Dynamic Pricing for Demand Response Considering Market Price Uncertainty

Detalhes bibliográficos
Autor(a) principal: Fotouhi Ghazvini, Mohammad
Data de Publicação: 2017
Outros Autores: Soares, João, Morais, Hugo, Castro, Rui, Vale, Zita
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
Texto Completo: http://hdl.handle.net/10400.22/10250
Resumo: 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.
id RCAP_b4481c4c7b4de1309681ba05c91cf79c
oai_identifier_str oai:recipp.ipp.pt:10400.22/10250
network_acronym_str RCAP
network_name_str Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
repository_id_str 7160
spelling Dynamic Pricing for Demand Response Considering Market Price UncertaintyCall optionDemand responseForward contractRetail electricity providerRobust optimizaitonRetail 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.MDPIRepositório Científico do Instituto Politécnico do PortoFotouhi Ghazvini, MohammadSoares, JoãoMorais, HugoCastro, RuiVale, Zita2017-09-05T14:50:57Z2017-082017-08-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10400.22/10250eng10.3390/en10091245info:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-03-13T12:51:47Zoai:recipp.ipp.pt:10400.22/10250Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T17:30:42.631621Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse
dc.title.none.fl_str_mv Dynamic Pricing for Demand Response Considering Market Price Uncertainty
title Dynamic Pricing for Demand Response Considering Market Price Uncertainty
spellingShingle Dynamic Pricing for Demand Response Considering Market Price Uncertainty
Fotouhi Ghazvini, Mohammad
Call option
Demand response
Forward contract
Retail electricity provider
Robust optimizaiton
title_short Dynamic Pricing for Demand Response Considering Market Price Uncertainty
title_full Dynamic Pricing for Demand Response Considering Market Price Uncertainty
title_fullStr Dynamic Pricing for Demand Response Considering Market Price Uncertainty
title_full_unstemmed Dynamic Pricing for Demand Response Considering Market Price Uncertainty
title_sort Dynamic Pricing for Demand Response Considering Market Price Uncertainty
author Fotouhi Ghazvini, Mohammad
author_facet Fotouhi Ghazvini, Mohammad
Soares, João
Morais, Hugo
Castro, Rui
Vale, Zita
author_role author
author2 Soares, João
Morais, Hugo
Castro, Rui
Vale, Zita
author2_role author
author
author
author
dc.contributor.none.fl_str_mv Repositório Científico do Instituto Politécnico do Porto
dc.contributor.author.fl_str_mv Fotouhi Ghazvini, Mohammad
Soares, João
Morais, Hugo
Castro, Rui
Vale, Zita
dc.subject.por.fl_str_mv Call option
Demand response
Forward contract
Retail electricity provider
Robust optimizaiton
topic Call option
Demand response
Forward contract
Retail electricity provider
Robust optimizaiton
description 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.
publishDate 2017
dc.date.none.fl_str_mv 2017-09-05T14:50:57Z
2017-08
2017-08-01T00:00:00Z
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv http://hdl.handle.net/10400.22/10250
url http://hdl.handle.net/10400.22/10250
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv 10.3390/en10091245
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv MDPI
publisher.none.fl_str_mv MDPI
dc.source.none.fl_str_mv reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
instacron:RCAAP
instname_str Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
instacron_str RCAAP
institution RCAAP
reponame_str Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
collection Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
repository.name.fl_str_mv Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
repository.mail.fl_str_mv
_version_ 1799131402600448000