Loading...

Financial tools to manage dispatchable Distributed Generation economic risks

Karimi, S. A ; Sharif University of Technology | 2015

712 Viewed
  1. Type of Document: Article
  2. DOI: 10.1109/SEGE.2015.7324617
  3. Publisher: Institute of Electrical and Electronics Engineers Inc , 2015
  4. Abstract:
  5. Distributed Generation (DG) has received increasing attention during the last decade. Advantage and constraints of DG application are well known to both DG owner and electric utility. Various technologies are available for DG units among them gas GenSet is, in particular, more attractive to the investors as the technology provides the control on DG generation. However, there are various financial risks associated with dispatchable DG units that prohibit wide private investment in such technologies. This paper examines the use of financial tools to manage dispatchable DG economic risks. A comprehensive framework has been proposed to consider various economic risks to DG owner. Suitable models have been used to incorporate risk management tools, in particular the financial tools, in the problem. Optimal use of risk management tools has been determined based on conditional value-at-risk (CVaR) approach. The proposed approach has been applied to a test case and the effectiveness of the solution has been verified
  6. Keywords:
  7. Distributed Generation ; Financial tool ; Risk ; Value-at-risk ; Distributed power generation ; Economics ; Electric load dispatching ; Electric utilities ; Finance ; Insurance ; Investments ; Risks ; Smart power grids ; Value engineering ; Conditional Value-at-Risk ; Economic risks ; Financial risks ; Financial tools ; Management tool ; Private investment ; Value at Risk ; Various technologies ; Risk management
  8. Source: International Conference on Smart Energy Grid Engineering, SEGE 2015, 17 August 2015 through 19 August 2015 ; 2015 ; 9781467379328 (ISBN)
  9. URL: http://ieeexplore.ieee.org/xpl/articleDetails.jsp?arnumber=7324617