Decision Making Under Uncertainty in Electricity Markets [Hardcover]

Decision Making Under Uncertainty in Electricity Markets provides models and procedures to be used by electricity market agents to make informed decisions under uncertainty. These procedures rely on well established stochastic programming models, which make them efficient and robust. Particularly, these techniques allow electricity producers to derive offering strategies for the pool and contracting decisions in the futures market. Retailers use these techniques to derive selling prices to clients and energy procurement strategies through the pool, the futures market and bilateral contracting. Using the proposed models, consumers can derive the best energy procurement strategies using the available trading floors. The market operator can use the techniques proposed in this book to clear simultaneously energy and reserve markets promoting efficiency and equity. The techniques described in this book are of interest for professionals working on energy markets, and for graduate students in power engineering, applied mathematics, applied economics, and operations research.

This book provides models and procedures to be used by electricity market agents to make informed decisions under uncertainty. These procedures rely on well established stochastic programming models, which make them efficient and robust.

This addition to the ISOR series is a readable yet rigorous advanced text/reference on models and decision-making under uncertainty in the growing area of electricity markets. It is the first book to show how to use stochastic programming procedures to carry out in-depth analysis of decision-making models under uncertainty in these markets, including formulation issues and solution techniques. Due to the recent creation of futures markets for electricity in the past decade, much of the book is groundbreaking and reflects the most recent advances in operations research and its application in energy markets in general.