Information Uncertainty in Electricity Markets: Introducing Probabilistic Offers

Athanasios Papakonstantinou; Pierre Pinson

doi:10.1109/TPWRS.2016.2540525

Information Uncertainty in Electricity Markets: Introducing Probabilistic Offers

Athanasios Papakonstantinou
, Pierre Pinson

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Abstract

We propose a shift from the current paradigm of electricity markets treating stochastic producers similarly to conventional ones in terms of their offers. We argue that the producers’ offers should be probabilistic to reflect the limited predictability of renewable energy generation, while we should design market mechanisms to accommodate such offers. We argue that the transition from deterministic offers is a natural next step in electricity markets, by analytically proving our proposal’s equivalence with a two-price conventional market.

Original language	English
Journal	IEEE Transactions on Power Systems
Volume	31
Issue number	6
Pages (from-to)	5202 - 5203
ISSN	0885-8950
DOIs	https://doi.org/10.1109/TPWRS.2016.2540525
Publication status	Published - 2016

Bibliographical note

(c) 2016 IEEE. Personal use of this material is permitted. Permission from IEEE must be obtained for all other users, including reprinting/ republishing this material for advertising or promotional purposes, creating new collective works for resale or redistribution to servers or lists, or reuse of any copyrighted components of this work in other works

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 7 Affordable and Clean Energy

Keywords

Electricity markets
Renewable energy
Imperfect information

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10.1109/TPWRS.2016.2540525

Prob elmarketsAccepted author manuscript, 144 KB

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KW - Imperfect information

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Information Uncertainty in Electricity Markets: Introducing Probabilistic Offers

Abstract

Bibliographical note

UN SDGs

Keywords

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