Optimization Model for Electricity Procuremenets and Sales Portfolio of Electrical Energy Supplier Company

Abstract

The study examined the market dynamics of an electricity supply company and proposed an optimization model aimed at enhancing its profitability in the wholesale market. This model is formulated as a mixed integer linear programming problem. By solving this optimization problem, the most advantageous contractual terms for purchasing and selling electricity from those available on the market are determined. This allows the company to efficiently manage its electricity portfolio and meet its consumption schedule as per existing supply contracts with consumers. The IBM ILOG CPLEX Optimization Studio software was employed to develop and solve the optimization problems related to the company's portfolio. The computational experiments conducted provide insights into the effectiveness of the proposed model and its practical applicability. These results demonstrate the model's adequacy and its potential for real-world implementation.