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In this paper, we propose a two-stage electricity market framework to explore the participation of distributed energy resources (DERs) in a day-ahead (DA) market and a real-time (RT) market. The objective is to determine the optimal bidding…

Optimization and Control · Mathematics 2022-08-30 Yi Guo , Xuejiao Han , Xinyang Zhou , Gabriela Hug

The European Union Emission Trading Scheme (EU ETS) is a cornerstone of the EU's strategy to fight climate change and an important device for plummeting greenhouse gas (GHG) emissions in an economically efficient manner. The power industry…

Theoretical Economics · Economics 2021-05-03 Arega Getaneh Abate , Rossana Riccardi , Carlos Ruiz

Future electricity distribution grids will host a considerable share of the renewable energy sources needed for enforcing the energy transition. Demand side management mechanisms play a key role in the integration of such renewable energy…

Systems and Control · Computer Science 2019-04-16 José Horta , Eitan Altman , Mathieu Caujolle , Daniel Kofman , David Menga

The increase in renewable energy on the consumer side gives place to new dynamics in the energy grids. Participants in a microgrid can produce energy and trade it with their peers (peer-to-peer) with the permission of the energy provider.…

Machine Learning · Computer Science 2022-10-26 Nicolas Avila , Shahad Hardan , Elnura Zhalieva , Moayad Aloqaily , Mohsen Guizani

Aggregators are playing an increasingly crucial role in the integration of renewable generation in power systems. However, the intermittent nature of renewable generation makes market interactions of aggregators difficult to monitor and…

Computer Science and Game Theory · Computer Science 2016-06-22 Navid Azizan Ruhi , Krishnamurthy Dvijotham , Niangjun Chen , Adam Wierman

This paper proposes a novel computationally efficient algorithm for optimal sizing of Battery Energy Storage Systems (BESS) considering renewable energy bidding strategies. Unlike existing two-stage methods, our algorithm enables the…

Systems and Control · Electrical Eng. & Systems 2026-02-24 Taiyo Mantani , Hikaru Hoshino , Tomonari Kanazawa , Eiko Furutani

This paper evaluates market equilibrium under different pricing mechanisms in a two-settlement 100%-renewables electricity market. Given general probability distributions of renewable energy, we establish game-theoretical models to analyze…

Systems and Control · Electrical Eng. & Systems 2023-05-23 Dongwei Zhao , Audun Botterud , Marija Ilic

Decentralized electricity markets are often dominated by a small set of generator companies who control the majority of the capacity. In this paper, we explore the effect of the total controlled electricity capacity by a single, or group,…

Computational Engineering, Finance, and Science · Computer Science 2020-11-10 Alexander J. M. Kell , Matthew Forshaw , A. Stephen McGough

We consider the problem of optimal trading for a power producer in the context of intraday electricity markets. The aim is to minimize the imbalance cost induced by the random residual demand in electricity, i.e. the consumption from the…

Trading and Market Microstructure · Quantitative Finance 2018-11-27 René Aïd , Pierre Gruet , Huyên Pham

In this paper, we consider a future electricity market consisting of aggregated energy prosumers, who are equipped with local wind power plants (WPPs) to support (part of) their energy demands and can also trade energy with day-ahead market…

Systems and Control · Electrical Eng. & Systems 2021-06-01 Jianzheng Wang , Guoqiang Hu

Electricity markets currently fail to incorporate preferences of buyers, treating polluting and renewable energy sources as having equal social benefit under a system of uniform clearing prices. Meanwhile, renewable energy is prone to…

Systems and Control · Electrical Eng. & Systems 2024-09-30 Emilie Jong , Samuel Chevalier , Spyros Chatzivasileiadis , Shie Mannor

Since the 1990s, widespread introduction of central (wholesale) electricity markets has been seen across multiple continents, driven by the search for efficient operation of the power grid through competition. The increase of renewables has…

Systems and Control · Electrical Eng. & Systems 2025-10-15 Pål Forr Austnes , Matthieu Jacobs , Lu Wang , Mario Paolone

Distributed energy resources (DERs), such as rooftop solar panels, are growing rapidly and are reshaping power systems. To promote DERs, feed-in-tariff (FIT) is usually adopted by utilities to pay DER owners certain fixed rates for…

Computer Science and Game Theory · Computer Science 2021-10-22 Zibo Zhao , Chen Feng , Andrew L. Lu

The implementation of electricity markets based on locational marginal pricing in a multi-settlement process has allowed wholesale competition, with pricing mechanisms that incentivize the optimal allocation of generation, transmission, and…

Systems and Control · Electrical Eng. & Systems 2020-12-29 Veronica R. Bosquezfoti , Andrew L. Liu

In two-stage electricity markets, renewable power producers enter the day-ahead market with a forecast of future power generation and then reconcile any forecast deviation in the real-time market at a penalty. The choice of the forecast…

Systems and Control · Electrical Eng. & Systems 2025-01-15 Vladimir Dvorkin

In order to deal with market power that sporadically results from contingencies (e.g., severe weather, plant outages) most electricity markets have institutions in charge of monitoring market performance and mitigating market power. The…

Optimization and Control · Mathematics 2017-03-07 Shi Pu , Alfredo Garcia

Electricity is typically traded in day-ahead auctions because many power system decisions, such as unit commitment, must be made in advance. However, when wind and solar generators sell power one day ahead, they face uncertainty about their…

General Economics · Economics 2026-04-16 Thomas Hübner

The impact of energy production significantly affects system sustainability, which has enabled a shift towards renewable energy sources. Thus, producer behavior is crucial in electricity markets to achieve sustainability goals. In this…

Systems and Control · Electrical Eng. & Systems 2024-07-03 Mohammad Reza Karimi Gharigh , Lamia Varawala , Mohammad Reza Hesamzadeh , György Dán

With the large number of prosumers deploying distributed energy resources (DERs), integrating these prosumers into a transactive energy market (TEM) is a trend for the future smart grid. A community-based double auction market is considered…

Systems and Control · Electrical Eng. & Systems 2025-02-25 Jun Jiang , Yuanliang Li , Luyang Hou , Mohsen Ghafouri , Peng Zhang , Jun Yan , Yuhong Liu

Uncertainties in renewable generation and demand dynamics challenge day-ahead scheduling. To enhance renewable penetration and maintain intra-day balance, we develop a multi-agent reinforcement learning framework for self-interested…

Multiagent Systems · Computer Science 2026-04-13 Junhao Ren , Honglin Gao , Lan Zhao , Qiyu Kang , Gaoxi Xiao , Yajuan Sun