Uncertainty and risk management in electricity market: Challenges and opportunities

Determining Factors and Scenarios of Influence on Consumer Migration from the Regulated Market to the Deregulated Electricity Market

“…Electricity retailers are intermediaries between producers and consumers of electricity [14,23]. They are entities that buy energy in the wholesale electricity market and resell it to customers through retail contracts at a fixed price over some time, ranging from months to years [11,14]. For the closing of these contracts, retailers analyze the needs of consumers to estimate the load demand needed by each customer; this process guides the purchase of electricity, guaranteeing profits to retailers [23].…”

“…In search of this development, the world electricity market is modernizing and projects are being directed to better meet technological, economic, and political changes [9]. The electricity market is in the process of reconstruction [10], transforming the modern electrical industry into a restructured environment [11]. In many countries, electric power system transitions have already occurred or are underway [12], moving from a governmentcontrolled structure to a market-oriented context [13].…”

“…This deregulation of the retail electricity market is an important trend in the energy sector worldwide. As the number of retail participants increases, competition in this market becomes more intense, directly influencing not only the prices charged for energy, but also the quality of services provided [15], improving the performance and efficiency of energy companies [11].…”

Impact Assessment of Solar Integrated Residential Consumers on Retailer Decision-making

“…Retailers strategically procure and supply electricity to meet consumers' demand in order to maximize profits. The obligation to supply forces retailers to accommodate any variation in demand [1,2]. There is a direct link between energy demand and procurement and sale price decisions, so any variation in energy demand require retailers to revise their decisions in order to exploit maximum benefits.…”

“…Retailer minimizes procurement cost by optimal procurement from the wholesale electricity markets. However, the quantum of electricity procurement from various contracts of the portfolio depends on their availability [2]. Bilateral contracts, spot markets, thermal and renewable generations, and energy storage systems can be considered for creating a portfolio and optimizing the quantity to minimize the cost [1].…”