A Robust Revenue Optimization Approach for Power Plant Revenue Management

摘要

This paper examines optimization of revenue of power plants facing stochastic demand with varied prices. A network optimization model is proposed for power plant revenue management under an uncertain environment. The network optimization has a stochastic programming formulation designed to capture the randomness of the unknown demand. A novel approach of robust optimization and PSO are applied to solve the problem on a scenario-basis. Decision-makers' risk aversion is considered in the objective function. Mean absolute value is used to measure risk of deviation of revenue from its expected value.