Cutting Edge: Co-simulation of risk factors in power markets

A simple but realistic model to co-simulate the time series of temperature, electricity load and prices is proposed

Co-simulation of risk factors in power markets
By offering full requirements load-serving contracts, LSEs complicate their risk exposure

'Full requirements' load-serving contracts are widely used in power markets. With such deals, a load-serving entity (LSE) agrees to provide all the electricity needs of its counterparty at a fix