Article ID: | iaor20105613 |
Volume: | 58 |
Issue: | 4-Part-2 |
Start Page Number: | 1210 |
End Page Number: | 1219 |
Publication Date: | Jul 2010 |
Journal: | Operations Research |
Authors: | Pritchard Geoffrey, Zakeri Golbon, Philpott Andrew |
Keywords: | programming: probabilistic |
We discuss a stochastic-programming-based method for scheduling electric power generation subject to uncertainty. Such uncertainty may arise from either imperfect forecasting or moment-to-moment fluctuations, and on either the supply or the demand side. The method gives a system of locational marginal prices that reflect the uncertainty, and these may be used in a market settlement scheme in which payment is for energy only. We show that this scheme is revenue adequate in expectation.