Designing Multi-Objective Optimization Model of Electricity Market Portfolio for Industrial Consumptions under Uncertainty

In deregulated electricity markets, the electricity consumer should distribute his required electricity optimally between different markets including spots markets with instantaneous price and bilateral contract markets. The present study is aimed to design a model for selecting the optimal electric...

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Main Authors: Saeed Khalili, Ebrahim Abbasi, Bardia Behnia, Mohammad Amirkhan
Format: Article
Language:English
Published: Amirkabir University of Technology 2021-12-01
Series:AUT Journal of Electrical Engineering
Subjects:
Online Access:https://eej.aut.ac.ir/article_4395_9ed5fec5e5dfb7724428b812b9241d4c.pdf
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author Saeed Khalili
Ebrahim Abbasi
Bardia Behnia
Mohammad Amirkhan
author_facet Saeed Khalili
Ebrahim Abbasi
Bardia Behnia
Mohammad Amirkhan
author_sort Saeed Khalili
collection DOAJ
description In deregulated electricity markets, the electricity consumer should distribute his required electricity optimally between different markets including spots markets with instantaneous price and bilateral contract markets. The present study is aimed to design a model for selecting the optimal electricity market portfolio, so the purchase costs can be minimized by considering a risk level. For this purpose, an optimization approach based on random planning was proposed to minimize costs and reduce power supply risk. Conditional value at risk was used as an appropriate and well-known factor for reducing unfavorable situations in decision-making under uncertain conditions. For simulations, the real information of Iran in 2018 was used as much as possible. Due to the small number of industrial subscribers, the whole population was studied. A genetic algorithm has been used to solve this optimization problem. In addition, MATLAB software was used for implementing the proposed model. The efficiency of the proposed model was proved by analyzing different sensitivities and the best components of the risk-averse decision-making purchasing portfolio in β=5 included from the energy exchange, then from the energy pool, and finally from bilateral contracts.
format Article
id doaj-art-0b806f07c3fc46c0891d7955f8af91a3
institution Kabale University
issn 2588-2910
2588-2929
language English
publishDate 2021-12-01
publisher Amirkabir University of Technology
record_format Article
series AUT Journal of Electrical Engineering
spelling doaj-art-0b806f07c3fc46c0891d7955f8af91a32025-08-20T03:26:48ZengAmirkabir University of TechnologyAUT Journal of Electrical Engineering2588-29102588-29292021-12-0153217118810.22060/eej.2021.19236.53874395Designing Multi-Objective Optimization Model of Electricity Market Portfolio for Industrial Consumptions under UncertaintySaeed Khalili0Ebrahim Abbasi1Bardia Behnia2Mohammad Amirkhan3Department of Industrial Management, Aliabad Katoul Branch, Islamic Azad University, Aliabad Katoul, IranAssociate professor at Alzahra University Tehran, IranDepartment of Industrial Engineering and Management, Rouzbahan Institute of Higher Education, Sari, IranDepartment of Industrial Engineering, Aliabad Katoul Branch, Islamic Azad University, Aliabad Katoul, IranIn deregulated electricity markets, the electricity consumer should distribute his required electricity optimally between different markets including spots markets with instantaneous price and bilateral contract markets. The present study is aimed to design a model for selecting the optimal electricity market portfolio, so the purchase costs can be minimized by considering a risk level. For this purpose, an optimization approach based on random planning was proposed to minimize costs and reduce power supply risk. Conditional value at risk was used as an appropriate and well-known factor for reducing unfavorable situations in decision-making under uncertain conditions. For simulations, the real information of Iran in 2018 was used as much as possible. Due to the small number of industrial subscribers, the whole population was studied. A genetic algorithm has been used to solve this optimization problem. In addition, MATLAB software was used for implementing the proposed model. The efficiency of the proposed model was proved by analyzing different sensitivities and the best components of the risk-averse decision-making purchasing portfolio in β=5 included from the energy exchange, then from the energy pool, and finally from bilateral contracts.https://eej.aut.ac.ir/article_4395_9ed5fec5e5dfb7724428b812b9241d4c.pdfportfolio optimizationelectricity energy marketuncertaintystochastic optimizationconditional value at risk
spellingShingle Saeed Khalili
Ebrahim Abbasi
Bardia Behnia
Mohammad Amirkhan
Designing Multi-Objective Optimization Model of Electricity Market Portfolio for Industrial Consumptions under Uncertainty
AUT Journal of Electrical Engineering
portfolio optimization
electricity energy market
uncertainty
stochastic optimization
conditional value at risk
title Designing Multi-Objective Optimization Model of Electricity Market Portfolio for Industrial Consumptions under Uncertainty
title_full Designing Multi-Objective Optimization Model of Electricity Market Portfolio for Industrial Consumptions under Uncertainty
title_fullStr Designing Multi-Objective Optimization Model of Electricity Market Portfolio for Industrial Consumptions under Uncertainty
title_full_unstemmed Designing Multi-Objective Optimization Model of Electricity Market Portfolio for Industrial Consumptions under Uncertainty
title_short Designing Multi-Objective Optimization Model of Electricity Market Portfolio for Industrial Consumptions under Uncertainty
title_sort designing multi objective optimization model of electricity market portfolio for industrial consumptions under uncertainty
topic portfolio optimization
electricity energy market
uncertainty
stochastic optimization
conditional value at risk
url https://eej.aut.ac.ir/article_4395_9ed5fec5e5dfb7724428b812b9241d4c.pdf
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AT ebrahimabbasi designingmultiobjectiveoptimizationmodelofelectricitymarketportfolioforindustrialconsumptionsunderuncertainty
AT bardiabehnia designingmultiobjectiveoptimizationmodelofelectricitymarketportfolioforindustrialconsumptionsunderuncertainty
AT mohammadamirkhan designingmultiobjectiveoptimizationmodelofelectricitymarketportfolioforindustrialconsumptionsunderuncertainty