NDLI: Controlling a retailer's short-term financial risk exposure using demand response

Content Provider	IET Digital Library
Author	Brolin, Magnus Sandels, Claes
Abstract	The transition of the electric power system to reach sustainability goals leads to new market conditions with larger uncertainties. This constitutes new challenges and opportunities for new as well as for existing market players such as retailers. In a future more volatile and unpredictable market, financial risk management becomes an important element for such actors in order to achieve viable businesses. Different instruments can be applied for this purpose, where demand response can contribute in the short-term to manage risks related to price variations and imbalance costs. This study contributes to the enhancement of retailer's businesses by presenting a stochastic optimisation model exploring the possibility to apply demand response to control financial risk exposure. The model considers trading and demand response scheduling for different customer clusters, generating optimal trading volumes for day-ahead markets while also considering the possibility to trade intra-day. The optimisation considers uncertainties in prices and loads as well as imbalance settlement costs. Risk management is integrated into the model by applying conditional value-at-risk as risk measures. The developed model has also been applied in a case study with data from the Swedish and Nordic electricity market together with simulated load profiles for different customer clusters.
Starting Page	5160
Ending Page	5170
Page Count	11
ISSN	17518687
Volume Number	13
e-ISSN	17518695
Issue Number	Issue 22, Nov (2019)
Alternate Webpage(s)	https://digital-library.theiet.org/content/journals/iet-gtd/13/22
Alternate Webpage(s)	https://digital-library.theiet.org/content/journals/10.1049/iet-gtd.2018.6708
Journal	IET Generation, Transmission & Distribution
Publisher Date	2019-10-02
Access Restriction	Open
Rights Holder	© The Institution of Engineering and Technology
Subject Keyword	Conditional Value-at-risk Customer Clusters Day-ahead Markets Demand Response Scheduling Demand Side Management Electric Power System Financial Risk Exposure Financial Risk Management Imbalance Settlement Cost Market Condition Nordic Electricity Market Optimal Trading Volumes Optimisation Technique Power Market Power System Economics Power System Managemen Power System Operation Price Variations Pricing Retailer Businesses Enhancement Retailer Short-term Financial Risk Exposure Retailing Risk Management Risk Measures Simulated Load Profile Stochastic Optimisation Model Stochastic Programming Swedish Electricity Market Unpredictable Market Viable Businesses Volatile Market
Content Type	Text
Resource Type	Article
Subject	Control and Systems Engineering Energy Engineering and Power Technology Electrical and Electronic Engineering

Sl.	Authority	Responsibilities	Communication Details
1	Ministry of Education (GoI), Department of Higher Education	Sanctioning Authority	https://www.education.gov.in/ict-initiatives
2	Indian Institute of Technology Kharagpur	Host Institute of the Project: The host institute of the project is responsible for providing infrastructure support and hosting the project	https://www.iitkgp.ac.in
3	National Digital Library of India Office, Indian Institute of Technology Kharagpur	The administrative and infrastructural headquarters of the project	Dr. B. Sutradhar bsutra@ndl.gov.in
4	Project PI / Joint PI	Principal Investigator and Joint Principal Investigators of the project	Dr. B. Sutradhar bsutra@ndl.gov.in Prof. Saswat Chakrabarti will be added soon
5	Website/Portal (Helpdesk)	Queries regarding NDLI and its services	support@ndl.gov.in
6	Contents and Copyright Issues	Queries related to content curation and copyright issues	content@ndl.gov.in
7	National Digital Library of India Club (NDLI Club)	Queries related to NDLI Club formation, support, user awareness program, seminar/symposium, collaboration, social media, promotion, and outreach	clubsupport@ndl.gov.in
8	Digital Preservation Centre (DPC)	Assistance with digitizing and archiving copyright-free printed books	dpc@ndl.gov.in
9	IDR Setup or Support	Queries related to establishment and support of Institutional Digital Repository (IDR) and IDR workshops	idr@ndl.gov.in

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