This paper analyzes a unit-contingent power purchase agreement between an electricity distributor and a power plant. Under such a contract the distributor pays the plant a fixed price if the plant is operational and nothing if plant outage occurs. Pricing a unit-contingent contract is...

Energy generation from intermittent renewable sources introduces additional variability into electrical systems, resulting in a higher cost of balancing against the increased variabilities. Ways to balance demand and supply for electricity include using flexible generation resources, storage...

The value of seasonal energy storage depends on how the firm best operates the storage to capture the seasonal price spread. Energy storage operations typically face limited operational flexibility characterized by the speed of storing and releasing energy. A widely used practice-based...