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The price of electricity is far more volatile than that of other commodities normally noted for extreme volatility. The possibility of extreme price movements increases the risk of trading in electricity markets. However, underlying the…

Statistical Mechanics · Physics 2008-12-02 Rafal Weron

In this paper, we formulate a method for minimising the expectation value of the procurement cost of electricity in two popular spot markets: {\it day-ahead} and {\it intra-day}, under the assumption that expectation value of unit prices…

Economics · Quantitative Finance 2023-03-03 Naoya Yamaguchi , Maiya Hori , Yoshinari Ideguchi

The roll-out of stochastic renewable energy sources (RES) undermines the efficiency of power system and market operations. This paper proposes an approach to derive electricity prices that internalize RES stochasticity. We leverage a…

Systems and Control · Electrical Eng. & Systems 2020-03-31 Robert Mieth , Jip Kim , Yury Dvorkin

This paper examines the dependence between electricity prices, demand, and renewable energy sources by means of a multivariate copula model {while studying Germany, the widest studied market in Europe}. The inter-dependencies are…

Applications · Statistics 2022-01-05 Fabrizio Durante , Angelica Gianfreda , Francesco Ravazzolo , Luca Rossini

We analyze pricing mechanisms in electricity markets with AC power flow equations that define a nonconvex feasible set for the economic dispatch problem. Specifically, we consider two possible pricing schemes. The first among these prices…

Systems and Control · Electrical Eng. & Systems 2021-10-04 Mariola Ndrio , Anna Winnicki , Subhonmesh Bose

This paper proposes a novel method for demand forecasting in a pricing context. Here, modeling the causal relationship between price as an input variable to demand is crucial because retailers aim to set prices in a (profit) optimal manner…

Electric vehicle (EV) charging couples the operation of power and traffic networks. Specifically, the power network determines the charging price at various locations, while EVs on the traffic network optimize the charging power given the…

Systems and Control · Electrical Eng. & Systems 2023-09-06 Yufan Zhang , Sujit Dey , Yuanyuan Shi

Electricity supply is not simply a matter of quantity, but a time lasting service that matches with a wave-like load curve. It logically deserves a pricing based on the curve per se rather than simply integral of load. This paper introduces…

Systems and Control · Electrical Eng. & Systems 2020-04-02 Jinghuan Ma , Jie Gu , Zhijian Jin

The energetic flexibility of electric energy resources can be exploited when trading on wholesale energy and ancillary service markets. This paper considers the problem of a Balance Responsible Party to maximize its profit from trading on…

Systems and Control · Computer Science 2018-04-12 Fabian L. Müller , Stefan Woerner , John Lygeros

A central challenge in using price signals to coordinate the electricity consumption of a group of users is the operator's lack of knowledge of the users due to privacy concerns. In this paper, we develop a two-time-scale incentive…

Computer Science and Game Theory · Computer Science 2024-04-01 Jiayi Li , Matthew Motoki , Baosen Zhang

This paper investigates the impacts of competition in autonomous mobility-on-demand systems. By adopting a network-flow based formulation, we first determine the optimal strategies of profit-maximizing platform operators in monopoly and…

Optimization and Control · Mathematics 2021-07-27 Berkay Turan , Mahnoosh Alizadeh

Fair distribution of benefits in electric power systems is a pertinent energy policymaking problem; however, these efforts cannot be easily quantified in power system engineering studies. Therefore, we propose locational marginal burden…

Systems and Control · Electrical Eng. & Systems 2024-05-21 Samuel Talkington , Amanda West , Rabab Haider

Pricing multi-interval economic dispatch of electric power under operational uncertainty is considered in this two-part paper. Part I investigates dispatch-following incentives of profit-maximizing generators and shows that, under mild…

Systems and Control · Electrical Eng. & Systems 2021-08-13 Ye Guo , Cong Chen , Lang Tong

An optimal scheduling model for a microgrid participating in the electricity distribution market in interaction with a Distribution Market Operator (DMO) is proposed in this paper. The DMO administers the established electricity market in…

Systems and Control · Computer Science 2016-11-15 Sina Parhizi , Amin Khodaei , Mohammad Shahidehpour

The participation of electric vehicle (EV) aggregators in real-time electricity markets offers promising revenue opportunities through price-responsive energy arbitrage. A central challenge in economic bidding lies in quantifying the…

Optimization and Control · Mathematics 2025-10-02 Zhen Zhu , Hongcai Zhang , Yonghua Song

Motivated by real-world applications such as rental and cloud computing services, we investigate pricing for reusable resources. We consider a system where a single resource with a fixed number of identical copies serves customers with…

Optimization and Control · Mathematics 2025-06-24 Santiago R. Balseiro , Will Ma , Wenxin Zhang

We consider the problem of optimal trading for a power producer in the context of intraday electricity markets. The aim is to minimize the imbalance cost induced by the random residual demand in electricity, i.e. the consumption from the…

Trading and Market Microstructure · Quantitative Finance 2018-11-27 René Aïd , Pierre Gruet , Huyên Pham

The observed proportionality between nominal prices and average embodied energies cannot be interpreted with conventional economic theory. A model is presented that places energy transfers as the focal point of scarcity based on the idea…

Theoretical Economics · Economics 2018-12-03 Benjamin Leiva

Electricity markets currently fail to incorporate preferences of buyers, treating polluting and renewable energy sources as having equal social benefit under a system of uniform clearing prices. Meanwhile, renewable energy is prone to…

Systems and Control · Electrical Eng. & Systems 2024-09-30 Emilie Jong , Samuel Chevalier , Spyros Chatzivasileiadis , Shie Mannor

There is a growing interest in the integration of energy infrastructures to increase systems' flexibility and reduce operational costs. The most studied case is the synergy between electric and heating networks. Even though integrated heat…

General Economics · Economics 2020-11-23 Alvaro Gonzalez-Castellanos , David Pozo , Aldo Bischi