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Wholesale electricity markets are increasingly integrated via high voltage interconnectors, and inter-regional trade in electricity is growing. To model this, we consider a spatial equilibrium model of price formation, where constraints on…

Econometrics · Economics 2018-04-24 Michael Stanley Smith , Thomas S. Shively

Continuous intraday electricity markets play an increasingly important role in short-term trading and balancing, yet decision-making under rapidly evolving price dynamics remains challenging. This paper proposes a comprehensive framework…

Applications · Statistics 2026-05-14 Andrzej Puć , Joanna Janczura

Accurate short-term electricity price forecasting is crucial for strategically scheduling demand and generation bids in day-ahead markets. While data-driven techniques have shown considerable prowess in achieving high forecast accuracy in…

Machine Learning · Computer Science 2025-12-05 Maria Margarida Mascarenhas , Jilles De Blauwe , Mikael Amelin , Hussain Kazmi

Operational decisions relying on predictive distributions of electricity prices can result in significantly higher profits compared to those based solely on point forecasts. However, the majority of models developed in both academic and…

Statistical Finance · Quantitative Finance 2024-10-08 Arkadiusz Lipiecki , Bartosz Uniejewski , Rafał Weron

Accurate forecasts of electricity spot prices are essential to the daily operational and planning decisions made by power producers and distributors. Typically, point forecasts of these quantities suffice, particularly in the Nord Pool…

Statistical Finance · Quantitative Finance 2018-12-07 Gunnhildur H. Steinbakk , Alex Lenkoski , Ragnar Bang Huseby , Anders Løland , Tor Arne Øigård

In this paper we present a regression based model for day-ahead electricity spot prices. We estimate the considered linear regression model by the lasso estimation method. The lasso approach allows for many possible parameters in the model,…

Statistical Finance · Quantitative Finance 2016-10-26 Florian Ziel

In wholesale electricity markets, prices fluctuate widely from hour to hour and electricity generators price-hedge their output using longer-term contracts, such as monthly base futures. Consequently, the incentives they face to drive up…

General Economics · Economics 2025-06-05 Alice Lixuan Xu , Jorge Sánchez Canales , Chiara Fusar Bassini , Lynn H. Kaack , Lion Hirth

Short-term electricity markets are becoming more relevant due to less-predictable renewable energy sources, attracting considerable attention from the industry. The balancing market is the closest to real-time and the most volatile among…

Machine Learning · Computer Science 2024-02-14 Ciaran O'Connor , Joseph Collins , Steven Prestwich , Andrea Visentin

In this paper, a multivariate constrained robust M-regression (MCRM) method is developed to estimate shaping coefficients for electricity forward prices. An important benefit of the new method is that model arbitrage can be ruled out at an…

Applications · Statistics 2018-06-27 Peter Leoni , Pieter Segaert , Sven Serneels , Tim Verdonck

In this work we considered several hybrid modelling approaches for forecasting energy spot prices in EPEC market. Hybridization is performed through combining a Naive model, Fourier analysis, ARMA and GARCH models, a mean-reversion and…

Statistical Finance · Quantitative Finance 2020-10-19 Tahir Miriyev , Alessandro Contu , Kevin Schafers , Ion Gabriel Ion

Renewable electricity generation has grown significantly across many European power systems, leading to a greener energy mix, but also additional complexity in balancing electricity supply and demand. Unexpected differences between…

Systems and Control · Electrical Eng. & Systems 2026-05-19 Arnaud Verstraeten , Maria Margarida Mascarenhas , Hussain Kazmi

Power systems operate under uncertainty originating from multiple factors that are impossible to account for deterministically. Distributional forecasting is used to control and mitigate risks associated with this uncertainty. Recent…

Machine Learning · Computer Science 2024-10-07 Slawek Smyl , Boris N. Oreshkin , Paweł Pełka , Grzegorz Dudek

Security of supply is a common and important concern when integrating renewables in net-zero power systems. Extreme weather affects both demand and supply leading to power system stress; in Europe this stress spreads continentally beyond…

Systems and Control · Electrical Eng. & Systems 2025-08-08 Aleksander Grochowicz , Hannah C. Bloomfield , Marta Victoria

The study of Day-Ahead prices in the electricity market is one of the most popular problems in time series forecasting. Previous research has focused on employing increasingly complex learning algorithms to capture the sophisticated…

Applications · Statistics 2024-04-29 Carlos Sebastián , Carlos E. González-Guillén , Jesús Juan

The field of electricity price forecasting has seen significant advances in the last years, including the development of new, more accurate forecast models. These models leverage statistical relationships in previously observed data to…

Machine Learning · Computer Science 2022-09-28 Maria Margarida Mascarenhas , Hussain Kazmi

In this paper, we study the price responsiveness of electricity consumption from empirical commercial and industrial load data obtained from Texas. Employing a dynamical system perspective, we show that price responsive demand can be…

Applications · Statistics 2016-12-16 Jaeyong An , P. R. Kumar , Le Xie

Intra-day price spreads are of interest to electricity traders, storage and electric vehicle operators. This paper formulates dynamic density functions, based upon skewed-t and similar representations, to model and forecast the German…

Applications · Statistics 2020-02-26 Ekaterina Abramova , Derek Bunn

The smart grid vision entails advanced information technology and data analytics to enhance the efficiency, sustainability, and economics of the power grid infrastructure. Aligned to this end, modern statistical learning tools are leveraged…

Machine Learning · Statistics 2015-06-17 Vassilis Kekatos , Yu Zhang , Georgios B. Giannakis

Accurate electricity price forecasting (EPF) is increasingly difficult in markets characterised by extreme volatility, frequent price spikes, and rapid structural shifts. Deep learning (DL) has been increasingly adopted in EPF due to its…

Machine Learning · Computer Science 2026-02-16 Mohammed Osman Gani , Zhipeng He , Chun Ouyang , Sara Khalifa

We conduct the first rigorous study of electricity price volatility for the full panel of electricity prices across three European generation zones. By interpreting the observed day-ahead prices as local averages of a latent price process…

General Finance · Quantitative Finance 2026-05-14 Thomas K. Kloster , Fred Espen Benth
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