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Full-Text Articles in Operations Research, Systems Engineering and Industrial Engineering
Cost Allocation For Transmission Investment Using Agent-Based Game Theory, Jakapun Mepokee, David Lee Enke, Badrul H. Chowdhury
Cost Allocation For Transmission Investment Using Agent-Based Game Theory, Jakapun Mepokee, David Lee Enke, Badrul H. Chowdhury
Engineering Management and Systems Engineering Faculty Research & Creative Works
Due to electrical power restructuring, a dramatic change has been made to the generation and transmission sectors of the power industry. Rules and legislation are continuously changing. To promote more competition, transmission has to be expanded or upgraded to remove congestion and market power. The cost allocation of new investment in transmission has to be recalculated. The socialization methods of the past have been shown to be unfair to some market and network participants. The decentralization of cost allocation must be considered. The proposed paper provides a comparison between traditional cost allocation methods and a new cost allocation method based …
Exercising Real Unit Operational Options Under Price Uncertainty, Chung-Li Tseng
Exercising Real Unit Operational Options Under Price Uncertainty, Chung-Li Tseng
Engineering Management and Systems Engineering Faculty Research & Creative Works
In this paper, we use the real options framework to value the operation flexibility of a power plant. The power plant operation is formulated as a multi-stage stochastic problem. We assume that there are hourly spot markets for both electricity and the fuel used by the generator, and that their prices follow some Ito processes. At each hour, the power plant operator must decide whether or not to run the unit so as to maximize expected profit. However, the unit operation is subject to decision lead times and minimum uptime and downtime constraints, so the commitment decision must take into …