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|Other Titles:||A multi-round negotiation model for bilateral contracting considering spot price risks in electricity market environment|
Spot price risk
Contract price negotiation
|Source:||电力系统自动化 (Automation of electric power systems), 25 Nov. 2010, v. 34, no. 22, p. 29-35 How to cite?|
|Journal:||电力系统自动化 (Automation of electric power systems)|
Bilateral contracting represents an efficient approach for hedging the price risks in electricity spot markets. The existing research work on bilateral contracts has been concentrated on the effects of bilateral contracts on mitigating the electricity price risks and market power abuse, and less attention has been given to the forming mechanism of bilateral contracts. Given this background, a systematic multi-round bilateral negotiation framework, through which a generation company and a distribution one can reach a mutually beneficial and risk tolerable forward bilateral contract is developed. Under the framework, the generation and distribution companies respond rationally to a stream of bilateral offers counter-offers considering their respective benefits while accounting for the risks incurred by the price uncertainty in the spot electricity market. Each negotiation party can choose its own definition of the benefit and risk, and the expected utility is employed to describe the risk in this work. The concession factor is utilized to illustrate the negotiation strategy of the participants. The reservation expected utility and reservation expected profit are included in this framework so as to model the tolerable limits of the risk and the benefit. Finally, a numerical example is served for demonstrating the essential feature of the developed multi-round bilateral negotiating framework.
This work is jointly supported by the Doctoral Fund of Ministry Education of China (No. 200805610020) and National Key Technology R&D Program (No. 2008BA A 13B10).
|Rights:||© 2010 中国学术期刊电子杂志出版社。本内容的使用仅限于教育、科研之目的。|
© 2010 China Academic Journal Electronic Publishing House. It is to be used strictly for educational and research use.
|Appears in Collections:||Journal/Magazine Article|
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Citations as of Sep 18, 2017
Checked on Sep 25, 2017
Checked on Sep 25, 2017
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