Electricity trading for coal-fired power plants in Turkish power market considering uncertainty in spot, derivatives and bilateral contract market

dc.contributor.author Yücekaya, Ahmet Deniz
dc.contributor.other Industrial Engineering
dc.date.accessioned 2023-10-19T15:12:15Z
dc.date.available 2023-10-19T15:12:15Z
dc.date.issued 2022
dc.department Yücekaya, Ahmet en_US
dc.department-temp [Yucekaya, A.] Kadir Has Univ, Dept Ind Engn, Istanbul, Turkey en_US
dc.description.abstract In deregulated power markets, electricity suppliers have the option to trade in the spot market, derivatives market, and bilateral contract market. The spot market is always available and open to competition, but the variability and risk incurred need to be carefully handled. The suppliers might allocate their capacity in the derivatives and bilateral contract market if these alternatives are more viable. The strike price, bilateral contract price, and spot market prices need to be used to decide the capacity allocation problem considering the generation cost of the supplier. This paper first examines the market design and electricity trading in the Turkish electricity market. Then three problems were proposed for a coal-fired coal unit that aims to allocate its capacity to spot, derivative, and bilateral contract markets to maximize its expected profit. A Monte Carlo method is used for allocated electricity capacities, spot market, strike, and bilateral contract price scenarios. A simulation methodology is then proposed that includes capacities allocated to each market and price scenarios. The best capacity allocation strategy is determined that return the highest expected profits for all market price samples. The model is illustrated for a coal unit in the Turkish electricity market. The results are presented for the case, including 100 spot price samples, 100 capacity scenarios, 3 scenarios for the strike, and bilateral contract prices. The sensitivity analysis for spot price volatility on the profit is also presented with 20% volatility increase. It is shown that allocating the capacity to more than one market can increase the total expected profit for a power supplier and the rate of increase varies depending on the scenario set. en_US
dc.identifier.citationcount 12
dc.identifier.doi 10.1016/j.rser.2022.112189 en_US
dc.identifier.issn 1364-0321
dc.identifier.issn 1879-0690
dc.identifier.issn 1364-0321
dc.identifier.issn 1879-0690
dc.identifier.scopus 2-s2.0-85123822027 en_US
dc.identifier.scopusquality Q1
dc.identifier.uri https://doi.org/10.1016/j.rser.2022.112189
dc.identifier.uri https://hdl.handle.net/20.500.12469/5391
dc.identifier.volume 159 en_US
dc.identifier.wos WOS:000786655300004 en_US
dc.identifier.wosquality Q1
dc.institutionauthor Yücekaya, Ahmet
dc.khas 20231019-WoS en_US
dc.language.iso en en_US
dc.publisher Pergamon-Elsevier Science Ltd en_US
dc.relation.ispartof Renewable & Sustainable Energy Reviews en_US
dc.relation.publicationcategory Makale - Uluslararası Hakemli Dergi - Kurum Öğretim Elemanı en_US
dc.rights info:eu-repo/semantics/closedAccess en_US
dc.scopus.citedbyCount 25
dc.subject Price En_Us
dc.subject Strategies En_Us
dc.subject Futures En_Us
dc.subject Risk En_Us
dc.subject Competition En_Us
dc.subject Generation En_Us
dc.subject Management En_Us
dc.subject Design En_Us
dc.subject Price
dc.subject Strategies
dc.subject Electricity trading en_US
dc.subject Futures
dc.subject Spot market en_US
dc.subject Risk
dc.subject Derivatives market en_US
dc.subject Competition
dc.subject Bilateral contract en_US
dc.subject Generation
dc.subject Monte Carlo simulation en_US
dc.subject Management
dc.subject Deregulation en_US
dc.subject Design
dc.subject Contracts for difference en_US
dc.title Electricity trading for coal-fired power plants in Turkish power market considering uncertainty in spot, derivatives and bilateral contract market en_US
dc.type Article en_US
dc.wos.citedbyCount 20
dspace.entity.type Publication
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