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Due to major shifts in European energy supply, a structural change can be observed in Austrian electricity spot price data starting from the second quarter of the year 2021 onward. In this work we study the performance of two different…

Mathematical Finance · Quantitative Finance 2024-04-24 Christian Laudagé , Florian Aichinger , Sascha Desmettre

Modeling price risks is crucial for economic decision making in energy markets. Besides the risk of a single price, the dependence structure of multiple prices is often relevant. We therefore propose a generic and easy-to-implement method…

Econometrics · Economics 2023-03-03 Oliver Grothe , Fabian Kächele , Fabian Krüger

In this work we considered several hybrid modelling approaches for forecasting energy spot prices in EPEC market. Hybridization is performed through combining a Naive model, Fourier analysis, ARMA and GARCH models, a mean-reversion and…

Statistical Finance · Quantitative Finance 2020-10-19 Tahir Miriyev , Alessandro Contu , Kevin Schafers , Ion Gabriel Ion

Electricity prices strongly depend on seasonality of different time scales, therefore any forecasting of electricity prices has to account for it. Neural networks have proven successful in short-term price-forecasting, but complicated…

Applications · Statistics 2022-02-03 Andreas Wagner , Enislay Ramentol , Florian Schirra , Hendrik Michaeli

The increasing penetration of variable renewable energy and flexible demand technologies, such as electric vehicles and heat pumps, introduces significant uncertainty in power systems, resulting in greater imbalance; defined as the…

Statistical Finance · Quantitative Finance 2025-09-08 Timothée Hornek , Sergio Potenciano Menci , Ivan Pavić

Efforts to reduce climate change, but also falling prices and significant technology developments currently drive an increased weather-dependent electricity production from renewable electricity sources. In light of the changing climate, it…

Signal Processing · Electrical Eng. & Systems 2019-06-10 Smail Kozarcanin , Hailiang Liu , Gorm Bruun Andresen

In 2022, energy prices skyrocketed across Europe, with average day-ahead spot market prices in Germany 2.43 times higher than the previous year, hinting at future trends. At the same time, electricity infrastructure is expected to be…

Physics and Society · Physics 2024-04-30 Judith Stute , Sabine Pelka , Matthias Kühnbach , Marian Klobasa

Since the 1990s, widespread introduction of central (wholesale) electricity markets has been seen across multiple continents, driven by the search for efficient operation of the power grid through competition. The increase of renewables has…

Systems and Control · Electrical Eng. & Systems 2025-10-15 Pål Forr Austnes , Matthieu Jacobs , Lu Wang , Mario Paolone

In this paper, a multivariate constrained robust M-regression (MCRM) method is developed to estimate shaping coefficients for electricity forward prices. An important benefit of the new method is that model arbitrage can be ruled out at an…

Applications · Statistics 2018-06-27 Peter Leoni , Pieter Segaert , Sven Serneels , Tim Verdonck

Electricity price signals in modern power systems exhibit complex dependence structures that render forecasting inherently challenging. Our analysis of real-world pricing signals from the California Independent System Operator (CAISO)…

Applications · Statistics 2026-05-28 Keyi Wang , Jiaxiang Ji , Mahan Mansouri , Ahmed Aziz Ezzat

We present a new model for the electricity spot price dynamics, which is able to capture seasonality, low-frequency dynamics and the extreme spikes in the market. Instead of the usual purely deterministic trend we introduce a non-stationary…

Applications · Statistics 2012-01-06 Fred Espen Benth , Claudia Klüppelberg , Gernot Müller , Linda Vos

Electricity price forecasting has become a critical tool for decision-making in energy markets, particularly as the increasing penetration of renewable energy introduces greater volatility and uncertainty. Historically, research in this…

Statistical Finance · Quantitative Finance 2025-11-11 Ciaran O'Connor , Mohamed Bahloul , Steven Prestwich , Andrea Visentin

Purpose: Trading on electricity markets occurs such that the price settlement takes place before delivery, often day-ahead. In practice, these prices are highly volatile as they largely depend upon a range of variables such as electricity…

Applications · Statistics 2020-05-19 Christof Naumzik , Stefan Feuerriegel

Power grids are moving towards 100% renewable energy source bulk power grids, and the overall dynamics of power system operations and electricity markets are changing. The electricity markets are not only dispatching resources economically…

Machine Learning · Computer Science 2023-09-13 Milan Jain , Xueqing Sun , Sohom Datta , Abhishek Somani

We employ a recently proposed change-point detection algorithm, the Narrowest-Over-Threshold (NOT) method, to select subperiods of past observations that are similar to the currently recorded values. Then, contrarily to the traditional time…

Statistical Finance · Quantitative Finance 2022-04-05 Julia Nasiadka , Weronika Nitka , Rafał Weron

Cost optimal scenarios derived from models of a highly renewable electricity system depend on the specific input data, cost assumptions and system constraints. Here this influence is studied using a techno-economic optimisation model for a…

Physics and Society · Physics 2018-08-21 David P. Schlachtberger , Tom Brown , Mirko Schäfer , Stefan Schramm , Martin Greiner

Electricity market mechanisms designed to steer sustainable generation of electricity play an important role for the energy transition intended to mitigate climate change. One of the major problems is to complement volatile renewable energy…

Computers and Society · Computer Science 2017-05-01 Cem Kiyak , Andreas de Vries

We present a novel approach to probabilistic electricity price forecasting which utilizes distributional neural networks. The model structure is based on a deep neural network that contains a so-called probability layer. The network's…

Statistical Finance · Quantitative Finance 2023-09-29 Grzegorz Marcjasz , Michał Narajewski , Rafał Weron , Florian Ziel

Our paper aims to model supply and demand curves of electricity day-ahead auction in a parsimonious way. Our main task is to build an appropriate algorithm to present the information about electricity prices and demands with far less…

Pricing of Securities · Quantitative Finance 2020-02-04 Mariia Soloviova , Tiziano Vargiolu

We propose a new model for electricity pricing based on the price cap principle. The particularity of the model is that the asset price is an exponential functional of a jump L\'evy process. This model can capture both mean reversion and…

Pricing of Securities · Quantitative Finance 2019-06-27 Martin Kegnenlezom , Patrice Takam Soh , Antoine-Marie Bogso , Yves Emvudu Wono