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A Nash Equilibrium Approach to the Brazilian Seasonalization of Energy Certificates

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  • Fellipe Fernandes Goulart dos Santos

    (Graduate Program in Electrical Engineering, Federal University of Minas Gerais, Belo Horizonte 31270-901, Brazil
    Companhia Energética de Minas Gerais S.A., Belo Horizonte 30190-131, Brazil)

  • Marcus Vinícius de Castro Lobato

    (Companhia Energética de Minas Gerais S.A., Belo Horizonte 30190-131, Brazil)

  • Douglas Alexandre Gomes Vieira

    (Enacom, Handcrafted Technologies, Belo Horizonte 31275-100, Brazil)

  • Adriano Chaves Lisboa

    (Gaia, Solutions on Demand, Belo Horizonte 31310-260, Brazil)

  • Rodney Rezende Saldanha

    (Department of Electrical Engineering, Federal University of Minas Gerais, Belo Horizonte 31270-901, Brazil)

Abstract

This paper presents a Nash equilibrium approach to model a non-cooperative game that takes place among Brazilian hydro-generating companies in the annual process called “seasonalization”. We have “remade” the seasonalizations that occurred in the period of 2013–2020 by using our model and comparing the financial outcomes with the current ones that resulted from the seasonalizations the generators made each year, with financial improvements in almost every year. By using the Nash equilibrium approach, it is possible to achieve optimal decisions concerning the seasonalization process that were not evident by using traditional methods. This approach is useful for companies willing to enhance their income and to improve their risk management by making better choices in seasonalization.

Suggested Citation

  • Fellipe Fernandes Goulart dos Santos & Marcus Vinícius de Castro Lobato & Douglas Alexandre Gomes Vieira & Adriano Chaves Lisboa & Rodney Rezende Saldanha, 2022. "A Nash Equilibrium Approach to the Brazilian Seasonalization of Energy Certificates," Energies, MDPI, vol. 15(6), pages 1-13, March.
    • Handle: RePEc:gam:jeners:v:15:y:2022:i:6:p:2156-:d:771994
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    References listed on IDEAS

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    1. E. J. Anderson & H. Xu, 2004. "Nash equilibria in electricity markets with discrete prices," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 60(2), pages 215-238, October.
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