Sequential Contracts for Uncertain Elecricity Resources
Hamidreza Tavafoghi

Citation
Hamidreza Tavafoghi. "Sequential Contracts for Uncertain Elecricity Resources". Talk or presentation, 28, May, 2015.

Abstract
We propose a two-time step model to capture the dynamically varying nature of renewable generation and to provide a general formulation for sequential contract design for renewable resources. Based on this model, we formulate and solve two flexible contract design problems, assuming private and public observation of the ex-post information available at time two (e.g. wind speed realization), respectively. We compare the flexible contracts with the corresponding firm contract. We show that all three forward contracts can be interpreted as menus of payment vs. quantity curves offered by the buyer to the seller. We prove that sequential flexible contracts are more beneficial for the buyer than firm contracts. We also show that the monitoring of ex-post information benefits the buyer. However, the effect of such monitoring on social welfare depends on the environment.

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Citation formats

• HTML

  Hamidreza Tavafoghi. <a
  href="http://www.cps-forces.org/pubs/68.html"
  ><i>Sequential Contracts for Uncertain Elecricity
  Resources</i></a>, Talk or presentation,  28,
  May, 2015.

• Plain text

  Hamidreza Tavafoghi. "Sequential Contracts for
  Uncertain Elecricity Resources". Talk or presentation, 
  28, May, 2015.

• BibTeX

  @presentation{Tavafoghi15_SequentialContractsForUncertainElecricityResources,
      author = {Hamidreza Tavafoghi},
      title = {Sequential Contracts for Uncertain Elecricity
                Resources},
      day = {28},
      month = {May},
      year = {2015},
      abstract = {We propose a two-time step model to capture the
                dynamically varying nature of renewable generation
                and to provide a general formulation for
                sequential contract design for renewable
                resources. Based on this model, we formulate and
                solve two flexible contract design problems,
                assuming private and public observation of the
                ex-post information available at time two (e.g.
                wind speed realization), respectively. We compare
                the flexible contracts with the corresponding firm
                contract. We show that all three forward contracts
                can be interpreted as menus of payment vs.
                quantity curves offered by the buyer to the
                seller. We prove that sequential flexible
                contracts are more beneficial for the buyer than
                firm contracts. We also show that the monitoring
                of ex-post information benefits the buyer.
                However, the effect of such monitoring on social
                welfare depends on the environment.},
      URL = {http://cps-forces.org/pubs/68.html}
  }
  

Posted by Carolyn Winter on 10 Jun 2015.
Groups: forces
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