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To increase market transparency, independent system operators (ISOs) have been working on minimizing uplift payments based on convex hull pricing theorems. However, the large-scale complex systems for ISOs bring computational challenges to…

Systems and Control · Electrical Eng. & Systems 2020-06-17 Yanan Yu , Yongpei Guan , Yonghong Chen

Pricing storage operation in the real-time market under demand and generation stochasticities is considered. A scenario-based stochastic rolling-window dispatch model is formulated for the real-time market, consisting of conventional…

Systems and Control · Electrical Eng. & Systems 2022-10-20 Cong Chen , Lang Tong

In this paper, we propose a pricing mechanism for the uplink communication cooperation to save the energy of mobile terminals (MTs) in wireless cellular network. Under the uncertainties of the other MTs' channel and battery conditions, a…

Information Theory · Computer Science 2015-08-05 Yinghao Guo , Lingjie Duan , Rui Zhang

The implementation of electricity markets based on locational marginal pricing in a multi-settlement process has allowed wholesale competition, with pricing mechanisms that incentivize the optimal allocation of generation, transmission, and…

Systems and Control · Electrical Eng. & Systems 2020-12-29 Veronica R. Bosquezfoti , Andrew L. Liu

This paper proposes a convex non-linear cost saving model for optimal economic dispatch in a microgrid. The mod-el incorporates energy storage degradation cost and intermittent renewable generation. Cell degradation cost being a non-linear…

Signal Processing · Electrical Eng. & Systems 2018-04-17 Vikram Bhattacharjee , Irfan Khan

Due to the limited predictability of wind power and other stochastic generation, trading this energy in competitive electricity markets is challenging. This paper derives revenue-maximising and risk-constrained strategies for stochastic…

General Finance · Quantitative Finance 2018-05-31 Jethro Browell

Strategic bidding problems in electricity markets are widely studied in power systems, often by formulating complex bi-level optimization problems that are hard to solve. The state-of-the-art approach to solve such problems is to…

Optimization and Control · Mathematics 2016-06-21 Mahdi Ghamkhari , Ashkan Sadeghi-Mobarakeh , Hamed Mohsenian-Rad

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…

It is well-known that a market equilibrium with uniform prices often does not exist in non-convex day-ahead electricity auctions. We consider the case of the non-convex, uniform-price Pan-European day-ahead electricity market "PCR" (Price…

Optimization and Control · Mathematics 2015-02-02 Mehdi Madani , Mathieu Van Vyve

In this study, we develop a theoretical model of strategic equilibrium bidding and price-setting behaviour by heterogeneous and boundedly rational electricity producers and a grid operator in a single electricity market under uncertain…

Physics and Society · Physics 2017-04-27 Jobst Heitzig , Hildegard Meyer-Ortmanns , Sabine Auer

We propose and analyze a day-ahead reserve market model that handles bids from flexible loads. This pool market model takes into account the fact that a load modulation in one direction must usually be compensated later by a modulation of…

Computer Science and Game Theory · Computer Science 2014-05-28 Sébastien Mathieu , Quentin Louveaux , Damien Ernst , Bertrand Cornélusse

We consider a model-independent pricing problem in a fixed-income market and show that it leads to a weak optimal transport problem as introduced by Gozlan et al. We use this to characterize the extremal models for the pricing of caplets on…

Probability · Mathematics 2023-08-28 Beatrice Acciaio , Mathias Beiglboeck , Gudmund Pammer

We formulate the optimal placement, sizing and control of storage devices in a power network to minimize generation costs with the intent of load shifting. We assume deterministic demand, a linearized DC approximated power flow model and a…

Optimization and Control · Mathematics 2014-08-18 Christos Thrampoulidis , Subhonmesh Bose , Babak Hassibi

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

Despite strong connections through shared application areas, research efforts on power market optimization (e.g., unit commitment) and power network optimization (e.g., optimal power flow) remain largely independent. A notable illustration…

Optimization and Control · Mathematics 2020-09-02 Carleton Coffrin , Bernard Knueven , Jesse Holzer , Marc Vuffray

Traditional electric energy markets do not explicitly model generator contingencies. To improve the representation of resources and to enhance the modeling of uncertainty, existing markets are moving in the direction of including generator…

Systems and Control · Electrical Eng. & Systems 2019-10-08 N. G. Singhal , J. Kwon , K. W. Hedman

Policy makers are formulating offshore energy infrastructure plans, including wind turbines, electrolyzers, and HVDC transmission lines. An effective market design is crucial to guide cost-efficient investments and dispatch decisions. This…

General Economics · Economics 2024-05-24 Michiel Kenis , Vladimir Dvorkin , Tim Schittekatte , Kenneth Bruninx , Erik Delarue , Audun Botterud

Current reserve procurement approaches ignore the stochastic nature of reserve asset availability itself and thus limit the type and volume of reserve offers. This paper develops a reliability-aware probabilistic approach that allows…

Systems and Control · Electrical Eng. & Systems 2021-10-27 Lars Herre , Pierre Pinson , Spyros Chatzivasileiadis

Automated market makers with concentrated liquidity capabilities are programmable at the tick level. The maximization of earned fees, plus depreciated reserves, is a convex optimization problem whose vector solution gives the best provision…

Portfolio Management · Quantitative Finance 2024-05-30 Corinne Powers

We consider a freight platform that serves as an intermediary between shippers and carriers in a truckload transportation network. The platform's objective is to design a policy that determines prices for shippers and payments to carriers,…

Optimization and Control · Mathematics 2025-03-07 Ruoran Chen , Sungwoo Kim , He Wang , Xuan Wang