Contract design and supply chain coordination in the electricity industry.

In this article we propose a model of the supply chain in electricity markets with multiple generators and retailers and considering several market structures. We analyze how market design interacts with the different types of contract and market structure to affect the coordination between the different firms and the performance of the supply chain as a whole. We compare the implications on supply chain coordination and on the players’ profitability of two different market structures: a pool based market vs. bilateral contracts, taking into consideration the relationship between futures and spot markets. Furthermore, we analyze the use of contracts for differences and two-part-tariffs as tools for supply chain coordination. We have concluded that there are multiple equilibria in the supply chain contracts and structure and that the two-part tariff is the best contract to reduce double marginalization and increase efficiency in the management of the supply chain

Electricity Trading in a Successive Oligopoly Market: A Social Welfare Comparison between the Generation and Retail Sectors’ Liberalization

This study models the electricity industry as a successive Cournot oligopoly market to compare the market performance between the generation and retail sectors’ liberalization. We show that, assuming identical fixed costs on free entry into both generation and retail sectors, liberalization of the retail sector can dominate that of the generation sector with regard to social welfare

Strategic procurement in spot and forward markets considering regulation and capacity constraints.

With the generalization of business-to-business electronic exchanges, online spot markets have become an important component of suppliers' procurement strategies in their aim to increase flexibility and reduce transaction costs. In this article we analyze, both analytically and computationally, how these online spot markets interact with forward contracts as strategic procurement tools. We consider non-storable commodity markets in which the suppliers have market power. We derive the equations describing the equilibrium of this game considering capacity constraints and regulation. We show that price caps increase forward trading and we analyze the conditions under which, in the capacitated model, some suppliers can buy forward to sell spot. Furthermore, we prove that inefficient producers continue to operate in the market as arbitrageurs, selling forward and buying spot. We model the game with asymmetric suppliers, identifying the situations in which it is well defined, and describing how these asymmetries are important for market equilibrium. Finally, we analyze a game with multiple sequential forward contracts: we prove that, when suppliers readjust their forward positions until the start of the spot market, the number of time periods (i.e., market liquidity) has neither effect on the suppliers' strategic procurement nor on market efficiency

Discriminação de preços de segundo grau: o caso das tarifas multiclasse para o registo de marcas na Colômbia

This paper shows the implementation of a second level price differentiation of industrial property price, in particular the multi-class system, this is because Colombia’s accession to Madrid’s Protocol in 2011. The methodology is based on a model to establish an optimal trademark price structure with two objectives: (i) to accomplish commitments under the TLT and encourage the use of multi-class system, and (ii) to identify a mechanism to reduce negative effects, which in terms of collection could face industrial property authority, based on the agreement in force. Among main findings, the inverse unequivocal existence between price and number of requests was identified, considering multiple factors that can affect the demand trademark service. Additionally, it was established that this differentiated price system leveraged the decrease on revenues from the industrial property management authority in Colombia given the observed demand service characteristics.Este documento presenta una aplicación de discriminación de segundo grado a las tarifas de propiedad industrial, en particular al sistema multi-clase, esto a propósito de la adhesión de Colombia al Protocolo de Madrid en 2011. La metodología consistió en la construcción de un modelo para establecer una estructura tarifaria óptima de registro de marcas con dos objetivos: (i) cumplir con las obligaciones dispuestas en el TLT e incentivar la utilización del sistema multi-clase, y (ii) identificar un mecanismo que minimizara los efectos negativos, que en materia de recaudo podría enfrentar la autoridad de propiedad industrial, con la entrada en vigencia de dicho acuerdo. Dentro de los principales hallazgos del estudio se identificó la no existencia inequívoca inversa entre tarifa marcaria y número de solicitudes, lo que da espacio a considerar múltiples factores que pueden incidir en la demanda del servicio de registros marcarios distintos a su precio. Igualmente, se estableció que este sistema de tarifas diferenciadas amortiguó el descenso de los ingresos de la autoridad administradora de propiedad industrial en Colombia dadas las características de la demanda del servicio observado.Este documento apresenta uma aplicação de discriminação de segundo grau às tarifas de propriedade industrial, em particular ao sistema multiclasse, isto a propósito da adesão da Colômbia ao Protocolo de Madri em 2011. A metodologia consistiu na construção de um modelo para estabelecer uma estrutura tarifária ótima de registo de marcas com dois objetivos: (i) cumprir com as obrigações dispostas no TLT e incentivar a utilização do sistema multiclasse, e (ii) identificar um mecanismo que minimizasse os efeitos negativos que poderia enfrentar a autoridade de propriedade industrial em matéria de arrecadação, com a entrada em vigência de dito acordo. Dentro dos principais resultados do estudo se identificou a não existência inequívoca inversa entre tarifa de marca e número de solicitações, o que dá espaço a considerar múltiplos fatores que podem incidir na demanda do serviço de registos de marcas diferentes a seu preço. Igualmente, se estabeleceu que este sistema de tarifas diferenciadas amorteceu o descenso dos rendimentos da autoridade administradora de propriedade industrial na Colômbia dadas as características da demanda do serviço observado

Forecasting day ahead electricity price using ARMA methods

The main objective in this research is to predict day-ahead prices using ARMA. Box and Jenkins developed a regression model to identify, assess and diagnose dynamic time series models in which the time variable plays a key role. In the area of EPF, several studies have already been conducted to estimate prices by ARMA: in some cases ARMA is combined with GARCH using a wavelet transform, in others a hybrid model with Radial Basis Function Neural Networks (RBFN) or with Support Vector Regression (SVR) is performed, and also a single ARIMA or the addition of a Transfer Function and Dynamic Regression have been used.Outgoin

Coordinating biomass supply chains for remote communities : a comparative analysis of non-cooperative and cooperative scenarios

The absence of economies of scale is a major barrier in use of renewable energy sources in small and dispersed off-grid remote communities. For example, in northern Canada, diesel is currently the main source of electricity and heat generation. Coordination of biomass supply chains could play a key role in improving the cost efficiency and reliability of bioenergy generation through bundled ordering and creation of storage hubs. In this study, a supply chain management model with multiple suppliers and multiple end-user communities is formulated. The proposed model enables us to analyse and compare the outcomes of adopting a cooperative coordination strategy (with a joint pay-off for communities) versus a non-cooperative coordination strategy (with individual payoffs for communities). Other peculiar attributes of the proposed model rest in the addressing of restricted ordering schedules and quantities (due to unavailability of pathways) by advocating nonlinear ordering and distribution costs (to incorporate quantity discounts) achieved through coordinated and/or collective inventories. A real biomass supply chain case study of three northernmost Nunavik communities in Quebec is considered to show the applicability of the model and provide insights for uptake of bioenergy sources in remote off-grid communities

Equilibrio oligopólico de productores eléctricos con restricciones de capacidad en mercados de energía eléctrica

Se pretende analizar un mercado oligopólico de energía eléctrica mediante simulaciones numéricas para productores basados en variaciones conjeturales. Para mostrar los resultados vamos a representar los valores del precio de equilibrio, las cantidades producidas y los beneficios obtenidos por cada uno de los productores dependiendo del valor del parámetro de reacción (δ) y de las restricciones de cantidad máxima y mínima de cada productor. La herramienta que utilizaremos para simular el mercado y así poder realizar las representaciones anteriormente nombradas, será el programa de simulación y modelización matemática GAMS y dentro de este utilizaremos el solver PATH. Una vez hechas las simulaciones procederemos a representarlas y analizarlas para sacar algunas conclusiones.Ingeniería en Tecnologías Industriale