IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v11y2018i6p1389-d149663.html
   My bibliography  Save this article

Impact of Risk Aversion on the Operation of Hydroelectric Reservoirs in the Presence of Renewable Energy Sources

Author

Listed:
  • Nenad Jovanović

    (Instituto de Investigación Tecnológica (IIT), Escuela Técnica Superior de Ingeniería (ICAI), Universidad Pontificia Comillas, c/Alberto Aguilera 23, 28015 Madrid, Spain)

  • Javier García-González

    (Instituto de Investigación Tecnológica (IIT), Escuela Técnica Superior de Ingeniería (ICAI), Universidad Pontificia Comillas, c/Alberto Aguilera 23, 28015 Madrid, Spain)

  • Santiago Cerisola

    (Instituto de Investigación Tecnológica (IIT), Escuela Técnica Superior de Ingeniería (ICAI), Universidad Pontificia Comillas, c/Alberto Aguilera 23, 28015 Madrid, Spain)

  • Julián Barquín

    (Endesa (ENEL Group), 60 Rivera del Loira, 28042 Madrid, Spain)

Abstract

The increasing share of renewable energy sources, such as wind and solar generation, has a direct impact on the planning and operation of power systems. In addition, the consideration of risk criteria within the decision support tools used by market participants (generation companies, energy services companies, and arbitrageurs) is becoming a common activity given the increasing level of uncertainties faced by them. As a consequence, the behavior of market participants is affected by their level of risk aversion, and the application of equilibrium-based models is a common technique used in order to simulate their behavior. This paper presents a multi-stage market equilibrium model of risk-averse agents in order to analyze up to what extent the operation of hydro reservoirs can be affected by the risk-averse profile of market participants in a context of renewable energy source penetration and fuel price volatility.

Suggested Citation

  • Nenad Jovanović & Javier García-González & Santiago Cerisola & Julián Barquín, 2018. "Impact of Risk Aversion on the Operation of Hydroelectric Reservoirs in the Presence of Renewable Energy Sources," Energies, MDPI, vol. 11(6), pages 1-20, May.
    • Handle: RePEc:gam:jeners:v:11:y:2018:i:6:p:1389-:d:149663
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/11/6/1389/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/11/6/1389/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Rodilla, Pablo & García-González, Javier & Baíllo, Álvaro & Cerisola, Santiago & Batlle, Carlos, 2015. "Hydro resource management, risk aversion and equilibrium in an incomplete electricity market setting," Energy Economics, Elsevier, vol. 51(C), pages 365-382.
    2. Rubin, Ofir D. & Babcock, Bruce A., 2013. "The impact of expansion of wind power capacity and pricing methods on the efficiency of deregulated electricity markets," Energy, Elsevier, vol. 59(C), pages 676-688.
    3. Ventosa, Mariano & Baillo, Alvaro & Ramos, Andres & Rivier, Michel, 2005. "Electricity market modeling trends," Energy Policy, Elsevier, vol. 33(7), pages 897-913, May.
    4. de Queiroz, Anderson Rodrigo, 2016. "Stochastic hydro-thermal scheduling optimization: An overview," Renewable and Sustainable Energy Reviews, Elsevier, vol. 62(C), pages 382-395.
    5. Pouria Sheikhahmadi & Ramyar Mafakheri & Salah Bahramara & Maziar Yazdani Damavandi & João P. S. Catalão, 2018. "Risk-Based Two-Stage Stochastic Optimization Problem of Micro-Grid Operation with Renewables and Incentive-Based Demand Response Programs," Energies, MDPI, vol. 11(3), pages 1-17, March.
    6. Christos-Spyridon Karavas & Konstantinos Arvanitis & George Papadakis, 2017. "A Game Theory Approach to Multi-Agent Decentralized Energy Management of Autonomous Polygeneration Microgrids," Energies, MDPI, vol. 10(11), pages 1-22, November.
    7. Ibrahim Abada & Gauthier de Maere d'Aertrycke & Yves Smeers, 2017. "On the multiplicity of solutions in generation capacity investment models with incomplete markets: a ris-averse stochastic equilibrium approach," LIDAM Reprints CORE 2909, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    8. Garcia-Gonzalez, Javier & Parrilla, Ernesto & Mateo, Alicia, 2007. "Risk-averse profit-based optimal scheduling of a hydro-chain in the day-ahead electricity market," European Journal of Operational Research, Elsevier, vol. 181(3), pages 1354-1369, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wei Wang & Yang Sun & Sitong Jing & Wenguang Zhang & Can Cui, 2018. "Improved Boiler-Turbine Coordinated Control of CHP Units with Heat Accumulators by Introducing Heat Source Regulation," Energies, MDPI, vol. 11(10), pages 1-15, October.
    2. Heesun Jang, 2020. "Market Impacts of a Transmission Investment: Evidence from the ERCOT Competitive Renewable Energy Zones Project," Energies, MDPI, vol. 13(12), pages 1-16, June.
    3. Fan, Zhi-Ping & Cai, Siqin & Guo, Dongliang & Xu, Bo, 2022. "Facing the uncertainty of renewable energy production: Production decisions of a power plant with different risk attitudes," Renewable Energy, Elsevier, vol. 199(C), pages 1237-1247.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lebeau, Alexis & Petitet, Marie & Quemin, Simon & Saguan, Marcelo, 2024. "Long-term issues with the Energy-Only Market design in the context of deep decarbonization," Energy Economics, Elsevier, vol. 132(C).
    2. Esmaeili Aliabadi, Danial & Kaya, Murat & Sahin, Guvenc, 2017. "Competition, risk and learning in electricity markets: An agent-based simulation study," Applied Energy, Elsevier, vol. 195(C), pages 1000-1011.
    3. Weron, Rafał, 2014. "Electricity price forecasting: A review of the state-of-the-art with a look into the future," International Journal of Forecasting, Elsevier, vol. 30(4), pages 1030-1081.
    4. Pérez-Díaz, Juan I. & Chazarra, M. & García-González, J. & Cavazzini, G. & Stoppato, A., 2015. "Trends and challenges in the operation of pumped-storage hydropower plants," Renewable and Sustainable Energy Reviews, Elsevier, vol. 44(C), pages 767-784.
    5. Lagarto, João & Sousa, Jorge A.M. & Martins, Álvaro & Ferrão, Paulo, 2014. "Market power analysis in the Iberian electricity market using a conjectural variations model," Energy, Elsevier, vol. 76(C), pages 292-305.
    6. Balint, T. & Lamperti, F. & Mandel, A. & Napoletano, M. & Roventini, A. & Sapio, A., 2017. "Complexity and the Economics of Climate Change: A Survey and a Look Forward," Ecological Economics, Elsevier, vol. 138(C), pages 252-265.
    7. Fernández-Blanco, R. & Kavvadias, K. & Hidalgo González, I., 2017. "Quantifying the water-power linkage on hydrothermal power systems: A Greek case study," Applied Energy, Elsevier, vol. 203(C), pages 240-253.
    8. Keppler, Jan Horst & Quemin, Simon & Saguan, Marcelo, 2022. "Why the sustainable provision of low-carbon electricity needs hybrid markets," Energy Policy, Elsevier, vol. 171(C).
    9. Neuhoff, Karsten & Barquin, Julian & Boots, Maroeska G. & Ehrenmann, Andreas & Hobbs, Benjamin F. & Rijkers, Fieke A.M. & Vazquez, Miguel, 2005. "Network-constrained Cournot models of liberalized electricity markets: the devil is in the details," Energy Economics, Elsevier, vol. 27(3), pages 495-525, May.
    10. Yin, Linfei & Zhang, Bin, 2021. "Time series generative adversarial network controller for long-term smart generation control of microgrids," Applied Energy, Elsevier, vol. 281(C).
    11. Bin Luo & Shumin Miao & Chuntian Cheng & Yi Lei & Gang Chen & Lang Gao, 2019. "Long-Term Generation Scheduling for Cascade Hydropower Plants Considering Price Correlation between Multiple Markets," Energies, MDPI, vol. 12(12), pages 1-17, June.
    12. Rafal Weron & Adam Misiorek, 2006. "Short-term electricity price forecasting with time series models: A review and evaluation," HSC Research Reports HSC/06/01, Hugo Steinhaus Center, Wroclaw University of Science and Technology.
    13. Simon Pezzutto & Gianluca Grilli & Stefano Zambotti & Stefan Dunjic, 2018. "Forecasting Electricity Market Price for End Users in EU28 until 2020—Main Factors of Influence," Energies, MDPI, vol. 11(6), pages 1-18, June.
    14. Egging, Ruud & Pichler, Alois & Kalvø, Øyvind Iversen & Walle–Hansen, Thomas Meyer, 2017. "Risk aversion in imperfect natural gas markets," European Journal of Operational Research, Elsevier, vol. 259(1), pages 367-383.
    15. Abbaspour, M. & Satkin, M. & Mohammadi-Ivatloo, B. & Hoseinzadeh Lotfi, F. & Noorollahi, Y., 2013. "Optimal operation scheduling of wind power integrated with compressed air energy storage (CAES)," Renewable Energy, Elsevier, vol. 51(C), pages 53-59.
    16. Elberg, Christina & Hagspiel, Simeon, 2015. "Spatial dependencies of wind power and interrelations with spot price dynamics," European Journal of Operational Research, Elsevier, vol. 241(1), pages 260-272.
    17. Takashima, Ryuta & Goto, Makoto & Kimura, Hiroshi & Madarame, Haruki, 2008. "Entry into the electricity market: Uncertainty, competition, and mothballing options," Energy Economics, Elsevier, vol. 30(4), pages 1809-1830, July.
    18. Song, Yang & Zhang, Zhiyuan & Sahut, Jean-Michel & Rubin, Ofir, 2023. "Incentivizing green technology innovation to confront sustainable development," Technovation, Elsevier, vol. 126(C).
    19. Misiorek Adam & Trueck Stefan & Weron Rafal, 2006. "Point and Interval Forecasting of Spot Electricity Prices: Linear vs. Non-Linear Time Series Models," Studies in Nonlinear Dynamics & Econometrics, De Gruyter, vol. 10(3), pages 1-36, September.
    20. Bonenti, Francesca & Oggioni, Giorgia & Allevi, Elisabetta & Marangoni, Giacomo, 2013. "Evaluating the EU ETS impacts on profits, investments and prices of the Italian electricity market," Energy Policy, Elsevier, vol. 59(C), pages 242-256.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jeners:v:11:y:2018:i:6:p:1389-:d:149663. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.