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Operational use of marginal cost curves for a hydropower producer trading in the intraday market

Operational use of marginal cost curves for a hydropower producer trading in the intraday market

Category
Academic chapter/article/Conference paper
Abstract
In this paper we investigate the use of marginal cost curves for bidding and offering electricity in a continuous intraday market. Due to the real-time nature of the market, trading decisions must be supported in a computationally efficient manner. Taking the view of a price-taking hydropower producer, we calculate marginal cost curves heuristically for the entire working area of the plant. These curves are then used in a simulation framework where a new market event invokes a trading decision and a rescheduling process. The simulation framework is tested for a Norwegian hydropower producer responding to historical prices from the German EPEX SPOT Intraday market in order to illustrate future market conditions. We estimate a 2% increase of revenues, and interpret this as an upper bound for the particular hydropower plant.
Language
English
Author(s)
Affiliation
  • Norwegian University of Science and Technology
  • SINTEF Energy Research / Energisystemer
Year
2019
Publisher
IEEE
Book
2019 16th International Conference on the European Energy Market - EEM 2019
Issue
2019
ISBN
978-1-7281-1257-2
Page(s)
1 - 6