Power generation planning and risk management in a liberalised market

As the new power markets in many countries develop and (hopefully) become well-functioning, management of electricity utilities should change. We present a set of generation planning models adapted to a price taking generator in a competitive market situation. In this important special case, prices coordinate decisions of local plant managers, and hence, operational planning can be decentralised. Furthermore, we present a model for minimising the risk of the total electricity portfolio, which includes own generation resources and committed power contracts. This model captures both price risk and other sources of risk.