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We show how to value both variable generation and energy storage to enable them to be integrated fairly and optimally into electricity capacity markets. We develop theory based on balancing expected energy unserved against costs of capacity…

Optimization and Control · Mathematics 2021-08-10 Stan Zachary , Amy Wilson , Chris Dent

Renewable power sources have low marginal pro-duction costs, but may result in high balancing costs due to the inherent production uncertainty. Current day-ahead markets elicit only point production profiles and neglect the degree of…

Systems and Control · Electrical Eng. & Systems 2026-04-06 Shobhit Singhal , Lesia Mitridati , Licio Romao

The increasing integration of variable renewable energy sources such as wind and solar will require new methods of managing generation uncertainty. Existing practices of uncertainty management for these resources largely focuses around…

Systems and Control · Electrical Eng. & Systems 2024-07-02 Daniel Shen , Marija Ilic

The growing share of Renewable Energy Sources (RES) in modern power systems increases both grid imbalances and frequency deviations, reinforcing the need for ancillary services such as Frequency Containment Reserve (FCR) and passive…

Systems and Control · Electrical Eng. & Systems 2026-05-26 Celle Hendrickx , Fabio Pavirani , Chris Develder

With the ongoing transition of electricity markets worldwide from hourly to intra-hourly bidding, market participants--especially Renewable Energy Sources (RES)--gain improved opportunities to adjust energy and reserve schedules and to…

Systems and Control · Electrical Eng. & Systems 2026-02-17 Hadi Nemati , Álvaro Ortega , Enrique Lobato , Luis Rouco

Over the last few decades, electricity markets around the world have adopted multi-settlement structures, allowing for balancing of supply and demand as more accurate forecast information becomes available. Given increasing uncertainty due…

Systems and Control · Electrical Eng. & Systems 2020-03-16 Nathan Dahlin , Rahul Jain

Securing an adequate supply of dispatchable resources is critical for keeping a power system reliable under high penetrations of variable generation. Traditional resource adequacy mechanisms are poorly suited to exploiting the growing…

Systems and Control · Electrical Eng. & Systems 2022-10-27 Farhad Billimoria , Filiberto Fele , Iacopo Savelli , Thomas Morstyn , Malcolm McCulloch

Control reserves are power generation or consumption entities that ensure balance of supply and demand of electricity in real-time. In many countries, they are operated through a market mechanism in which entities provide bids. The system…

Computer Science and Game Theory · Computer Science 2016-11-22 Pier Giuseppe Sessa , Neil Walton , Maryam Kamgarpour

Maintaining system balance becomes increasingly challenging as market design and grid capacity enhancement lag behind the growing share of renewables, requiring greater effort from both the transmission system operator (TSO) and the Balance…

Systems and Control · Electrical Eng. & Systems 2025-11-19 Hang Thanh Nguyen , Bart Van Der Holst , Phuong Hong Nguyen , Koen Kok

The integration of various energy resources with wind farms, results in improved market-aware management of wind generation variations. Consequently, the proposed method minimizes the negative impact associated with wind generation…

Systems and Control · Electrical Eng. & Systems 2023-11-27 Ramin Nourollahi , Rasoul Esmaeilzadeh

In the transition toward a sustainable power system, renewable-based Virtual Power Plants (RVPPs) have emerged as a promising solution to the challenges of integrating renewable energy sources into electricity markets. Their viability,…

Systems and Control · Electrical Eng. & Systems 2025-10-15 Hadi Nemati , Álvaro Ortega , Pedro Sánchez-Martín , Lukas Sigrist , Luis Rouco , Ignacio Egido

The increasing penetration of renewable energy in recent years has led to more uncertainties in power systems. In order to maintain system reliability and security, electricity market operators need to keep certain reserves in the…

Optimization and Control · Mathematics 2015-12-21 Hongxing Ye , Zuyi Li

In pursuit of carbon neutrality, many countries have adopted renewable portfolio standards to facilitate the integration of renewable energy. However, increasing penetration of renewable energy resources will also pose higher requirements…

Systems and Control · Electrical Eng. & Systems 2023-12-27 Wenli Wu , Ye Guo , Jiantao Shi

This paper focuses on the problem of energy imbalance management in amicrogrid. The problem is investigated from the power market perspective. Unlike the traditional power grid, a microgrid can obtain extra energy froma renewable energy…

Systems and Control · Electrical Eng. & Systems 2026-01-16 Wei-Yu Chiu , Hongjian Sun , H. Vincent Poor

Accommodating the uncertain and variable renewable energy sources (VRES) in electricity markets requires sophisticated and scalable tools to achieve market efficiency. To account for the uncertain imbalance costs in the real-time market…

Systems and Control · Electrical Eng. & Systems 2023-05-17 Dongwei Zhao , Vladimir Dvorkin , Stefanos Delikaraoglou , Alberto J. Lamadrid L. , Audun Botterud

As the role of variable renewables in electricity markets expands, new market products help system operators manage imbalances caused by uncertainty and variability. Whereas work in the last decade has focused on constructing demand curves…

Systems and Control · Electrical Eng. & Systems 2024-10-30 Elina Spyrou , Robin Hytowitz , Benjamin F. Hobbs , Ibrahim Krad , Liping Li , Mengmeng Cai , Michael Blonsky

From an economic point of view, a common criterion for assessing the merits of a reserve investment is its impacts on social welfare. The underlying assumption in using this criterion is that side payments may be used to distribute the…

Optimization and Control · Mathematics 2018-02-13 Yan Xiu , Subior Magounder , Stefanous Barose , Mohammd Hamdi

This paper compares the participation of Renewable-only Virtual Power Plants (RVPPs) and grid-scale Electrical Storage Systems (ESSs) in energy and reserve markets, evaluating their technical performance, market strategies, and economic…

Systems and Control · Electrical Eng. & Systems 2025-07-31 Hadi Nemati , Ignacio Egido , Pedro Sánchez-Martín , Álvaro Ortega

The rapid growth of variable renewable energy has increased the need for flexible and efficiently coordinated energy resources. In this context, hybrid resources that combine renewable generation and battery storage within a single…

Systems and Control · Electrical Eng. & Systems 2026-05-15 Hikaru Hoshino , Taiyo Mantani , Eiko Furutani

Renewable sources are taking center stage in electricity generation. However, matching supply with demand in a renewable-rich system is a difficult task due to the intermittent nature of renewable resources (wind, solar, etc.). As a result,…

Systems and Control · Electrical Eng. & Systems 2020-09-02 Haris Mansoor , Naveed Arshad
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