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This paper proposes a novel single-level robust mathematical approach to model the RES-only Virtual Power Plant (RVPP) bidding problem in the simultaneous Day Ahead Market (DAM) and Secondary Reserve Market (SRM). The worst-case profit of…

Systems and Control · Electrical Eng. & Systems 2024-03-06 Hadi Nemati , Pedro Sánchez-Martín , Ana Baringo , Álvaro Ortega

Liberalized electricity markets often include resource adequacy mechanisms that require consumers to contract with generation resources well in advance of real-time operations. While administratively defined mechanisms have most commonly…

Trading and Market Microstructure · Quantitative Finance 2024-03-25 Han Shu , Jacob Mays

Optimal scheduling of hydrogen production in dynamic pricing power market can maximize the profit of hydrogen producer; however, it highly depends on the accurate forecast of hydrogen consumption. In this paper, we propose a deep leaning…

Machine Learning · Computer Science 2018-08-23 Yusheng Luo , Min Xian , Manish Mohanpurkar , Bishnu P. Bhattarai , Anudeep Medam , Rahul Kadavil , Rob Hovsapian

This paper studies the problem of maximizing the social welfare while stabilizing both the physical power network as well as the market dynamics. For the physical power grid a third-order structure-preserving model is considered involving…

Dynamical Systems · Mathematics 2017-04-25 Tjerk W. Stegink , Claudio De Persis , Arjan J. van der Schaft

This review presents the set of electricity price models proposed in the literature since the opening of power markets. We focus on price models applied to financial pricing and risk management. We classify these models according to their…

Mathematical Finance · Quantitative Finance 2021-07-30 Thomas Deschatre , Olivier Féron , Pierre Gruet

The capacity market, a marketplace to exchange available generation capacity for electricity production, provides a major revenue stream for generators and is adopted in several U.S. regions. A subject of ongoing debate, the capacity market…

Optimization and Control · Mathematics 2023-11-14 Cheng Guo , Christian Kroer , Yury Dvorkin , Daniel Bienstock

We study how delegating pricing to large language models (LLMs) can facilitate collusion in a duopoly when both sellers rely on the same pre-trained model. The LLM is characterized by (i) a propensity parameter capturing its internal bias…

Theoretical Economics · Economics 2026-03-24 Shengyu Cao , Ming Hu

The manufacturing industry is under growing pressure to enhance sustainability while preserving economic competitiveness. As a result, manufacturers have been trying to determine how to integrate onsite renewable energy and real-time…

Systems and Control · Electrical Eng. & Systems 2025-07-22 Hongliang Li , Herschel C. Pangborn , Ilya Kovalenko

Large deployment of distribute energy resources and the increasing awareness of end-users towards their energy procurement are challenging current practices of electricity markets. A change of paradigm, from a top-down hierarchical approach…

Optimization and Control · Mathematics 2020-09-18 Fabio Moret , Andrea Tosatto , Thomas Baroche , Pierre Pinson

This paper focuses on the problem of energy imbalance management in amicrogrid. The problem is investigated from the power market perspective. Unlike the traditional power grid, a microgrid can obtain extra energy froma renewable energy…

Systems and Control · Electrical Eng. & Systems 2026-01-16 Wei-Yu Chiu , Hongjian Sun , H. Vincent Poor

In this paper the robust utility maximization problem for a market model based on L\'evy processes is analyzed. The interplay between the form of the utility function and the penalization function required to have a well posed problem is…

Portfolio Management · Quantitative Finance 2012-06-05 Daniel Hernández-Hernández , Leonel Pérez-Hernández

Peer-to-peer (P2P) electricity markets enable prosumers to minimize their costs, which has been extensively studied in recent research. However, there are several challenges with P2P trading when physical network constraints are also…

Systems and Control · Electrical Eng. & Systems 2023-08-10 Hien Thanh Doan , Truong Hoang Bao Huy , Daehee Kim , Hongseok Kim

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

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

Convergence (virtual) bidding is an important part of two-settlement electric power markets as it can effectively reduce discrepancies between the day-ahead and real-time markets. Consequently, there is extensive research into the bidding…

Optimization and Control · Mathematics 2023-02-09 Letif Mones , Sean Lovett

An important issue in today's electricity markets is the management of flexibilities offered by new practices, such as smart home appliances or electric vehicles. By inducing changes in the behavior of residential electric utilities, demand…

Systems and Control · Electrical Eng. & Systems 2022-09-08 Olivier Bilenne , Paulin Jacquot , Nadia Oudjane , Mathias Staudigl , Cheng Wan , Barbara Franci

Recently there has been a lot of progress in the development of economic nonlinear model predictive control (NMPC) schemes for multistage optimal power flow (OPF) problems. However, the additional inclusion of discrete decision variables to…

Optimization and Control · Mathematics 2026-05-28 Jürgen Gutekunst , Armin Nurkanovic , Ekaterina Kostina , Hans Georg Bock , Robert Scholz , Amer Mesanovic

The participation of electric vehicle (EV) aggregators in real-time electricity markets offers promising revenue opportunities through price-responsive energy arbitrage. A central challenge in economic bidding lies in quantifying the…

Optimization and Control · Mathematics 2025-10-02 Zhen Zhu , Hongcai Zhang , Yonghua Song

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

Over the past years, distributed energy resources (DER) have been the object of many studies, which recognise and establish their emerging role in the future of power systems. However, the implementation of many scenarios and mechanism are…

Systems and Control · Computer Science 2018-09-20 Jaysson Guerrero , Archie Chapman , Gregor Verbic
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