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Optimum production plans for thermal power plants in the deregulated electricity market

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  • Lazzaretto, Andrea
  • Carraretto, Cristian

Abstract

The introduction of deregulated markets requires correct operation strategies for the competitiveness of electricity utilities. Optimum strategies are determined in this paper for different groups of thermal power plants using a dynamic programming technique suggested by the authors in a previous paper. Attention focuses here on the ‘Day-Ahead market’ session, considering the viewpoint of a company which manages a power plant or a group of power plants trying to maximize profit over the whole session. To cover different situations that could be met in the market, examples are presented both in case of limits imposed on the total production and when all energies produced are supposed to be accepted by the market.

Suggested Citation

  • Lazzaretto, Andrea & Carraretto, Cristian, 2006. "Optimum production plans for thermal power plants in the deregulated electricity market," Energy, Elsevier, vol. 31(10), pages 1567-1585.
    • Handle: RePEc:eee:energy:v:31:y:2006:i:10:p:1567-1585
    DOI: 10.1016/j.energy.2005.05.007
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    References listed on IDEAS

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    1. Severin Borenstein & James Bushnell & Christopher R. Knittel, 1999. "Market Power in Electricity Markets: Beyond Concentration Measures," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 65-88.
    2. William W. Hogan, 1997. "A Market Power Model with Strategic Interaction in Electricity Networks," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 107-141.
    3. Aleksandr Rudkevich & Max Duckworth & Richard Rosen, 1998. "Modeling Electricity Pricing in a Deregulated Generation Industry: The Potential for Oligopoly Pricing in a Poolco," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 19-48.
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