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The increasing integration of variable renewable energy sources such as wind and solar will require new methods of managing generation uncertainty. Existing practices of uncertainty management for these resources largely focuses around…

Systems and Control · Electrical Eng. & Systems 2024-07-02 Daniel Shen , Marija Ilic

In this paper we calculate the incremental system production cost associated with a measure of locational power injection uncertainty that can be interpreted as a locational price for tracking power fluctuations. This Locational Price of…

Systems and Control · Electrical Eng. & Systems 2020-01-07 Adria E. Brooks , Bernard C. Lesieutre

This paper considers the investment coordination problem for the long term transmission capacity expansion in a situation where there are multiple regional Transmission Planners (TPs), each acting in order to maximize the utility in only…

Systems and Control · Electrical Eng. & Systems 2023-10-11 Sambuddha Chakrabarti , Hosna Khajeh , Thomas R Nudell , Mohammad Reza Hesamzadeh , Ross Baldick

Nonconvexities in markets with discrete decisions and nonlinear constraints make efficient pricing challenging, often necessitating subsidies. A prime example is the unit commitment (UC) problem in electricity markets, where costly…

Optimization and Control · Mathematics 2026-02-18 Cheng Guo , Lauren Henderson , Ryan Cory-Wright , Boshi Yang

The exceptional benefits of wind power as an environmentally responsible renewable energy resource have led to an increasing penetration of wind energy in today's power systems. This trend has started to reshape the paradigms of power…

Optimization and Control · Mathematics 2014-10-01 Alvaro Lorca , Andy Sun

A non-centralized model predictive control (MPC) scheme for solving an economic dispatch problem of electrical networks is proposed in this paper. The scheme consists of two parts. The first part is an event-triggered repartitioning method…

Optimization and Control · Mathematics 2021-07-29 Wicak Ananduta , Carlos Ocampo-Martinez

We propose a novel machine learning approach for probabilistic forecasting of hourly day-ahead electricity prices. In contrast with the recent advances in data-rich probabilistic forecasting, which approximates distributions with few…

General Economics · Economics 2025-07-04 Jozef Barunik , Lubos Hanus

In power markets, understanding the cost dynamics of electricity generation is crucial. The complexity of price formation in the power system arises from its diverse attributes, such as various generator types, each characterized by its…

Theoretical Economics · Economics 2024-10-22 Shamim Homaei , Simon Roussanaly , Asgeir Tomasgard

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

We consider fixed load power market with non-convexities originating from start-up and no-load costs of generators. The convex hull (minimal uplift) pricing method results in power prices minimizing the total uplift payments to generators,…

Optimization and Control · Mathematics 2023-05-24 Vadim Borokhov

Electricity market operators worldwide use mixed-integer linear programming to solve the allocation problem in wholesale electricity markets. Prices are typically determined based on the duals of relaxed versions of this optimization…

Computer Science and Game Theory · Computer Science 2023-12-13 Mete Şeref Ahunbay , Martin Bichler , Teodora Dobos , Johannes Knörr

The increase of renewables in the grid and the volatility of the load create uncertainties in the day-ahead prices of electricity markets. Adaptive robust optimization (ARO) and stochastic optimization have been used to make commitment and…

Optimization and Control · Mathematics 2023-09-18 Dimitris Bertsimas , Angelos G. Koulouras

Dynamic pricing strategies are crucial for firms to maximize revenue by adjusting prices based on market conditions and customer characteristics. However, designing optimal pricing strategies becomes challenging when historical data are…

Machine Learning · Computer Science 2025-02-03 Fan Wang , Feiyu Jiang , Zifeng Zhao , Yi Yu

We consider a high-dimensional dynamic pricing problem under non-stationarity, where a firm sells products to $T$ sequentially arriving consumers that behave according to an unknown demand model with potential changes at unknown times. The…

Methodology · Statistics 2023-03-21 Zifeng Zhao , Feiyu Jiang , Yi Yu , Xi Chen

In many markets, like electricity or cloud computing markets, providers incur large costs for keeping sufficient capacity in reserve to accommodate demand fluctuations of a mostly fixed user base. These costs are significantly affected by…

Computer Science and Game Theory · Computer Science 2020-04-07 Ludwig Dierks , Sven Seuken

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

We develop a model of inter-temporal and intra-temporal price discrimination by monopoly airlines to study the ability of different discriminatory pricing mechanisms to increase efficiency and the associated distributional implications. To…

General Economics · Economics 2022-12-07 Gaurab Aryal , Charles Murry , Jonathan W. Williams

Mobility-on-Demand (MoD) systems have become a fixture in urban transportation networks, with the rapid growth of ride-hailing services such as Uber and Lyft. Ride-hailing is typically complemented with ridepooling options, which can reduce…

Systems and Control · Electrical Eng. & Systems 2021-12-30 Yang Liu , Qi Luo , Raga Gopalakrishnan , Samitha Samaranayake

Electrification is contributing to substantial growth in U.S. commercial and industrial loads, but the cost and Scope 2 carbon emission implications of this load growth are opaque for both power consumers and utilities. This work describes…

Systems and Control · Electrical Eng. & Systems 2026-01-21 Fletcher T. Chapin , Akshay K. Rao , Adhithyan Sakthivelu , Carson I. Tucker , Eres David , Casey S. Chen , Erin Musabandesu , Meagan S. Mauter

As the adoption of distributed energy resources grows, power systems are becoming increasingly complex and vulnerable to disruptions, such as natural disasters and cyber-physical threats. Peer-to-peer (P2P) energy markets offer a practical…

Systems and Control · Electrical Eng. & Systems 2024-12-03 Hamed Haggi , Wei Sun