Medium-term operation for an industrial customer considering demand side management and risk management

Abstract

Under a deregulated market environment, industrial customers can participate in multiple markets with different time range to purchase electricity. Transactions in different markets make the industrial customer involve in different level of cost uncertainties and risks. To solve this energy procurement portfolio problem, a medium-term operation model is proposed. The risk-term is measured and managed by mean-variance approach. The uncertainties in the proposed model are characterized by stochastic day-ahead and real-time prices generated based on ERCOT historical data. A sample case study is provided to illustrate and verify the proposed model.