30], call option [23,30] and swing contracts [25,28] are typically used in different studies of retail market. In addition to the large-scale power production facilities which participate in the wholesale market, some retailers prefer to procure some parts of their electrical energy through bilateral contracts signed with small-scale power generators.…”

Section: Energy Management In Retail Electricity Marketmentioning

confidence: 99%

“…On the other hand, some retailers prefer to procure their obligated energy from deterministic power production units, e.g. gas fired/diesel engines, to hedge against the uncertainties associated with electricity price and clients' consumption [16,23,30,31].…”

Section: Energy Management In Retail Electricity Marketmentioning

confidence: 99%

“…These programs are typically used to determine the consumption tariff for end-use consumers [17,19,23,31]. Time of Use (TOU) [41], Critical Peak Pricing (CPP) [42], Extreme Day Pricing (EDP) and Real Time Pricing (RTP) [43] are the most common DR programs which are used as retail pricing schemes.…”

Section: Energy Management In Retail Electricity Marketmentioning

confidence: 99%

“…These programs are mainly used by DR providers to increase the efficiency of power system in term of cost and reliability. In addition to DR programs, voluntary and mandatory load curtailment programs are proposed in some studies to increase the efficiency of retail market [14,23]. Demand response providers can aggregate different DR programs to reduce the demand level of retailers when the wholesale electricity price is high.…”

Section: Energy Management In Retail Electricity Marketmentioning

confidence: 99%

“…In the literature about the energy management in retail electricity markets, there are many different research studies which consider the retailers as a price-taker agent [21][22][23][24][25][26][27][28][29]. Price-taker retailers (PTR) and price-maker retailers (PMR) are exposed to different sources of uncertainty.…”

Section: Price-maker and Price-taker Retailersmentioning

confidence: 99%

See 4 more Smart Citations

Retail Energy Management in Electricity Markets: Structure, Challenges and Economic Aspects- a Review

Golmohamadi

Keypour

2017

Technol Econ Smart Grids Sustain Energy

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In the rapidly growing global energy consumption, electrical energy plays the important role. Environmental concerns about air pollution, fossil fuels depletion and energy crisis have led policy makers of energy systems to increase the portion of electricity in the energy portfolio. On the other hand, economic crises, especially in recent years, have increased the electricity price. With decreased purchasing power, end-use consumers are encouraged to participate in Demand Side Management (DSM) programs, e.g. Demand Response Programs (DRPs), to decrease their electricity bills. In such situation, retail energy management attracts attention in both development and improvement. This paper reviews the concept of retail energy management in modern structure of electricity markets. The objectives of this study are: a) review techno-economic studies in the literature to identify the main structure of retail energy management; b) review the different retail market studies for assessing economic performance; c) present a comprehensive evaluation about the role of DRPs in retail energy management; d) carry out an extensive survey of optimization approaches, mathematical modeling and optimization software about the retail energy management. This paper provides a template for market participants to optimize energy management in the retail side of electricity markets. The proposed structure encourages the efficient development of retail electricity market while eliminating

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Section: Energy Management In Retail Electricity Marketmentioning

confidence: 99%

Section: Energy Management In Retail Electricity Marketmentioning

confidence: 99%

Section: Energy Management In Retail Electricity Marketmentioning

confidence: 99%

Section: Energy Management In Retail Electricity Marketmentioning

confidence: 99%

Section: Price-maker and Price-taker Retailersmentioning

confidence: 99%

See 3 more Smart Citations

Retail Energy Management in Electricity Markets: Structure, Challenges and Economic Aspects- a Review

Golmohamadi

Keypour

2017

Technol Econ Smart Grids Sustain Energy

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Risk‐based retailer profit maximization: Time of Use price setting for elastic demand

Chawda

Mathuria

Bhakar

2019

Int Trans Electr Energ Syst

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Summary Retailers in electricity markets face challenges of hourly varying energy prices and consumers' elastic demand. Besides these challenges, utilization of high renewable energy (RE) self‐generation such as solar energy could significantly affect energy procurement and sale prices decisions of a retailer. A retailer with RE self‐generation makes decisions targeting best utilization of RE availability, to maximize its profit. However, a retailer without RE makes decisions considering energy prices and elastic demand. In this perspective, this paper determines optimal Time of Use (ToU) sale prices to be offered and optimal energy procurement portfolio, for a retailer with and without RE, considering elastic demand and wholesale market price uncertainty, aiming to maximize retailer's profit. Case study considers three consumer classes to examine risk neutral and risk averse behavior of a retailer. Results illustrate impact of multiple consumer class behavior on ToU price, procurement strategy, and risk preferences of a retailer.

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A stochastic bi‐level decision‐making framework for a load‐serving entity in day‐ahead and balancing markets

Rashidizadeh‐Kermani

Vahedipour‐Dahraie

Anvari‐Moghaddam

2019

Int Trans Electr Energ Syst

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Summary This paper investigates a stochastic bi‐level scheduling model for decision‐making of a load‐serving entity (LSE) in competitive day‐ahead (DA) and regulating markets with uncertainties. In this model, LSE as the main interacting player of the market sells electricity to end‐use customers and plug‐in electric vehicles (PEVs) to maximize its expected profit. Therefore, a two‐level decision‐making process with different objectives is considered to solve the problem. In one level, the objective is to maximize the LSE's profit by optimally scheduling of responsive loads and PEVs charging/discharging process, while in the other level, the payments of the customers and PEV owners should be minimized in a competitive market. In the proposed decision‐making process, to model the uncertainties, market prices, required energy of customers and PEVs, and the rival LSEs' prices are considered as random variables. The bi‐level stochastic problem is then converted into a linear single‐level stochastic model with equilibrium constraints by using Karush‐Kuhn‐Tucker (KKT) optimality conditions as well as duality theory. A case study is implemented to indicate the applicability of the intended model. The applicability of the proposed model is tested on Nordic market and the results show that in a competitive market, the LSE can increase its revenue and attract more demand loads and PEV owners by offering more moderate prices.

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A Stochastic-Based Decision-Making Framework for an Electricity Retailer: Time-of-Use Pricing and Electricity Portfolio Optimization

Cited by 177 publications

References 31 publications

Retail Energy Management in Electricity Markets: Structure, Challenges and Economic Aspects- a Review

Retail Energy Management in Electricity Markets: Structure, Challenges and Economic Aspects- a Review

Risk‐based retailer profit maximization: Time of Use price setting for elastic demand

A stochastic bi‐level decision‐making framework for a load‐serving entity in day‐ahead and balancing markets

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