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

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Electricity price forecasting approaches generally fall into two categories: data-driven models, which learn from historical patterns, or fundamental models, which simulate market mechanisms. We propose a novel and highly efficient…

Applications · Statistics 2026-01-27 Paul Ghelasi , Florian Ziel

Electricity price forecasts play a crucial role in making key business decisions within the electricity markets. A focal point in this domain are probabilistic predictions, which delineate future price values in a more comprehensive manner…

Machine Learning · Computer Science 2025-01-22 Grzegorz Zakrzewski , Kacper Skonieczka , Mikołaj Małkiński , Jacek Mańdziuk

The high penetration of volatile renewable energy sources such as solar make methods for coping with the uncertainty associated with them of paramount importance. Probabilistic forecasts are an example of these methods, as they assist…

Machine Learning · Computer Science 2021-01-21 Vinayak Sharma , Jorge Angel Gonzalez Ordiano , Ralf Mikut , Umit Cali

This paper exploits the Duration-of-Use of the demand patterns as a key concept for dealing with demand side flexibility. Starting from the consideration that fine-grained energy metering is not used at the point of supply of the…

Systems and Control · Electrical Eng. & Systems 2020-04-21 Gianfranco Chicco , Andrea Mazza

Battery energy storage systems can be used for peak demand reduction in power systems, leading to significant economic benefits. Two practical challenges are 1) accurately determining the peak load days and hours and 2) quantifying and…

Machine Learning · Computer Science 2022-03-29 Tao Fu , Huifen Zhou , Xu Ma , Z. Jason Hou , Di Wu

We propose a new structural model that can compute the electricity spot and forward prices in two coupled markets with limited interconnection and multiple fuels. We choose a structural approach in order to represent some key…

Mathematical Finance · Quantitative Finance 2017-04-21 Clemence Alasseur , Olivier Feron

We investigate the problem of pricing and hedging derivatives of Electricity Futures contract when the underlying asset is not available. We propose to use a cross hedging strategy based on the Futures contract covering the larger delivery…

Pricing of Securities · Quantitative Finance 2014-02-03 Adrien Nguyen Huu , Nadia Oudjane

This paper presents a novel hybrid approach for constricting probabilistic forecasts that combines both the Quantile Regression Averaging (QRA) method and the factor-based averaging scheme. The performance of the approach is evaluated on…

Applications · Statistics 2024-11-20 Katarzyna Maciejowska , Tomasz Serafin , Bartosz Uniejewski

As electricity consumption grows, reducing peak demand--the maximum load on the grid--has become critical for preventing infrastructure strain and blackouts. Pricing mechanisms that incentivize consumers with flexible loads to shift…

Computer Science and Game Theory · Computer Science 2025-11-17 Vade Shah , Jason R. Marden

Short-term electricity price forecasting has become important for demand side management and power generation scheduling. Especially as the electricity market becomes more competitive, a more accurate price prediction than the day-ahead…

Signal Processing · Electrical Eng. & Systems 2018-02-26 Zhongyang Zhao , Caisheng Wang , Matthew Nokleby , Carol Miller

We propose a multi-factor polynomial framework to model and hedge long-term electricity contracts with delivery period. This framework has several advantages: the computation of forwards, risk premium and correlation between different…

Mathematical Finance · Quantitative Finance 2020-06-11 Xi Kleisinger-Yu , Vlatka Komaric , Martin Larsson , Markus Regez

Precise probabilistic forecasts are fundamental for energy risk management, and there is a wide range of both statistical and machine learning models for this purpose. Inherent to these probabilistic models is some form of uncertainty…

Machine Learning · Computer Science 2025-10-10 Andreas Lebedev , Abhinav Das , Sven Pappert , Stephan Schlüter

Accurate mid-term (weeks to one year) hourly electricity load forecasts are essential for strategic decision-making in power plant operation, ensuring supply security and grid stability, planning and building energy storage systems, and…

Applications · Statistics 2025-05-01 Monika Zimmermann , Florian Ziel

We employ a recently proposed change-point detection algorithm, the Narrowest-Over-Threshold (NOT) method, to select subperiods of past observations that are similar to the currently recorded values. Then, contrarily to the traditional time…

Statistical Finance · Quantitative Finance 2022-04-05 Julia Nasiadka , Weronika Nitka , Rafał Weron

We propose a new model for electricity pricing based on the price cap principle. The particularity of the model is that the asset price is an exponential functional of a jump L\'evy process. This model can capture both mean reversion and…

Pricing of Securities · Quantitative Finance 2019-06-27 Martin Kegnenlezom , Patrice Takam Soh , Antoine-Marie Bogso , Yves Emvudu Wono

In this paper we develop a novel method of wholesale electricity market modeling. Our optimization-based model decomposes wholesale supply and demand curves into buy and sell orders of individual market participants. In doing so, the model…

General Economics · Economics 2019-11-18 Sergei Kulakov , Florian Ziel

With the increasing penetration of electric vehicles (EVs) into the automotive market, the electricity peak demand would increase significantly due to home-EV-charging. This paper tackles this problem by defining an 'ideal' EV consumption…

Systems and Control · Electrical Eng. & Systems 2024-12-20 Qun Zhang , Gururaghav Raman , Jimmy Chih-Hsien Peng

This paper develops a coupled model for day-ahead electricity prices and average daily temperature which allows to model quanto weather and energy derivatives. These products have gained on popularity as they enable to hedge against both…

Pricing of Securities · Quantitative Finance 2024-04-22 Aurélien Alfonsi , Nerea Vadillo

Electricity price forecasting (EPF) is essential for energy markets stakeholders (e.g. grid operators, energy traders, policymakers) but remains challenging due to the inherent volatility and nonlinearity of price signals. Traditional…

Artificial Intelligence · Computer Science 2026-02-06 Kritchanat Ponyuenyong , Pengyu Tu , Jia Wei Tan , Wei Soon Cheong , Jamie Ng Suat Ling , Lianlian Jiang

Probabilistic intraday electricity price forecasting is becoming increasingly important for short-term power-system operation. With increasing renewable generation, demand-side flexibility, and storage assets, market participants need to…

Computational Finance · Quantitative Finance 2026-05-12 Runyao Yu , Yuchen Tao , Fabian Leimgruber , Tara Esterl , Jochen Stiasny , Derek W. Bunn , Qingsong Wen , Hongye Guo , Jochen L. Cremer