Chapter 5. Arbitrage in Electricity Markets

  1. Mohammad Shahidehpour Ph.D.1,
  2. Hatim Yamin Ph.D.2 and
  3. Zuyi Li Ph.D.3

Published Online: 15 MAY 2002

DOI: 10.1002/047122412X.ch5

Market Operations in Electric Power Systems: Forecasting, Scheduling, and Risk Management

Market Operations in Electric Power Systems: Forecasting, Scheduling, and Risk Management

How to Cite

Shahidehpour, M., Yamin, H. and Li, Z. (2002) Arbitrage in Electricity Markets, in Market Operations in Electric Power Systems: Forecasting, Scheduling, and Risk Management, John Wiley & Sons, Inc., New York, USA. doi: 10.1002/047122412X.ch5

Author Information

  1. 1

    Electrical and Computer Engineering Department, Illinois Institute of Technology, Chicago, Illinois

  2. 2

    Energy Information System Department, ABB Information System, Raleigh, North Carolina

  3. 3

    Research and Development Department, Global Energy Markets Solutions (GEMS), Minneapolis, Minnesota

Publication History

  1. Published Online: 15 MAY 2002
  2. Published Print: 3 APR 2002

ISBN Information

Print ISBN: 9780471443377

Online ISBN: 9780471224129

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Keywords:

  • electricity markets;
  • arbitrage;
  • power market

Summary

This chapter presents arbitrage in the general sense, and then discusses arbitrage opportunities in power markets. The two specific types of arbitrage opportunity that are considered in a power market include same-commodity arbitrage and cross-commodity arbitrage. Cross-commodity arbitrage in a power market is the subject of this chapter and is discussed in detail. Examples are presented to illustrate how arbitrage can be realized in this market.