Effects of interruptible load on purchasing portfolio for load serving entities

In a deregulated electric power system, multiple markets of different time spans exist with various power supply instruments and various fluctuating prices. A load serving entity (LSE) has multiple choices from these instruments to meet its load obligations. Since interruptible load can be looked as...

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Bibliographic Details
Published in2008 Third International Conference on Electric Utility Deregulation and Restructuring and Power Technologies pp. 297 - 300
Main Authors Jinfeng Wang, Yuzeng Li
Format Conference Proceeding
LanguageEnglish
Published IEEE 01.04.2008
Subjects
Costs
CVaR
electrical deregulation
Electricity supply industry
Forward contracts
Instruments
interruptible load
portfolio theory
Portfolios
Power generation
Power supplies
Reactive power
Risk management
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Summary:In a deregulated electric power system, multiple markets of different time spans exist with various power supply instruments and various fluctuating prices. A load serving entity (LSE) has multiple choices from these instruments to meet its load obligations. Since interruptible load can be looked as an equivalent power to support reserve service in emergency, in this paper, it is regarded as such an equivalent power as the same as day-ahead energy and forward contract energy to form a portfolio. Taking Conditional value-at-risk (CVaR) as the risk measuring index, a midterm power portfolio optimization problem with risk management is presented. The study provides an insight into interruptible load market trade and its effect on the purchasing portfolio risk. Numerical examples are carried out to illustrate that interruptible load can effectively lower purchasing portfolio loss, and also the validity and rationality of the presented model have been demonstrated.
DOI:10.1109/DRPT.2008.4523421