Authors:
- Systematically examines the uncertainties power companies are facing in competitive markets
- Develops and applies mathematical, operations research methods to describe and manage these uncertainties
- Some of the application fields include: market and price modeling with combined fundamental and finance models, optimization of generation and trading portfolios including CHP in the short and medium term, risk management using an integral earnings at risk measure adapted to market structure and market liquidity, technology assessment for fuel cells, long-term optimal generation portfolios under fuel price uncertainty
Part of the book series: International Series in Operations Research & Management Science (ISOR, volume 77)
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Table of contents (10 chapters)
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Front Matter
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Back Matter
About this book
Around the world, liberalization and privatization in the electricity industry have lead to increased competition among utilities. At the same time, utilities are now exposed more than ever to risk and uncertainties, which they cannot pass on to their customers through price increases as in a regulated environment. Especially electricity-generating companies have to face volatile wholesale prices, fuel price uncertainty, limited long-term hedging possibilities and huge, to a large extent, sunk investments.
In this context, Uncertainty in the Electric Power Industry: Methods and Models for Decision Support aims at an integrative view on the decision problems that power companies have to tackle. It systematically examines the uncertainties power companies are facing and develops models to describe them - including an innovative approach combining fundamental and finance models for price modeling. The optimization of generation and trading portfolios under uncertainty is discussed with particular focus on CHP and is linked to risk management. Here the concept of integral earnings at risk is developed to provide a theoretically sound combination of value at risk and profit at risk approaches, adapted to real market structures and market liquidity. Also methods for supporting long-term investment decisions are presented: technology assessment based on experience curves and operation simulation for fuel cells and a real options approach with endogenous electricity prices.
Reviews
From the reviews of the first edition:
"This monograph applies a large amount of mathematics to modelling the uncertainity facing the electric power industry, mostly in Europe and especially in Germany. … With over 400 references, 300 equations, 100 figures, and 40 tables, the overall treatment is nothing less than encyclopedic." (Roy Gardner, Zentralblatt MATH, Vol. 1074, 2005)
Authors and Affiliations
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Institut for Energy, Economics and Rational Use of Energy, University of Stuttgart, Germany
Christoph Weber
Bibliographic Information
Book Title: Uncertainty in the Electric Power Industry
Book Subtitle: Methods and Models for Decision Support
Authors: Christoph Weber
Series Title: International Series in Operations Research & Management Science
DOI: https://doi.org/10.1007/b100484
Publisher: Springer New York, NY
eBook Packages: Engineering, Engineering (R0)
Copyright Information: Springer-Verlag New York 2005
Hardcover ISBN: 978-0-387-23047-4Published: 01 October 2004
Softcover ISBN: 978-1-4419-2000-3Published: 15 October 2014
eBook ISBN: 978-0-387-23048-1Published: 06 January 2006
Series ISSN: 0884-8289
Series E-ISSN: 2214-7934
Edition Number: 1
Number of Pages: XXV, 294
Topics: Energy Policy, Economics and Management, Engineering Economics, Organization, Logistics, Marketing, Mathematical and Computational Engineering, Probability Theory and Stochastic Processes, Operations Research/Decision Theory, Energy Policy, Economics and Management