Insurance contract case Clause Samples

Insurance contract case. In this case, the storage and the renewable players are allowed to establish an insurance contract for reserve. In the contract, the storage supplies some amount of energy to the renewable producer in case of shortage, instead of offering this energy in the day-ahead market. The expected profit of the renewable producer in this scenario becomes Σ Jc(Cr, Gr, πr) = λkCrk − πrkGrk N−1 − ERk [I(Crk − Rk − Grk)λp(Crk − Rk − Grk)] ,