skip to main content
10.1145/3674225.3674322acmotherconferencesArticle/Chapter ViewAbstractPublication PagespeaiConference Proceedingsconference-collections
research-article

Strategy for Contract Signing in Coal-fired Power Enterprises based on Multi-time Period Stochastic Planning

Published: 31 July 2024 Publication History

Abstract

With the deepening of the construction of provincial-level electricity markets in China, new requirements have been proposed for risk management in coal-fired power enterprises. Firstly, forward contracts include contracts of different time scales such as annual, monthly, and weekly, meaning that the signing of medium to long-term contracts by coal-fired power enterprises needs to consider the influence of time periods. Secondly, coal price fluctuations have become an important factor in the cost fluctuations of coal-fired power enterprises and require special attention. Finally, new contract forms such as Contract for Differences have emerged, requiring further examination of their characteristics. This paper constructs a multi-stage stochastic planning model to implement the optimization of the contract signing strategy for coal-fired power enterprises. The model uses time-consistent stage conditional risk value and overall conditional risk value indicators to evaluate risk and uses risk constraints to construct a risk strategy model, effectively capturing the time characteristics of contract signing. By integrating coal price fluctuations, electricity price fluctuations, and other factors in the scenario, it facilitates the consideration of various complex elements. Case studies based on actual data validate the correctness and characteristics of the proposed method.

References

[1]
Algarvio H. Management of local citizen energy communities and bilateral contracting in multi-agent electricity markets. Smart Cities 2021,4(4):1437–1453.
[2]
Takuji Matsumoto, Yuji Yamada. Simultaneous hedging strategy for price and volume risks in electricity businesses using energy and weather derivatives1. Energy Economics. 2021, 95:105101.
[3]
Faia R, Pinto T, Vale Z, Corchado J. Portfolio optimization of electricity markets participation using forecasting error in risk formulation. Int J Electr Power Energy Syst.2021,129:106739
[4]
Sandeep Chawda, Rohit Bhakar, Parul Mathuria. Uncertainty and Risk Management in Electricity Market: Challenges and Opportunities. 2016 National Power Systems Conference (NPSC), Bhubaneswar, India, 2016: 1-6.
[5]
P.Falbo, D.Felletti, S.Stefani. Integrated risk management for an electricity producer. European Journal of Operational Research 2010,207: 1620–1627.
[6]
Xiaohong Guan, Jiang Wu, Feng Gao, Guoji Sun. Optimization-Based Generation Asset Allocation for Forward and Spot Markets. IEEE Trans. on Power Systems, 2008, 23 (4): 1796-1808.
[7]
Arega Getaneh Abate, Rossana Riccardi, Carlos Ruiz. Contract design in electricity markets with high penetration of renewables: A two-stage approach. Omega. 2022,111:102666
[8]
Ana Sofia Aranha, Alexandre Street, Cristiano Fernandes. Risk-Constrained Optimal Dynamic Trading Strategies Under Short- and Long-Term Uncertainties. IEEE TRANSACTIONS ON POWER SYSTEMS. 2023,38(2):1474-1486.
[9]
A. Yucekaya. Electricity trading for coal-fired power plants in Turkish power market considering uncertainty in spot, derivatives and bilateral contract market. Renewable and Sustainable Energy Reviews. 2022, 159:112189.
[10]
Gue Lianzhe, Li Xiaojun, Tan Zhongfu. Mathematic models and dynamic analysis for influence of fluctuating coal price on pool purchasing price. Power System Technology, 2005, 29(7):7-11.
[11]
Dong W, Chen X Q, Yang Q. Data-driven scenario generation of renewable energy production based on controllable generative adversarial networks with interpretability. Applied Energy,2022,308:118387.
[12]
Poncelet K, Member S, Hanspeter H, Selecting representative days for capturing the implications of integrating intermittent renewable in generation expansion planning problems. IEEE Transactions on Power Systems, 2017, 32(3): 1936-1948.
[13]
Pichler A, Liu R P, Shapiro A. Risk-averse stochastic programming: Time consistency and optimal stopping. Operations Research, 2022, 70(4): 2439-2455.
[14]
Darryl R. Biggar, Mohammad Reza Hesamzadeh. An integrated theory of dispatch and hedging in wholesale electric power markets. Energy Economics. 2022, 112:106055.
[15]
Shanxi Power Trading Center. Shanxi power trading center daily market information. Shanxi power trading center information release website, 2022, http://pmos.sx.sgcc.com.cn/.

Index Terms

  1. Strategy for Contract Signing in Coal-fired Power Enterprises based on Multi-time Period Stochastic Planning

    Recommendations

    Comments

    Information & Contributors

    Information

    Published In

    cover image ACM Other conferences
    PEAI '24: Proceedings of the 2024 International Conference on Power Electronics and Artificial Intelligence
    January 2024
    969 pages
    ISBN:9798400716638
    DOI:10.1145/3674225
    Permission to make digital or hard copies of all or part of this work for personal or classroom use is granted without fee provided that copies are not made or distributed for profit or commercial advantage and that copies bear this notice and the full citation on the first page. Copyrights for components of this work owned by others than the author(s) must be honored. Abstracting with credit is permitted. To copy otherwise, or republish, to post on servers or to redistribute to lists, requires prior specific permission and/or a fee. Request permissions from [email protected].

    Publisher

    Association for Computing Machinery

    New York, NY, United States

    Publication History

    Published: 31 July 2024

    Permissions

    Request permissions for this article.

    Check for updates

    Qualifiers

    • Research-article
    • Research
    • Refereed limited

    Conference

    PEAI 2024

    Contributors

    Other Metrics

    Bibliometrics & Citations

    Bibliometrics

    Article Metrics

    • 0
      Total Citations
    • 10
      Total Downloads
    • Downloads (Last 12 months)10
    • Downloads (Last 6 weeks)1
    Reflects downloads up to 17 Feb 2025

    Other Metrics

    Citations

    View Options

    Login options

    View options

    PDF

    View or Download as a PDF file.

    PDF

    eReader

    View online with eReader.

    eReader

    HTML Format

    View this article in HTML Format.

    HTML Format

    Figures

    Tables

    Media

    Share

    Share

    Share this Publication link

    Share on social media