Optimal selling price and energy procurement strategies for a retailer in an electricity market

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

doi:10.1016/j.epsr.2008.06.003

Cited by 128 publications

(87 citation statements)

References 33 publications

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“…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%

“…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%

“…Electricity price and clients' consumption are the key uncertain variables in the retail problem [17,23,[28][29][30][31][32][33][34]. Volatile electricity price in the electricity market, e.g.…”

Section: Uncertaintiesmentioning

confidence: 99%

“…It is evident that if a retailer cannot propose a competitive price to the clients, it may lose some big customers. Paper [30] uses Market Share Function (MSF) to model pricing strategies of competing retailers. In this structure, each retailer generates a price distribution, i.e.…”

Section: Monopolistic and Pure Competition In Retail Marketmentioning

confidence: 99%

“…equilibrium prices are defined by a probability density function, indicating the range of prices that the retailer may charge. The probability density function according to which the retailer sets its equilibrium prices is defined as the market share function [30].…”

Section: Monopolistic and Pure Competition In Retail Marketmentioning

confidence: 99%

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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: Uncertaintiesmentioning

confidence: 99%

Section: Monopolistic and Pure Competition In Retail Marketmentioning

confidence: 99%

Section: Monopolistic and Pure Competition In Retail Marketmentioning

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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Modeling of retailer's behavior for participation in the capacity market

Jalili

Eslami

Moghaddam

et al. 2019

Int Trans Electr Energ Syst

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Summary Due to economic reasons, only way for demand side management resources participation in capacity market is their participation by load serving entities, energy service companies, or retailers. To achieve the optimal participation of retailers in the capacity market, it is crucial to model the effective parameters in retailers’ behavior model and how they trade with the independent system operator and the consumers. So a novel method is proposed in this paper for modeling retailers’ behavior, considering demand side management resources availability for their participation in long term commitments. The capacity product of the retailer and its behavior are comprehensively modeled to trade in the capacity market. The competition of retailers is also considered and its effects on the profit of the retailer and consumers are analyzed. A genetic algorithm has been used to solve this problem due to its ability for solving large‐scale real nonlinear Non‐deterministic Polynomial‐time hard (NP‐hard) optimization problems.

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Optimal selling price and energy procurement strategies for a retailer in an electricity market

Cited by 128 publications

References 33 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

Modeling of retailer's behavior for participation in the capacity market

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