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

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  • 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.

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  • 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
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    References listed on IDEAS

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    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.

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