A Nash Equilibrium Approach to the Brazilian Seasonalization of Energy Certificates

Fellipe Fernandes Goulart dos Santos, Marcus Vinícius de Castro Lobato, Douglas Alexandre Gomes Vieira, Adriano Chaves Lisboa and Rodney Rezende Saldanha
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Fellipe Fernandes Goulart dos Santos: Graduate Program in Electrical Engineering, Federal University of Minas Gerais, Belo Horizonte 31270-901, Brazil
Marcus Vinícius de Castro Lobato: Companhia Energética de Minas Gerais S.A., Belo Horizonte 30190-131, Brazil
Douglas Alexandre Gomes Vieira: Enacom, Handcrafted Technologies, Belo Horizonte 31275-100, Brazil
Adriano Chaves Lisboa: Gaia, Solutions on Demand, Belo Horizonte 31310-260, Brazil
Rodney Rezende Saldanha: Department of Electrical Engineering, Federal University of Minas Gerais, Belo Horizonte 31270-901, Brazil

Energies, 2022, vol. 15, issue 6, 1-13

Abstract: This paper presents a Nash equilibrium approach to model a non-cooperative game that takes place among Brazilian hydro-generating companies in the annual process called “seasonalization”. We have “remade” the seasonalizations that occurred in the period of 2013–2020 by using our model and comparing the financial outcomes with the current ones that resulted from the seasonalizations the generators made each year, with financial improvements in almost every year. By using the Nash equilibrium approach, it is possible to achieve optimal decisions concerning the seasonalization process that were not evident by using traditional methods. This approach is useful for companies willing to enhance their income and to improve their risk management by making better choices in seasonalization.

Keywords: seasonalization; game theory; Nash equilibrium; Brazilian energy market (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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