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Related papers: Probabilistic Mid- and Long-Term Electricity Price…

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Retailers and major consumers of electricity generally purchase an important percentage of their estimated electricity needs years ahead in the forward market. This long-term electricity procurement task consists of determining when to buy…

Trading and Market Microstructure · Quantitative Finance 2022-06-06 Thibaut Théate , Sébastien Mathieu , Damien Ernst

Electricity markets are significantly more volatile than other comparable financial or commodity markets. Extreme price outcomes and their transmission between regions pose significant risks for market participants. We examine the…

Risk Management · Quantitative Finance 2022-02-22 Lin Han , Ivor Cribben , Stefan Trueck

We introduce the concept of temporal hierarchy forecasting (THieF) in predicting day-ahead electricity prices and show that reconciling forecasts for hourly products and 2- to 24-hour blocks can significantly (up to 13%) improve accuracy at…

Statistical Finance · Quantitative Finance 2026-03-06 Arkadiusz Lipiecki , Kaja Bilinska , Nicolaos Kourentzes , Rafal Weron

Relationships between the energy and the finance markets are increasingly important. Understanding these relationships is vital for policymakers and other stakeholders as the world faces challenges such as satisfying humanity's increasing…

General Economics · Economics 2025-07-17 Orr Shahar , Stefan Lessmann , Daniel Traian Pele

Studies looking at electricity market designs for very high shares of wind and solar often conclude that the energy-only market will break down. Without fuel costs, it is said that there is nothing to set prices. Symptoms of breakdown…

General Economics · Economics 2025-10-29 Tom Brown , Fabian Neumann , Iegor Riepin

The problem of probabilistic forecasting and online simulation of real-time electricity market with stochastic generation and demand is considered. By exploiting the parametric structure of the direct current optimal power flow, a new…

Applications · Statistics 2016-06-28 Weisi Deng , Yuting Ji , Lang Tong

Energy is a critical driver of modern economic systems. Accurate energy price forecasting plays an important role in supporting decision-making at various levels, from operational purchasing decisions at individual business organizations to…

Machine Learning · Computer Science 2024-11-07 Alexandru-Victor Andrei , Georg Velev , Filip-Mihai Toma , Daniel Traian Pele , Stefan Lessmann

We discuss stochastic modeling of volatility persistence and anti-correlations in electricity spot prices, and for this purpose we present two mean-reverting versions of the multifractal random walk (MRW). In the first model the…

Statistical Finance · Quantitative Finance 2015-06-04 Martin Rypdal , Ola Løvsletten

Electricity price forecasting (EPF) plays a critical role in power system operation and market decision making. While existing review studies have provided valuable insights into forecasting horizons, market mechanisms, and evaluation…

Computational Finance · Quantitative Finance 2026-05-13 Runyao Yu , Derek W. Bunn , Julia Lin , Jochen Stiasny , Fabian Leimgruber , Tara Esterl , Yuchen Tao , Lianlian Qi , Yujie Chen , Wentao Wang , Jochen L. Cremer

Short term electricity price forecast is essential in competitive power markets, yet electricity price series exhibit high volatility, irregularity, and non-stationarity. This phenomenon is pronounced in the South Australian region of the…

Machine Learning · Computer Science 2026-04-28 Wei Lu , Jay Wang , Dingli Duan , Ding Mao , Caiyi Song , John Huang

Electricity price forecasting is a critical component of modern energy-management systems, yet existing approaches heavily rely on numerical histories and ignore contemporaneous textual signals. We introduce NSW-EPNews, the first benchmark…

Machine Learning · Computer Science 2025-06-16 Zhaoge Bi , Linghan Huang , Haolin Jin , Qingwen Zeng , Huaming Chen

In recent years, there has been a significant focus on advancing the next generation of power systems. Despite these efforts, persistent challenges revolve around addressing the operational impact of uncertainty on predicted data,…

Optimization and Control · Mathematics 2024-03-15 Hien Thanh Doan , Minsoo Kim , Keunju Song , Hongseok Kim

This paper evaluates the impact of the power extent on price in the electricity market. The competitiveness extent of the electricity market during specific times in a day is considered to achieve this. Then, the effect of competitiveness…

Statistical Finance · Quantitative Finance 2019-07-30 Naser Rostamni , Tarik A. Rashid

Accurate price predictions are essential for market participants in order to optimize their operational schedules and bidding strategies, especially in the current context where electricity prices become more volatile and less predictable…

Computational Engineering, Finance, and Science · Computer Science 2025-09-26 Naga Venkata Sai Jitin Jami , Juraj Kardoš , Olaf Schenk , Harald Köstler

The electricity market is threatened by supply scarcity, which may lead to very sharp price spikes in the spot market. On the other hand, demand-side's activities could effectively mitigate the supply scarcity and absorb most of these…

Systems and Control · Computer Science 2016-08-23 Saeed Mohajeryami , Milad Doostan , Seyedmahdi Moghadasi , Peter Schwarz

As distributed energy resources (DERs) proliferate, future power system will need new market platforms enabling prosumers to trade various electricity and grid-support products. However, prosumers often exhibit complex, product…

Systems and Control · Electrical Eng. & Systems 2026-03-12 Shobhit Singhal , Lesia Mitridati

We introduce a new and highly tractable structural model for spot and derivative prices in electricity markets. Using a stochastic model of the bid stack, we translate the demand for power and the prices of generating fuels into electricity…

Pricing of Securities · Quantitative Finance 2015-05-27 Rene Carmona , Michael Coulon , Daniel Schwarz

This work presents a methodology for forward electricity contract price projection based on market equilibrium and social welfare optimization. In the methodology supply and demand for forward contracts are produced in such a way that each…

Optimization and Control · Mathematics 2019-11-27 Mateus A. Cavaliere , Sergio Granville , Gerson C. Oliveira , Mario V. F. Pereira

While deep learning gradually penetrates operational planning, its inherent prediction errors may significantly affect electricity prices. This letter examines how prediction errors propagate into electricity prices, revealing notable…

Machine Learning · Computer Science 2023-11-14 Vladimir Dvorkin , Ferdinando Fioretto

Probabilistic electricity price forecasting (PEPF) is subject of increasing interest, following the demand for proper quantification of prediction uncertainty, to support the operation in complex power markets with increasing share of…

Machine Learning · Computer Science 2024-06-11 Alessandro Brusaferri , Andrea Ballarino , Luigi Grossi , Fabrizio Laurini