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Forecasting electricity prices is a challenging task and an active area of research since the 1990s and the deregulation of the traditionally monopolistic and government-controlled power sectors. Although it aims at predicting both spot and…

Statistical Finance · Quantitative Finance 2025-07-23 Katarzyna Maciejowska , Bartosz Uniejewski , Rafał Weron

Efficiently integrating renewable resources into electricity markets is vital for addressing the challenges of matching real-time supply and demand while reducing the significant energy wastage resulting from curtailments. To address this…

Machine Learning · Computer Science 2024-06-21 Ciaran O'Connor , Joseph Collins , Steven Prestwich , Andrea Visentin

Linearized models of power systems are often desirable to formulate tractable control and optimization problems that still reflect real-world physics adequately under various operating conditions. In this paper, we propose an approach that…

Optimization and Control · Mathematics 2018-05-28 Marc Hohmann , Joseph Warrington , John Lygeros

Demand response (DR) programs play a crucial role in improving system reliability and mitigating price volatility by altering the core profile of electricity consumption. This paper proposes a game-theoretical model that captures the…

General Economics · Economics 2024-11-26 Arega Getaneh Abate , Rosana Riccardi , Carlos Ruiz

In this paper, we study the interactions among interconnected autonomous microgrids, and propose a joint energy trading and scheduling strategy. Each interconnected microgrid not only schedules its local power supply and demand, but also…

Computer Science and Game Theory · Computer Science 2016-11-17 Hao Wang , Jianwei Huang

This paper develops learning-augmented algorithms for energy trading in volatile electricity markets. The basic problem is to sell (or buy) $k$ units of energy for the highest revenue (lowest cost) over uncertain time-varying prices, which…

Machine Learning · Computer Science 2024-02-29 Russell Lee , Bo Sun , Mohammad Hajiesmaili , John C. S. Lui

We consider a mechanism design problem for energy procurement, when there is one buyer and one seller, and the buyer is the mechanism designer. The seller can generate energy from conventional (deterministic) and renewable (random) plants,…

Optimization and Control · Mathematics 2014-01-23 Hamidreza Tavafoghi , Demosthenis Teneketzis

We consider an optimal trading problem under a market impact model with endogenous market resistance generated by a sophisticated trader who (partially) detects metaorders and trades against them to exploit price overreactions induced by…

Trading and Market Microstructure · Quantitative Finance 2026-02-05 Nathan De Carvalho , Youssef Ouazzani Chahdi , Grégoire Szymanski

We consider the problem of optimal bidding for virtual trading in two-settlement electricity markets. A virtual trader aims to arbitrage on the differences between day-ahead and real-time market prices; both prices, however, are random and…

Computer Science and Game Theory · Computer Science 2018-08-02 Sevi Baltaoglu , Lang Tong , Qing Zhao

This paper studies the optimal investment problem with random endowment in an inventory-based price impact model with competitive market makers. Our goal is to analyze how price impact affects optimal policies, as well as both pricing rules…

Mathematical Finance · Quantitative Finance 2018-12-10 Michail Anthropelos , Scott Robertson , Konstantinos Spiliopoulos

Minimizing the peak power consumption and matching demand to supply, under fixed threshold polices, are two key requirements for the success of the future electricity market. In this work, we consider dynamic pricing methods to minimize the…

Optimization and Control · Mathematics 2016-10-26 Zaid Almahmoud , Jacob Crandall , Khaled Elbassioni , Trung Thanh Nguyen , Mardavij Roozbehani

In this paper, we consider the problem of preferentially utilizing intermittent renewable power, such as wind, optimally to support thermal inertial loads in a microgrid environment. Thermal inertial loads can be programmed to…

Systems and Control · Electrical Eng. & Systems 2024-12-06 Gaurav Sharma , P R Kumar

In this paper, we propose to model the energy consumption of smart grid households with energy storage systems as an intertemporal trading economy. Intertemporal trade refers to transaction of goods across time when an agent, at any time,…

Other Computer Science · Computer Science 2015-06-17 Jayaprakash Rajasekharan , Visa Koivunen

Continuous intraday electricity markets play an increasingly important role in short-term trading and balancing, yet decision-making under rapidly evolving price dynamics remains challenging. This paper proposes a comprehensive framework…

Applications · Statistics 2026-05-14 Andrzej Puć , Joanna Janczura

Volume imbalance in a limit order book is often considered as a reliable indicator for predicting future price moves. In this work, we seek to analyse the nuances of the relationship between prices and volume imbalance. To this end, we…

Trading and Market Microstructure · Quantitative Finance 2024-07-24 Sergio Pulido , Mathieu Rosenbaum , Emmanouil Sfendourakis

This paper applies computational techniques of convex stochastic optimization to optimal operation and valuation of electricity storages in the face of uncertain electricity prices. Our valuations are based on the indifference pricing…

The new technologies emerging in the energy sector pose new requirements for both the regulation and operation of the electricity grid. Revised tariff structures and the introduction of local markets are two approaches that could tackle the…

Systems and Control · Electrical Eng. & Systems 2021-03-19 Bence Suto , Daniel Divenyi

We consider the problem of determining an optimal strategy for electricity injection that faces an uncertain power demand stream. This demand stream is modeled via an Ornstein-Uhlenbeck process with an additional jump component, whereas the…

Optimization and Control · Mathematics 2018-10-15 Simone Göttlich , Ralf Korn , Kerstin Lux

We consider a market where a finite number of players trade an asset whose supply is a stochastic process. The price formation problem consists of finding a price process that ensures that when agents act optimally to minimize their trading…

Analysis of PDEs · Mathematics 2022-08-15 Diogo Gomes , Julian Gutierrez , Ricardo Ribeiro

In this paper, we consider a num\'eraire-based utility maximization problem under constant proportional transaction costs and random endowment. Assuming that the agent cannot short sell assets and is endowed with a strictly positive…

Portfolio Management · Quantitative Finance 2017-02-24 Lingqi Gu , Yiqing Lin , Junjian Yang