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This paper investigates large fluctuations of Locational Marginal Prices (LMPs) in wholesale energy markets caused by volatile renewable generation profiles. Specifically, we study events of the form $\mathbb{P} \Big ( \mathbf{LMP} \notin…

Optimization and Control · Mathematics 2021-07-07 Tommaso Nesti , John Moriarty , Alessandro Zocca , Bert Zwart

The problem of heat system pricing is considered. A direct extension of locational marginal prices (LMP) in electricity markets to heat systems may lead to revenue inadequate issues. The underlying reason for such a problem is that, unlike…

Systems and Control · Electrical Eng. & Systems 2022-08-18 Xinyi Yi , Ye Guo , Hongbin Sun

The increasing penetration of renewable energy in recent years has led to more uncertainties in power systems. These uncertainties have to be accommodated by flexible re- sources (i.e. upward and downward generation reserves). In this…

Optimization and Control · Mathematics 2016-08-03 Hongxing Ye , Yinyin Ge , Mohammad Shahidehpour , Zuyi Li

Distributed energy resource aggregators (DERAs) must share the distribution network together with the distribution utility in order to participate in the wholesale electricity markets that are operated by independent system operators…

Systems and Control · Electrical Eng. & Systems 2024-01-09 Cong Chen , Subhonmesh Bose , Timothy D. Mount , Lang Tong

In this paper, we investigate the impact of the Distributed generation (DG) on Power Transmission Grid and pricing strategy for different geographical locations in different states, generally distributed generation (DG) on distribution…

Systems and Control · Electrical Eng. & Systems 2024-01-04 Mohsen Abedi

Energy communities (ECs) are emerging as a promising decentralized model for managing cooperative distributed energy resources (DERs). As these communities expand and their operations become increasingly integrated into the grid, ensuring…

Systems and Control · Electrical Eng. & Systems 2025-10-28 Hyeongon Park , Kyuhyeong Kwag , Daniel K. Molzahn , Rahul K. Gupta

The fast uptake of distributed energy resources (DERs) presents increasing challenges for managing hosting capacity in distribution networks. Existing solutions include direct load control, operating envelopes, and price-based control…

Systems and Control · Electrical Eng. & Systems 2026-02-16 Jiawei Zhang , Gregor Verbic , Frederik Geth , Mohsen Aldaadi , Rahmat Heidari , Julio Braslavsky

Pricing and settlement mechanisms are crucial for efficient re-source allocation, investment incentives, market competition, and regulatory oversight. In the United States, Regional Transmission Operators (RTOs) adopts a uniform pricing…

Systems and Control · Electrical Eng. & Systems 2024-10-30 Hamid Davoudi , Fengyu Wang , Yonghong Chen , Di Shi , Alinson Xavier , Feng Qiu

Optimizing the total cost of power systems is a common tool for network operation and planning. Besides valuable information about how to run and possibly expand a power system, the optimization provides an optimal Locational Marginal Price…

Physics and Society · Physics 2022-03-18 Fabian Hofmann , Markus Schlott

Large, spatially flexible electricity consumers such as data centers can reallocate demand across locations, influencing dispatch and prices in wholesale electricity markets. While flexible load is often assumed to improve system…

Systems and Control · Electrical Eng. & Systems 2026-04-14 Aron Brenner , Deepjyoti Deka , Line Roald , Saurabh Amin

The shift towards an energy Grid dominated by prosumers (consumers and producers of energy) will inevitably have repercussions on the distribution infrastructure. Today it is a hierarchical one designed to deliver energy from large scale…

Physics and Society · Physics 2015-03-19 Giuliano Andrea Pagani , Marco Aiello

A coordinated trading process is proposed as a design for an electricity market with significant uncertainty, perhaps from renewables. In this process, groups of agents propose to the system operator (SO) a contingent buy and sell trade…

Optimization and Control · Mathematics 2017-08-28 Junjie Qin , Ram Rajagopal , Pravin Varaiya

The main goal of a sequential two-stage electricity market -- e.g., day-ahead and real-time markets -- is to operate efficiently. However, the price difference across stages due to inadequate competition and unforeseen circumstances leads…

Optimization and Control · Mathematics 2023-09-19 Rajni Kant Bansal , Yue Chen , Pengcheng You , Enrique Mallada

The main goal of this paper is to design a market operator (MO) and a distribution network operator (DNO) for a network of microgrids in consideration of multiple objectives. This is a high-level design and only those microgrids with…

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

This paper introduces a model for coordinating prosumers with heterogeneous distributed energy resources (DERs), participating in the local energy market (LEM) that interacts with the market-clearing entity. The proposed LEM scheme utilizes…

Nothing has done more to empower the free market, enterprise, and meritocracy than the spread of electricity and power to everyone. The power system has been the precursor to the greatest period of innovation in our history and has meant…

General Finance · Quantitative Finance 2021-03-22 Martin Higgins

In this paper, a framework is proposed to coordinate the operation of the independent system operator (ISO) and distribution system operator (DSO) to leverage the wholesale market participation of distributed energy resources (DERs)…

Systems and Control · Electrical Eng. & Systems 2022-01-20 Mohammad Mousavi , Meng Wu

We design a coordination mechanism between a distribution system operator (DSO) and distributed energy resource aggregators (DERAs) participating directly in the wholesale electricity market. Aimed at ensuring system reliability while…

Systems and Control · Electrical Eng. & Systems 2022-12-01 Cong Chen , Subhonmesh Bose , Lang Tong

In this paper, we study spectrum allocation mechanisms in hierarchical multi-layer markets which are expected to proliferate in the near future based on the current spectrum policy reform proposals. We consider a setting where a state…

Networking and Internet Architecture · Computer Science 2015-03-19 George Iosifidis , Anil Kumar Chorppath , Tansu Alpcan , Iordanis Koutsopoulos

We propose a real-time nodal pricing mechanism for cost minimization and voltage control in a distribution network with autonomous distributed energy resources and analyze the resulting market using stochastic game theory. Unlike existing…

Systems and Control · Electrical Eng. & Systems 2025-09-04 Eli Brock , Jingqi Li , Javad Lavaei , Somayeh Sojoudi
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