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In Part II of this two-part paper, we analyze the marginal prices derived in Part I of this two-part paper within a robust optimization framework. The load and generation are priced at Locational Marginal Price (LMP) while the uncertainty…

Optimization and Control · Mathematics 2015-07-07 Hongxing Ye , Yinyin Ge , Mohammad Shahidehpour , Zuyi Li

This paper addresses the challenges of high-impact low-probability (HILP) events by proposing a novel capacity reserve event market for mobile generation assets, aimed at supporting the transmission network during such incidents. Despite…

Systems and Control · Electrical Eng. & Systems 2024-02-01 Umar T. Salman , Zongjie Wang , Timothy M. Hansen

As the proportion of total power supplied by renewable sources increases, it gets more costly to use reserve generation to compensate for the variability of renewables like solar and wind. Hence attention has been drawn to exploiting…

Systems and Control · Computer Science 2014-08-26 Ashutosh Nayyar , Matias Negrete-Pincetic , Kameshwar Poolla , Pravin Varaiya

High penetration of renewable generation in the electricity grid presents power system operators with challenges including voltage instability mainly due to fluctuating power generation. To cope with intermittent generation, community…

Optimization and Control · Mathematics 2024-05-28 Khalil Gholami , Asef Nazari , Dhananjay Thiruvady , Valeh Moghaddam , Sutharshan Rajasegarar , Wei-Yu Chiu

We propose a framework where generation and transmission capacities are planned concurrently in market environments with a focus on the prosumers. This paper is a continuation of Part I and presents numerical results from three archetypal…

Optimization and Control · Mathematics 2021-05-24 Ni Wang , Remco Verzijlbergh , Petra Heijnen , Paulien Herder

The manufacturing industry is under growing pressure to enhance sustainability while preserving economic competitiveness. As a result, manufacturers have been trying to determine how to integrate onsite renewable energy and real-time…

Systems and Control · Electrical Eng. & Systems 2025-07-22 Hongliang Li , Herschel C. Pangborn , Ilya Kovalenko

We consider a two-stage market mechanism for trading electricity including renewable generation as an alternative to the widely used multi-settlement market structure. The two-stage market structure allows for recourse decisions by the…

Computer Science and Game Theory · Computer Science 2021-06-16 Nathan Dahlin , Rahul Jain

This work studies synergies arising from combining industrial demand response and local renewable electricity supply. To this end, we optimize the design of a local electricity generation and storage system with an integrated demand…

Optimization and Control · Mathematics 2024-03-07 Sonja H. M. Germscheid , Benedikt Nilges , Niklas von der Assen , Alexander Mitsos , Manuel Dahmen

Investments into renewable energy are increasing rapidly around the world. Energy system models are able to provide insights into optimal investment capacities and thus are widely used to aid the long-term investment decision-making under…

Optimization and Control · Mathematics 2022-01-06 Ni Wang , Remco A. Verzijlbergh , Petra W. Heijnen , Paulien M. Herder

The objective of this work is to reduce the storage dimensions required to operate a coupled photovoltaic (PV) and Battery Energy Storage System (BESS) in an electricity market, while keeping the same level of performance. Performance is…

Systems and Control · Electrical Eng. & Systems 2019-10-16 Thomas Carriere , Christophe Vernay , Sebastien Pitaval , Franccois-Pascal Neirac , George Kariniotakis

This paper proposes a novel reserve-minimizing and allocation strategy for virtual power plants (VPPs) to deliver optimal frequency support. The proposed strategy enables VPPs, acting as aggregators for inverter-based resources (IBRs), to…

Systems and Control · Electrical Eng. & Systems 2025-04-11 Xiang Zhu , Guangchun Ruan , Hua Geng

The concept of Stock Options is used to address the scarcity of resources, not adequately addressed by the previous tools of our Prediction Mechanism. Using a Predictive Reservation Scheme, network and disk resources are being monitored…

Networking and Internet Architecture · Computer Science 2022-10-03 Elias Vathias , Stathes Hadjiefthymiades

Liberalized electricity markets often include resource adequacy mechanisms that require consumers to contract with generation resources well in advance of real-time operations. While administratively defined mechanisms have most commonly…

Trading and Market Microstructure · Quantitative Finance 2024-03-25 Han Shu , Jacob Mays

Shift of the power system generation from the fossil to the variable renewable sources prompted the system operators to search for new sources of flexibility, that is, new reserve providers. With the introduction of electric vehicles, smart…

Systems and Control · Electrical Eng. & Systems 2020-12-22 Ivan Pavić , Hrvoje Pandžić , Tomislav Capuder

The high temporal variability of wind power generation represents a major challenge for the realization of a sustainable energy supply. Large backup and storage facilities are necessary to secure the supply in periods of low renewable…

Physics and Society · Physics 2018-11-21 Juliane Weber , Jan Wohland , Mark Reyers , Julia Moemken , Charlotte Hoppe , Joaquim G. Pinto , Dirk Witthaut

This paper studies the duopoly competition between renewable energy suppliers with or without energy storage in a local energy market. The storage investment brings the benefits of stabilizing renewable energy suppliers' outputs, but it…

Systems and Control · Electrical Eng. & Systems 2019-10-15 Dongwei Zhao , Hao Wang , Jianwei Huang , Xiaojun Lin

The increased market penetration of renewable energy sources and the rapid development of electric battery storage technologies yield a potential for reducing electricity price volatility while maintaining stability of the power grid. This…

Optimization and Control · Mathematics 2017-06-13 Juri Hinz , Jeremy Yee

The rising share of volatile renewable generation increases the demand for flexibility in the electricity grid. Flexible capacity can be offered by industrial energy systems through participation on either the continuous intraday,…

Optimization and Control · Mathematics 2022-12-26 Niklas Nolzen , Alissa Ganter , Nils Baumgärtner , Ludger Leenders , André Bardow

As penetration of wind power generation increases, system operators must account for its stochastic nature in a reliable and cost-efficient manner. These conflicting objectives can be traded-off by accounting for the variability and…

Optimization and Control · Mathematics 2015-11-11 Yury Dvorkin , Miles Lubin , Scott Backhaus , Michael Chertkov

This paper proposes a market mechanism for multi-interval electricity markets with generator and storage participants. Drawing ideas from supply function bidding, we introduce a novel bid structure for storage participation that allows…

Optimization and Control · Mathematics 2021-10-18 Rajni Kant Bansal , Pengcheng You , Dennice F. Gayme , Enrique Mallada