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Optimizing the total cost of power systems is a common tool for network operation and planning. Besides valuable information about how to run and possibly expand a power system, the optimization provides an optimal Locational Marginal Price…

Physics and Society · Physics 2022-03-18 Fabian Hofmann , Markus Schlott

In this paper we investigate predictability of electricity prices in the Canadian provinces of Alberta and Ontario, as well as in the US Mid-C market. Using scale-dependent detrended fluctuation analysis, spectral analysis, and the…

Statistical Finance · Quantitative Finance 2015-06-01 Olga Y. Uritskaya , Vadim M. Uritsky

This paper aims to provide a practical example on the assessment and propagation of input uncertainty for option pricing when using tree-based methods. Input uncertainty is propagated into output uncertainty, reflecting that option prices…

Computational Engineering, Finance, and Science · Computer Science 2007-05-23 Henryk Gzyl , German Molina , Enrique ter Horst

We present a comparative study of different probabilistic forecasting techniques on the task of predicting the electrical load of secondary substations and cabinets located in a low voltage distribution grid, as well as their aggregated…

Machine Learning · Computer Science 2020-04-17 Lorenzo Nespoli , Vasco Medici , Kristijan Lopatichki , Fabrizio Sossan

Prediction intervals offer an effective tool for quantifying the uncertainty of loads in distribution systems. The traditional central PIs cannot adapt well to skewed distributions, and their offline training fashion is vulnerable to…

Applications · Statistics 2023-11-30 Yufan Zhang , Honglin Wen , Qiuwei Wu , Qian Ai

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 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

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

Natural gas is undoubtedly an essential component of the global energy system. Accurate short-term forecasting of natural gas price is challenging due to pronounced volatility driven by seasonal demand patterns, geopolitical developments,…

Machine Learning · Computer Science 2026-04-29 Yiqian Liu , Jiayi Niu , Adam Kelleher , Subhabrata Das

We address the need for forecasting methodologies that handle large uncertainties in electricity prices for continuous intraday markets by incorporating parameter uncertainty and using a broad set of covariables. This study presents the…

Applications · Statistics 2025-09-11 Daniel Nickelsen , Gernot Müller

Fluid approximation is a widely used approach for solving two-stage stochastic optimization problems, with broad applications in service system design such as call centers and healthcare operations. However, replacing the underlying random…

Optimization and Control · Mathematics 2025-12-19 Can Er , Mo Liu

There are numerous industrial settings in which a decision maker must decide whether to enter into long-term contracts to guarantee price (and hence cash flow) stability or to participate in more volatile spot markets. In this paper, we…

Optimization and Control · Mathematics 2025-01-28 Dimitri J. Papageorgiou

Experience curves are widely used to predict the cost benefits of increasing the deployment of a technology. But how good are such forecasts? Can one predict their accuracy a priori? In this paper we answer these questions by developing a…

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

High performance grid computing is a key enabler of large scale collaborative computational science. With the promise of exascale computing, high performance grid systems are expected to incur electricity bills that grow super-linearly over…

Distributed, Parallel, and Cluster Computing · Computer Science 2018-01-01 Prakash Murali , Sathish Vadhiyar

Battery energy storage systems BESSs can provide fast frequency reserves and energy arbitrage in Nordic electricity markets but their limited energy capacity requires accurate revenue forecasts and coordinated bidding across multiple…

Optimization and Control · Mathematics 2025-06-04 Zeenat Hameed , Chresten Traeholt

Following the foundational work of the Black--Scholes model, extensive research has been developed to price the option by addressing its underlying assumptions and associated pricing biases. This study introduces a novel framework for…

Mathematical Finance · Quantitative Finance 2025-08-21 Tapan Kar , Suprio Bhar , Barun Sarkar , Sesha Meka

Integration of variable energy resources -- e.g., solar, wind, and hydro -- and end-use electrification increase modern energy systems' weather-dependence. Identifying critical infrastructure constraining the power grid's ability to meet…

Physics and Society · Physics 2026-03-27 Katerina Tang , M. Vivienne Liu , C. Lindsay Anderson , Vivek Srikrishnan

We present the winning strategy of an electricity demand forecasting competition. This competition was organized to design new forecasting methods for unstable periods such as the one starting in Spring 2020. We rely on state-space models…

Applications · Statistics 2021-10-04 Joseph de Vilmarest , Yannig Goude

We propose and investigate two model classes for forward power price dynamics, based on continuous branching processes with immigration, and on Hawkes processes with exponential kernel, respectively. The models proposed exhibit jumps…

Statistical Finance · Quantitative Finance 2019-10-30 Giorgia Callegaro , Andrea Mazzoran , Carlo Sgarra
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