Forward contracts for the operation of an electricity industry under spot pricing

Journal Article · Wed Jan 31 23:00:00 EST 1990 · IEEE Transactions on Power Systems (Institute of Electrical and Electronics Engineers); (USA)

DOI:https://doi.org/10.1109/59.49085· OSTI ID:6885162

Kaye, R J; Outhred, H R ^[1]; Bannister, C H ^[2]

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1. New South Wales Univ., Kensington (Australia)
2. Intelligent Energy Systems Pty Ltd., Crowns Nest, NSW (AU)

This paper reports a study of the use of forward contracts as risk sharing instruments for electricity industries operating under spot pricing. Forward contracts involve financial transactions or commitments which relate to a physical trade at a later time instance. Price setting and appropriate participant responses are discussed. Simulation studies are used to demonstrate that forward contracts offer participants an opportunity to reduce their risk exposure without removing the incentive to respond to higher spot prices.

• OSTI ID: 6885162
• Journal Information: IEEE Transactions on Power Systems (Institute of Electrical and Electronics Engineers); (USA), Journal Name: IEEE Transactions on Power Systems (Institute of Electrical and Electronics Engineers); (USA) Vol. 5:1; ISSN ITPSE; ISSN 0885-8950
• Country of Publication: United States
• Language: English

Related Subjects

20 FOSSIL-FUELED POWER PLANTS
200600* -- Fossil-Fueled Power Plants-- Economic
Industrial
& Business Aspects-- (1990-)
29 ENERGY PLANNING, POLICY, AND ECONOMY
296000 -- Energy Planning & Policy-- Electric Power
CONTRACTS
ELECTRIC POWER
ELECTRIC POWER INDUSTRY
INDUSTRY
POWER
PRICES
SIMULATION