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SPEPS Preprint

Author(s): Stein-Erik Fleten, University of Science and Technology, Trondheim
Erling Pettersen, University of Science and Technology, Trondheim
Title: Optimization of physical purchasing for a price-taking retailer in the Norwegian electricity market
Date of Acceptance: 11.03.2005
Submission Date: 17.09.2004
Series Title: Stochastic Programming E-Print Series
(SPEPS)
Editors: Julie L. Higle; Werner Römisch; Surrajeet Sen
Keywords (eng): Electricity markets, demand-side bidding, stochastic optimization
Appeared in: IEEE transactions on power systems : a publication of the Power Engineering Society 2 (Vol. 20, 2005)
IEEE - Institute of Electrical and Electronics Engineers (New York, NY)
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Abstract (eng):
We propose a stochastic linear programming model for constructing piecewise linear bidding curves to be submitted to Nord Pool, the Nordic power exchange. We consider the case of a price-taking power marketer who supplies electricity to pricesensitive end users. The objective is to minimize the expected cost of purchasing power from the day-ahead energy market and the short term balancing market. The model is illustrated using a case study with data from Norway.
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