Table 1 Notation
From: Time-dependent electricity pricing using variable announcement horizons
Symbol | Description |
|---|---|
H | Horizon length, i.e., time between price announcement and corresponding period. |
pflat | Constant price of a flat tariff. |
pt | Price at time t. |
xt,base | Baseline demand at time t. |
xt | Actual demand at time t. |
T | Supplier’s periods of consideration. |
w(d,s) | Waiting function. Denotes the share of demand shifted s periods when there is a relative price difference of d. |
Ct | Random procurement cost at time t. |
ct | Unbiased estimator for Ct. |
δ | Discount parameter. Denotes the average price reduction that has to be offered for TDP to be competitive. |
λ | Risk aversion parameter. |
φ1 | Forecasting quality coefficient. Dropped in augmented model. |
φ2 | Forecasting quality decay rate. |
φ | Equals φ2 in augmented model. |
Πt | Supplier’s revenue at time t. |
zc(·) | Supplier’s risk-adjusted profit. |
zflat(·) | Supplier’s risk-adjusted profit under flat pricing. |