Stochastic programming in energy

Stein W. Wallace and Stein-Erik Fleten
Additional contact information
Stein W. Wallace: Molde University College
Stein-Erik Fleten: Norwegian University of Science and Technology

GE, Growth, Math methods from EconWPA

Abstract: We give the reader a tour of good energy optimization models that explicitly deal with uncertainty. The uncertainty usually stems from unpredictability of demand and/or prices of energy, or from resource availability and prices. Since most energy investments or operations involve irreversible decisions, a stochastic programming approach is meaningful. Many of the models deal with electricity investments and operations, but some oil and gas applications are also presented. We consider both traditional cost minimization models and newer models that reflect industry deregulation processes. The oldest research coincides with the birth of linear programming, and most models within the market paradigm have not yet found their final form.

Keywords: stochastic programming; energy; regulated markets; deregulation; uncertainty; electricity; natural gas; oil (search for similar items in EconPapers)
JEL-codes: C61 Q40 Q25 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ene and nep-mic
Date: 2002-01-08, Revised 2003-11-13
Note: Type of Document - Acrobat PDF; pages: 1. Published in "Stochastic Programming", A. Ruszczynksi and A. Shapiro (eds), Vol. 10 in the series Handbooks in Operations Research and Management Science, North-Holland, 2003

Downloads: (external link)
http://129.3.20.41/eps/ge/papers/0201/0201001.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:wpa:wuwpge:0201001

Access Statistics for this paper

More papers in GE, Growth, Math methods from EconWPA
Series data maintained by EconWPA ().