Optimal generation portfolio management for futures and spot market

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

2 Scopus citations

Abstract

One of the most important decisions that a Genco has to make is to determine generation portfolio management of the spot and futures market. That is, how much capacity should be put into the futures market and how much should be kept to bid in the spot market. This paper focuses on the generation portfolio management between monthly futures market and daily spot market. It deals with the problems of optimal hedging position based on the current forward price and the forecasted hourly spot prices. The problem is formulated based on the model of PJM market and the double dynamic programming method developed in our previous work is applied to solve this optimal portfolio management problem with all the short term operating constraints satisfied. Numerical testing results show that this method is efficient and optimal generation portfolio is obtained based on current futures price and forecasted spot market prices.

Original languageEnglish
Title of host publication2006 IEEE Power Engineering Society General Meeting, PES
StatePublished - 2006
Event2006 IEEE Power Engineering Society General Meeting, PES - Montreal, QC, Canada
Duration: 18 Jun 200622 Jun 2006

Publication series

Name2006 IEEE Power Engineering Society General Meeting, PES

Conference

Conference2006 IEEE Power Engineering Society General Meeting, PES
Country/TerritoryCanada
CityMontreal, QC
Period18/06/0622/06/06

Keywords

  • Futures contract
  • Generation asset allocation
  • Generation portfolio management
  • Power market
  • Unit commitment

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