Mid-term operation planning with risk management of generation company in electricity market environment

In electricity market environment, the generation company designs its mid-term operation planning to maximize its profits, which should consider the unit maintenance scheduling and the business strategies for both the spot and contract markets, with risk management. A mid-term operation planning model is developed for the generation company, which employs CVaR (Conditional Value-at-Risk) model to measure the risk. It takes both the maximization of the expected profit and the minimization of the risk into account, within the impact of transmission congestion on the contract transaction. Then, the yearly generation plan is converted into daily generation plan with the operating constraints of the generating unit included, and an algorithm integrating the Genetic Algorithm and Monte Carlo method is served for solving the problem. With an example, the basic features of proposed method are explained and the impacts of relevant factors, such as contract parameters and confidence level, on the decision-making utility of the generation company are analyzed.