Research on the Purchase Planning and Risk Management Mechanism of Foreign Utility Retailers*


Author:Chen, Jong-Shun




The implementation of the project by our research team is based on the Integrated Resource Planning Model (IRP) developed by PLEXOS.. In order to meet the needs of the business unit of Taipower in response to the liberalization of electricity for the power purchase decision, we introduce the technical guidance of Électricité de France S.A. (EDF), a state owned French power utility company, with their practical experience. After referring to the experience of various advanced countries, this project will be carried out simultaneously by four faces, (1) in terms of optimizing the power purchase strategy, we adjust the objective function of the IRP model from the original cost minimization, to the profit maximization, so as to establish a medium- and long-term power purchase plan; (2) in terms of the management of power purchase risk, we add VaR and CVaR asset portfolio analysis modules to assist in medium and short-term power purchase operations; (3) in terms of user friendly environment, we develop a new graphical interface and networked interface for user friendly operation, providing users information with complete and clear vision (4) In terms of database construction, through the form of EXCEL paging, coupling with the organizational restructuring, we let the different departments of Taipower fill in the responsibility area and then convert into SQL type, to establish a quantitative horizontal communication platform. The ultimate goal of this research is not only to provide immediate business unit needs, but also to quantify numerical results and deliver visual presentation. In the future, the results of this research can also be used as an important tool for negotiating and influencing government policies with internal and external stakeholders. It is for the purpose to win the company's greatest overall benefit. Key words:Integrated Resource Planning Model, The Profit Maximization, Value at Risk Analysis