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Multi-Criteria Decision Support in the Liberalized Energy Market

Simo Makkonen, Risto Lahdelma, Anna-Maria Asell, Antti Jokinen, Multi-Criteria Decision Support in the Liberalized Energy Market. Journal of multi-criteria decision analysis 12, 1–16, 2003.

Abstract:

The European energy market has faced a radical change during
the last 10 years and the evolution will probably
continue for several years. Liberalization of the electricity
market, unbundling of vertically integrated businesses,
scarcity of natural resources, and increasing emphasis on the
environmental effects of the energy sector have created
a new business environment, where complex, interacting
decision problems must be solved in co-ordination. These
decision problems involve a large number of variables,
multiple criteria, and they are stochastic by nature. Efficient
simulation and optimization methods are required to solve
these problems. It is also important that the results on the
different analyses can be presented to the decision-makers in
a format that they can understand. In this paper, we
focus on the strategic decision making of an electricity
retailer operating in the liberalized market. We develop a
decision support system based on stochastic simulation,
optimization and multi-criteria analysis. We demonstrate
the use of the system through a realistic case.

BibTeX entry:

@ARTICLE{jMaLaAsJo03a,
  title = {Multi-Criteria Decision Support in the Liberalized Energy Market},
  author = {Makkonen, Simo and Lahdelma, Risto and Asell, Anna-Maria and Jokinen, Antti},
  journal = {Journal of multi-criteria decision analysis},
  volume = {12},
  pages = {1–16},
  year = {2003},
  keywords = {liberalized energy market, multi-criteria decision support, energy, optimization, simulation, risk analysis},
}

Belongs to TUCS Research Unit(s): Algorithmics and Computational Intelligence Group (ACI)

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