English

On stochastic auctions in risk-averse electricity markets with uncertain supply

Optimization and Control 2020-05-01 v3

Abstract

This paper studies risk in a stochastic auction which facilitates the integration of renewable generation in electricity markets. We model market participants who are risk averse and reflect their risk aversion through coherent risk measures. We uncover a closed form characterization of a risk-averse generator's optimal pre-commitment behaviour for a given real-time policy, both with and without risk trading.

Keywords

Cite

@article{arxiv.1804.08815,
  title  = {On stochastic auctions in risk-averse electricity markets with uncertain supply},
  author = {Ryan Cory-Wright and Golbon Zakeri},
  journal= {arXiv preprint arXiv:1804.08815},
  year   = {2020}
}

Comments

Short form version of article, updated for submission to Operations Research Letters