Energy Allocation with Risk Management in Electricity Markets
In the past thirty years, we have witnessed the deregulation in the electrical power industry in many countries, such as UK, Norway, Chile, USA, New Zealand, Australia and Canada. The aim of deregulation is to enhance the efficiency of electric energy production and distribution, increase quality and security of power systems and reduce electricity prices. The deregulation process introduces the concept of an electricity market. In the electricity market, traditional power industry is reconstructed, and a series issues, such as market trading, power system security & control, electricity price etc., arise. Among these issues, electricity prices attract the most attention.
Sample Chapter(s)
Content (180 KB)
Components of the Book:
  • List of Abbreviations
  • 1. Introduction
    • 1.1 Risk
    • 1.2 Risk Management
    • 1.3 Focus of This Book
    • 1.4 Book Outline
  • 2. Risk and Utility Theory
    • 2.1 Introduction
    • 2.2 Risk and Decision Rules
    • 2.3 The Modern Theory of Utility
    • 2.4 Stochastic Dominance Rules
    • 2.5 The Mean-Variance Criterion (MVC)
    • 2.6 Summary
  • 3. Modern Portfolio Theory
    • 3.1 Introduction
    • 3.2 Risk and Risk Aversion
    • 3.3 Capital Allocation between the Risky Asset and the Risk-Free Asset
    • 3.4 Optimal Risky Portfolios
    • 3.5 Summary
  • 4. Energy Allocation between Spot Market and Contract Market
    • 4.1 Introduction
    • 4.2 A Simple Case—Energy Allocation in a Uniform Marginal Pricing Market
    • 4.3 General Case—Energy Allocation in a Zonal Pricing/LMP Electricity Market
    • 4.4 Summary
  • 5. Impact of Hedging on Energy Allocation
    • 5.1 Introduction
    • 5.2 Impact of Futures Contracts on Energy Allocation
    • 5.3 Impact of Transmission Rights on Energy Allocation
    • 5.4 Summary
  • 6. Impact of Fuel Market on Energy Allocation
  • 7. A Framework of Risk Management for Gencos’ Trading in the Electricity Market
  • Appendices
  • References
Readership: Students, academics, teachers, and other people attending or interested in Energy Allocation with Risk Management in Electricity Markets.

List of Abbreviations
Min Liu
PDF (148 KB)

1. Introduction
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PDF (387 KB)

2. Risk and Utility Theory
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PDF (327 KB)

3. Modern Portfolio Theory
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PDF (412 KB)

4. Energy Allocation between Spot Market and Contract Market
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PDF (534 KB)

5. Impact of Hedging on Energy Allocation
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PDF (528 KB)

6. Impact of Fuel Market on Energy Allocation
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PDF (389 KB)

7. A Framework of Risk Management for Gencos’ Trading in the Electricity Market
Min Liu
PDF (313 KB)

Appendices
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PDF (182 KB)

References
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PDF (243 KB)
Min Liu
Female, born in April 1972 in Anshun City, Guizhou Province, China. She received her Ph.D. degree from the University of Hong Kong in 2004 and is currently a professor and vice dean at the School of Electrical Engineering, Guizhou University, China.

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