Consider a generator who has a contract-for-difference with a consumer for a certain hour for 100 MW at $50/MWh. After the operation time in question passes, it turns out the generation unit's output was measured at 105 MW and the price offer of the last unit that was dispatched in the pool was $30/MWh. What will be the revenue collected by this generator for this hour?

Consider a generator who has a contract-for-difference with a consumer for a certain hour for 100 MW at $50/MWh. After the operation time in question passes, it turns out the generation unit's output was measured at 105 MW and the price offer of the last unit that was dispatched in the pool was $30/MWh. What will be the revenue collected by this generator for this hour?

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter4: Extent (how Much) Decisions

Section: Chapter Questions

Problem 4.2IP

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