Forward Contracting and Selling Price Determination for a Retailer

@article{Carrion2007ForwardCA,
  title={Forward Contracting and Selling Price Determination for a Retailer},
  author={M. Carmen Carrion and A. J. Conejo and J. M. Arroyo},
  journal={IEEE Transactions on Power Systems},
  year={2007},
  volume={22},
  pages={2105-2114}
}
To procure the electric energy to be sold to its clients, a retailer has to face two major difficulties. While buying electric energy, it must cope with uncertain pool prices or sign forward contracts at higher average prices. While selling electricity, it should handle the uncertainty of the end-user demand and the fact that customers might choose a different retailer if the selling price is not competitive enough. We propose a risk-constrained stochastic programming framework to decide which… CONTINUE READING
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