Electricity Procurement for Large Consumers with Second Order Stochastic Dominance Constraints

Abstract

This paper presents a decision making approach for mid-term scheduling of large industrial consumers based on the recently introduced class of Stochastic Dominance (SD)- constrained stochastic programming. In this study, the electricity price in the pool as well as the rate of availability (unavailability) of the generating unit (forced outage rate) is considered as uncertain parameters. The self-scheduling problem is formulated as a stochastic programming problem with SSD constraints by generating appropriate scenarios for pool price and self-generation unit's forced outage rate. Furthermore, while most approaches optimize the cost subject to an assumed demand profile, our method enforces the electricity consumption to follow an optimum profile for mid-term time scheduling, i.e. three months (12 weeks), so that the total production will remain constant.

Keywords

• Electricity Procurement for Large Consumers
• Second Order Stochastic Dominance
• Decision making
• Uncertainty