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The increasing penetration level of energy generation from renewable sources is demanding for more accurate and reliable forecasting tools to support classic power grid operations (e.g., unit commitment, electricity market clearing or…

Machine Learning · Computer Science 2020-07-17 Michela Moschella , Mauro Tucci , Emanuele Crisostomi , Alessandro Betti

Probabilistic forecasting of power consumption in a middle-term horizon (months to a year) is a main challenge in the energy sector. It plays a key role in planning future generation plants and transmission grid. We propose a new model that…

Statistical Finance · Quantitative Finance 2020-10-20 Roberto Baviera , Giuseppe Messuti

We conduct an extensive empirical study on short-term electricity price forecasting (EPF) to address the long-standing question if the optimal model structure for EPF is univariate or multivariate. We provide evidence that despite a minor…

Applications · Statistics 2018-05-18 Florian Ziel , Rafal Weron

It is very vital for suppliers and distributors to predict the deregulated electricity prices for creating their bidding strategies in the competitive market area. Pre requirement of succeeding in this field, accurate and suitable…

Statistical Finance · Quantitative Finance 2016-10-27 T. O. Benli

Modern market management systems continue to evolve due to the intentions to improve system security and reliability. This evolvement has been leading to a transition of market auction models from a deterministic structure with…

Systems and Control · Electrical Eng. & Systems 2021-02-22 Mohammad Ghaljehei , Mojdeh Khorsand

We examine the problem of modeling and forecasting European Day-Ahead and Month-Ahead natural gas prices. For this, we propose two distinct probabilistic models that can be utilized in risk- and portfolio management. We use daily pricing…

Applications · Statistics 2023-02-13 Jonathan Berrisch , Florian Ziel

According to the fundamental theorems of welfare economics, any competitive equilibrium is Pareto efficient. Unfortunately, competitive equilibrium prices only exist under strong assumptions such as perfectly divisible goods and convex…

Computer Science and Game Theory · Computer Science 2023-05-24 Mete Şeref Ahunbay , Martin Bichler , Johannes Knörr

Electricity price is a key factor affecting the decision-making for all market participants. Accurate forecasting of electricity prices is very important and is also very challenging since electricity price is highly volatile due to various…

Machine Learning · Computer Science 2021-12-28 Vasudharini Sridharan , Mingjian Tuo , Xingpeng Li

In this paper analytic formulas for electricity derivatives are calculated. To this end, we assume that electricity spot prices follow a 3-regime Markov regime-switching model with independent spikes and drops and periodic transition…

Pricing of Securities · Quantitative Finance 2012-03-27 Joanna Janczura

Due to major shifts in European energy supply, a structural change can be observed in Austrian electricity spot price data starting from the second quarter of the year 2021 onward. In this work we study the performance of two different…

Mathematical Finance · Quantitative Finance 2024-04-24 Christian Laudagé , Florian Aichinger , Sascha Desmettre

Electricity price forecasting in Europe presents unique challenges due to increasing renewable generation variability, market integration, and the continent's physically interconnected power system. While recent advances in foundation…

Computational Engineering, Finance, and Science · Computer Science 2026-05-12 Runyao Yu , Chenhui Gu , Jochen Stiasny , Qingsong Wen , Wasim Sarwar Dilov , Lianlian Qi , Jochen L. Cremer

In electricity markets, futures contracts typically function as a swap since they deliver the underlying over a period of time. In this paper, we introduce a market price for the delivery periods of electricity swaps, thereby opening an…

Pricing of Securities · Quantitative Finance 2022-06-13 Annika Kemper , Maren D. Schmeck , Anna Kh. Balci

Day Ahead Electricity Markets (DAMs) in India are thin but growing. Consistent price forecasts are important for their utilization in portfolio optimization models. Univariate or multivariate models with standard exogenous variables such as…

Applications · Statistics 2020-11-04 Sayani Gupta , Puneet Chitkara

This paper undertakes a comprehensive investigation of electricity price forecasting methods, focused on the Irish Integrated Single Electricity Market, particularly on changes during recent periods of high volatility. The primary objective…

Machine Learning · Computer Science 2024-08-13 Ben Harkin , Xueqin Liu

Electrified heating systems with thermal storage, such as electric boilers and heat pumps, represent a major source of demand-side flexibility. Under current electricity market designs, balance responsible parties (BRPs) operating such…

Systems and Control · Electrical Eng. & Systems 2026-02-20 Alessandro Quattrociocchi , Manisha Talukdar , Pere Izquierdo Gómez , Tomislav Dragicevic

With the rapid development of electricity markets, price volatility has significantly increased, making accurate forecasting crucial for power system operations and market decisions. Traditional linear models cannot capture the complex…

Machine Learning · Computer Science 2025-12-02 Xuanyi Zhao , Jiawen Ding , Xueting Huang , Yibo Zhang

Power grids are moving towards 100% renewable energy source bulk power grids, and the overall dynamics of power system operations and electricity markets are changing. The electricity markets are not only dispatching resources economically…

Machine Learning · Computer Science 2023-09-13 Milan Jain , Xueqing Sun , Sohom Datta , Abhishek Somani

We present new formulations of the stochastic electricity market clearing problem based on the principles of stochastic programming. Previous analyses have established that the canonical stochastic programming model effectively captures the…

Systems and Control · Electrical Eng. & Systems 2023-05-11 Sakitha Ariyarathne , Harsha Gangammanavar

Electricity price forecasting (EPF) plays a major role for electricity companies as a fundamental entry for trading decisions or energy management operations. As electricity can not be stored, electricity prices are highly volatile which…

Applications · Statistics 2024-05-27 Grégoire Dutot , Margaux Zaffran , Olivier Féron , Yannig Goude

An increase in energy production from renewable energy sources is viewed as a crucial achievement in most industrialized countries. The higher variability of power production via renewables leads to a rise in ancillary service costs over…

General Finance · Quantitative Finance 2017-09-25 Mario Mureddu , Hildegard Meyer-Ortmanns