Value-Creation Potential from Multi-Market Trading for a Hydropower Producer
AbstractWe study a hydropower producer’s potential for value-creation from multi-market trading given the price variations in the markets and the flexibility provided through access to hydro reservoirs. We use a perfect foresight optimization model for a price-taking hydropower producer co-optimizing his trades in the day-ahead, intra-day and balancing markets. The model is used on real market data from Norway, Sweden and Germany. The study shows a theoretical potential for added value when selling energy in multiple markets relative to optimal day-ahead sale. Most of this value is achievable also when the perfect foresight is limited to the period from day-ahead bidding until operation. Flexible production plants achieve the largest relative added values for multi-market sales, and has the largest benefit from a long horizon with perfect foresight. View Full-Text
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Fodstad, M.; Aarlott, M.M.; Midthun, K.T. Value-Creation Potential from Multi-Market Trading for a Hydropower Producer. Energies 2018, 11, 16.
Fodstad M, Aarlott MM, Midthun KT. Value-Creation Potential from Multi-Market Trading for a Hydropower Producer. Energies. 2018; 11(1):16.Chicago/Turabian Style
Fodstad, Marte; Aarlott, Mats M.; Midthun, Kjetil T. 2018. "Value-Creation Potential from Multi-Market Trading for a Hydropower Producer." Energies 11, no. 1: 16.
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