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Local energy markets empower prosumers to form coalitions for energy trading. However, the optimal partitioning of the distribution grid into such coalitions remains unclear, especially in constrained grids with stochastic production and…

Systems and Control · Electrical Eng. & Systems 2026-03-25 Saurabh Vaishampayan , Maryam Kamgarpour

The European market clearing problem is characterized by a set of heterogeneous orders and rules that force the implementation of heuristic and iterative solving methods. In particular, curtailable block orders and the uniform purchase…

Pricing of Securities · Quantitative Finance 2018-06-15 Iacopo Savelli , Bertrand Cornélusse , Antonio Giannitrapani , Simone Paoletti , Antonio Vicino

Spot electricity markets are considered under a Game-Theoretic framework, where risk averse players submit orders to the market clearing mechanism to maximise their own utility. Consistent with the current practice in Europe, the market…

Computer Science and Game Theory · Computer Science 2022-08-31 Ioan Alexandru Puiu , Raphael Andreas Hauser

Optimized charging of electric vehicles (EVs) at public locations consists of two decisions: how much energy to deliver at what times, which is continuous, and where to plug in, which is binary. This makes optimizing EV charging a…

Optimization and Control · Mathematics 2026-04-17 Nanfei Jiang , Yi Zhou , Josh A. Taylor , Mahnoosh Alizadeh

In \cite{EK10} the use of VCG in matching markets is motivated by saying that in order to compute market clearing prices in a matching market, the auctioneer needs to know the true valuations of the bidders. Hence VCG and corresponding…

Computer Science and Game Theory · Computer Science 2016-04-15 Walter Kern , Bodo Manthey , Marc Uetz

The electricity industry has been one of the first to face technological changes motivated by sustainability concerns. Whilst efficiency aspects of market design have tended to focus upon market power concerns, the new policy challenges…

Theoretical Economics · Economics 2023-04-06 Lamia Varawala , Mohammad Reza Hesamzadeh , György Dán , Derek Bunn , Juan Rosellón

Decarbonizing electric grids is a crucial global endeavor in the pursuit of carbon neutrality. Taking carbon emissions from generation into account when pricing electricity usage is an essential way to achieve this goal. However, such…

Optimization and Control · Mathematics 2024-04-19 Yue Chen , Changhong Zhao

For the case of inflexible demand and considering network constraints, we introduce a Cost Minimisation (CM) based market clearing mechanism, and a model representing the standard Social Welfare Maximisation mechanism used in European Day…

Computer Science and Game Theory · Computer Science 2022-11-08 Ioan Alexandru Puiu , Raphael Andreas Hauser

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

The integration of distributed energy resources (DERs) into wholesale energy markets can greatly enhance grid flexibility, improve market efficiency, and contribute to a more sustainable energy future. As DERs -- such as solar PV panels and…

Systems and Control · Electrical Eng. & Systems 2025-07-08 Jun He , Andrew L. Liu

Pricing multi-interval economic dispatch of electric power under operational uncertainty is considered in this two-part paper. Part I investigates dispatch-following incentives for generators under the locational marginal pricing (LMP) and…

Systems and Control · Electrical Eng. & Systems 2020-12-29 Cong Chen , Ye Guo , Lang Tong

In a smart grid environment, we study coalition formation of prosumers that aim at entering the energy market. It is paramount for the grid operation that the energy producers are able to sustain the grid demand in terms of stability and…

Computer Science and Game Theory · Computer Science 2014-11-03 Nicolas Gensollen , Vincent Gauthier , Michel Marot , Monique Becker

In this paper, we discuss incentive design for hierarchical model predictive control (MPC) systems viewed as Stackelberg games. We consider a hierarchical MPC formulation where, given a lower-level convex MPC (LoMPC), the upper-level system…

Systems and Control · Electrical Eng. & Systems 2025-02-10 Akshay Thirugnanam , Koushil Sreenath

With the integration of renewable sources in electricity distribution networks, the need to develop intelligent mechanisms for balancing the energy market has arisen. In the absence of such mechanisms, the energy market may face imbalances…

Computer Science and Game Theory · Computer Science 2025-06-09 Viorica Chifu , Cristina Bianca Pop , Tudor Cioara , Ionut Anghel

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

The non-storability of electricity makes it unique among commodity assets, and it is an important driver of its price behaviour in secondary financial markets. The instantaneous and continuous matching of power supply with demand is a key…

Risk Management · Quantitative Finance 2019-04-04 Daniel Poh , Stephen Roberts , Martin Tegnér

This paper takes a fresh look at the economic theory that is motivation for pricing models, such as critical peak pricing (CPP), or surge pricing, and the demand response models advocated by policy makers and in the power systems…

Optimization and Control · Mathematics 2021-03-30 Hala Ballouz , Joel Mathias , Sean Meyn , Robert Moye , Joseph Warrington

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

The recent research report of U.S. Department of Energy prompts us to re-examine the pricing theories applied in electricity market design. The theory of spot pricing is the basis of electricity market design in many countries, but it has…

Econometrics · Economics 2017-10-24 Haoyong Chen , Lijia Han

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
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