Energy Systems

, Volume 5, Issue 2, pp 349–369 | Cite as

A description of the operative decision-making process of a power generating company on the Nordic electricity market

Original Paper

Abstract

In a liberalised electricity market, power generating companies face various trading possibilities. In addition, they have to take scheduling decisions. Both kinds of decisions are affected by uncertainties, e.g. power plant outages, uncertain market prices for electricity or imperfect wind power forecasts. This paper presents an overview of the decision-making process of a power generating company on the Nordic electricity market and illustrates how uncertainties affect this process. As a power generating company’s return on investment arises—at least partly—from its trading and scheduling decisions, it is important to optimise those decisions. Therefore, selected optimisation models are listed in a condensed manner. The paper also includes a both detailed and comprehensive description of the market design in the Nordic countries.

Keywords

Electricity trading Power producer Nordic power system Decisions under uncertainty Bidding strategy Risk management  

Notes

Acknowledgments

The authors are grateful to the reviewers of the journal as well as Karin Eketorp, Pär Holmberg, Ewa Lazarczyk, Richard Manton, Mia Westerlund, and participants of the YEEES seminar in autumn 2013 for their detailed and constructive comments.

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Copyright information

© Springer-Verlag Berlin Heidelberg 2014

Authors and Affiliations

  • Richard Scharff
    • 1
  • Jonas Egerer
    • 2
    • 3
  • Lennart Söder
    • 1
  1. 1.Electric Power Systems, School of Electrical EngineeringKTH Royal Institute of TechnologyStockholmSweden
  2. 2.Workgroup for Infrastructure PolicyBerlin University of TechnologyBerlinGermany
  3. 3.Department of Energy, Transportation, EnvironmentGerman Institute for Economic Research (DIW Berlin)BerlinGermany

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