PROJECT TITLE :

GenCo's Integrated Trading Decision Making to Manage Multimarket Uncertainties

ABSTRACT:

Fossil fuel generation firms (GenCos) trade in multiple unsure energy markets: fuel and carbon markets on upstream facet whereas electricity market on downstream aspect. Global economic and environmental advantages lead these markets to pursue overlapping goals, creating them highly interactive. GenCos could identify optimal trading strategies for upstream and downstream trading in an integrated framework, to manage an overall secure and profitable position. Additional, severe unpredictability of energy market costs may necessitate a GenCo to create trading plans that perform better meeting its goals. Below severe uncertainty of concerned markets, this paper proposes Info Gap Call Theory (IGDT) based mostly approach to pick out three interrelated trading portfolios, in an integrated framework. Results from a realistic case study give a comprehensive decision insight to deal with risk-averse and risk-seeking behavior of GenCo, explicitly highlighting importance of co-variation in costs of interactive markets.