Study of impacts of physical contracts and financial contracts on bidding strategies of GENCOs

Xiaoling Chen, Y. He, Y. H. Song, Yosuke Nakanishi, Chikashi Nakanishi, Satoru Takahashi, Yoshinori Sekine

Research output: Contribution to journalArticle

16 Citations (Scopus)

Abstract

This paper studies the impacts of physical contracts and financial contracts on the bidding strategies of GENCOs, including Physical Bilateral Contracts, Contracts for Difference (CfDs), Call Options and Put Options under discriminatory pricing mechanism. The integrated bidding decision model is applied, which has three main modules - probabilistic local marginal price simulator, market-oriented unit commitment model and multi-criteria decision system. The numerical results show that the GENCO will choose different bidding strategies if it holds different types of contract. The results also suggest that CfDs have the best performance for risk alleviation.

Original languageEnglish
Pages (from-to)715-723
Number of pages9
JournalInternational Journal of Electrical Power and Energy System
Volume26
Issue number9
DOIs
Publication statusPublished - 2004 Nov
Externally publishedYes

Fingerprint

Simulators
Costs

Keywords

  • Bidding strategy
  • Contract
  • Electricity markets
  • Risk management

ASJC Scopus subject areas

  • Energy Engineering and Power Technology
  • Electrical and Electronic Engineering

Cite this

Study of impacts of physical contracts and financial contracts on bidding strategies of GENCOs. / Chen, Xiaoling; He, Y.; Song, Y. H.; Nakanishi, Yosuke; Nakanishi, Chikashi; Takahashi, Satoru; Sekine, Yoshinori.

In: International Journal of Electrical Power and Energy System, Vol. 26, No. 9, 11.2004, p. 715-723.

Research output: Contribution to journalArticle

Chen, Xiaoling ; He, Y. ; Song, Y. H. ; Nakanishi, Yosuke ; Nakanishi, Chikashi ; Takahashi, Satoru ; Sekine, Yoshinori. / Study of impacts of physical contracts and financial contracts on bidding strategies of GENCOs. In: International Journal of Electrical Power and Energy System. 2004 ; Vol. 26, No. 9. pp. 715-723.
@article{ffd05ffe5f884a528f5ae71f3c68969b,
title = "Study of impacts of physical contracts and financial contracts on bidding strategies of GENCOs",
abstract = "This paper studies the impacts of physical contracts and financial contracts on the bidding strategies of GENCOs, including Physical Bilateral Contracts, Contracts for Difference (CfDs), Call Options and Put Options under discriminatory pricing mechanism. The integrated bidding decision model is applied, which has three main modules - probabilistic local marginal price simulator, market-oriented unit commitment model and multi-criteria decision system. The numerical results show that the GENCO will choose different bidding strategies if it holds different types of contract. The results also suggest that CfDs have the best performance for risk alleviation.",
keywords = "Bidding strategy, Contract, Electricity markets, Risk management",
author = "Xiaoling Chen and Y. He and Song, {Y. H.} and Yosuke Nakanishi and Chikashi Nakanishi and Satoru Takahashi and Yoshinori Sekine",
year = "2004",
month = "11",
doi = "10.1016/j.ijepes.2004.06.001",
language = "English",
volume = "26",
pages = "715--723",
journal = "International Journal of Electrical Power and Energy Systems",
issn = "0142-0615",
publisher = "Elsevier Limited",
number = "9",

}

TY - JOUR

T1 - Study of impacts of physical contracts and financial contracts on bidding strategies of GENCOs

AU - Chen, Xiaoling

AU - He, Y.

AU - Song, Y. H.

AU - Nakanishi, Yosuke

AU - Nakanishi, Chikashi

AU - Takahashi, Satoru

AU - Sekine, Yoshinori

PY - 2004/11

Y1 - 2004/11

N2 - This paper studies the impacts of physical contracts and financial contracts on the bidding strategies of GENCOs, including Physical Bilateral Contracts, Contracts for Difference (CfDs), Call Options and Put Options under discriminatory pricing mechanism. The integrated bidding decision model is applied, which has three main modules - probabilistic local marginal price simulator, market-oriented unit commitment model and multi-criteria decision system. The numerical results show that the GENCO will choose different bidding strategies if it holds different types of contract. The results also suggest that CfDs have the best performance for risk alleviation.

AB - This paper studies the impacts of physical contracts and financial contracts on the bidding strategies of GENCOs, including Physical Bilateral Contracts, Contracts for Difference (CfDs), Call Options and Put Options under discriminatory pricing mechanism. The integrated bidding decision model is applied, which has three main modules - probabilistic local marginal price simulator, market-oriented unit commitment model and multi-criteria decision system. The numerical results show that the GENCO will choose different bidding strategies if it holds different types of contract. The results also suggest that CfDs have the best performance for risk alleviation.

KW - Bidding strategy

KW - Contract

KW - Electricity markets

KW - Risk management

UR - http://www.scopus.com/inward/record.url?scp=4043065663&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=4043065663&partnerID=8YFLogxK

U2 - 10.1016/j.ijepes.2004.06.001

DO - 10.1016/j.ijepes.2004.06.001

M3 - Article

AN - SCOPUS:4043065663

VL - 26

SP - 715

EP - 723

JO - International Journal of Electrical Power and Energy Systems

JF - International Journal of Electrical Power and Energy Systems

SN - 0142-0615

IS - 9

ER -