Special Session 145: Dynamic Models under Uncertainty in Economics and Finance

An Optimal Energy Production Problem with Energy Source Switching and Load Following Nuclear Power Plants
Athena Picarelli
University of Verona
Italy
Co-Author(s):    Fabio Baschetti, Alessandro Gnoatto
Abstract:
The paper deals with a optimal energy production problem where the producer aims to match at any time a prescribed demand managing two types of energy sources: a renewable energy source subject to randomness and seasonality on one hand, and a controllable deterministic system of production (e.g. nuclear) on the other hand. The problem is formulated as a optimal switching problem over three possible regimes representing the increasing/decreasing/constancy of the nuclear production rate.