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Related papers: Large Fluctuations in Locational Marginal Prices

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The paper proposes a framework for modeling and analysis of the dynamics of supply, demand, and clearing prices in power system with real-time retail pricing and information asymmetry. Real-time retail pricing is characterized by passing on…

Systems and Control · Computer Science 2011-06-08 Mardavij Roozbehani , Munther A Dahleh , Sanjoy K Mitter

The large variability of renewable power sources is a central challenge in the transition to a sustainable energy system. Electricity markets are central for the coordination of electric power generation. These markets rely evermore on…

Statistical Finance · Quantitative Finance 2021-12-07 Chengyuan Han , Hannes Hilger , Eva Mix , Philipp C. Böttcher , Mark Reyers , Christian Beck , Dirk Witthaut , Leonardo Rydin Gorjão

In this paper, statistical machine learning algorithms, as well as deep neural networks, are used to predict the values of the price gap between day-ahead and real-time electricity markets. Several exogenous features are collected and…

Systems and Control · Electrical Eng. & Systems 2020-12-24 Nika Nizharadze , Arash Farokhi Soofi , Saeed D. Manshadi

The short-term forecasting of real-time locational marginal price (LMP) and network congestion is considered from a system operator perspective. A new probabilistic forecasting technique is proposed based on a multiparametric programming…

Applications · Statistics 2016-06-28 Yuting Ji , Robert J. Thomas , Lang Tong

Accurate forecasts of electricity prices are crucial for the management of electric power systems and the development of smart applications. European electricity prices have risen substantially and became highly volatile after the Russian…

This paper introduces the class of volatility modulated L\'{e}vy-driven Volterra (VMLV) processes and their important subclass of L\'{e}vy semistationary (LSS) processes as a new framework for modelling energy spot prices. The main…

Pricing of Securities · Quantitative Finance 2013-07-25 Ole E. Barndorff-Nielsen , Fred Espen Benth , Almut E. D. Veraart

Electricity market mechanisms designed to steer sustainable generation of electricity play an important role for the energy transition intended to mitigate climate change. One of the major problems is to complement volatile renewable energy…

Computers and Society · Computer Science 2017-05-01 Cem Kiyak , Andreas de Vries

The price of electricity is far more volatile than that of other commodities normally noted for extreme volatility. The possibility of extreme price movements increases the risk of trading in electricity markets. However, underlying the…

Statistical Mechanics · Physics 2008-12-02 Rafal Weron

Distribution markets are among the prospect being considered for the future of power systems. They would facilitate integration of distributed energy resources (DERs) and microgrids via a market mechanism and enable them to monetize…

Systems and Control · Computer Science 2016-08-09 Sina Parhizi , Amin Khodaei

We establish the Level-1 and Level-3 Large Deviation Principles (LDPs) for invariant measures on shift spaces over finite alphabets under very general decoupling conditions for which the thermodynamic formalism does not apply. Such…

Mathematical Physics · Physics 2019-06-28 Noé Cuneo , Vojkan Jakšić , Claude-Alain Pillet , Armen Shirikyan

The problem of heat system pricing is considered. A direct extension of locational marginal prices (LMP) in electricity markets to heat systems may lead to revenue inadequate issues. The underlying reason for such a problem is that, unlike…

Systems and Control · Electrical Eng. & Systems 2022-08-18 Xinyi Yi , Ye Guo , Hongbin Sun

Forecasters using flexible neural networks (NN) in multi-horizon distributional regression setups often struggle to gain detailed insights into the underlying mechanisms that lead to the predicted feature-conditioned distribution…

Machine Learning · Computer Science 2024-12-23 Alessandro Brusaferri , Danial Ramin , Andrea Ballarino

We present a new model for the electricity spot price dynamics, which is able to capture seasonality, low-frequency dynamics and the extreme spikes in the market. Instead of the usual purely deterministic trend we introduce a non-stationary…

Applications · Statistics 2012-01-06 Fred Espen Benth , Claudia Klüppelberg , Gernot Müller , Linda Vos

We conduct the first rigorous study of electricity price volatility for the full panel of electricity prices across three European generation zones. By interpreting the observed day-ahead prices as local averages of a latent price process…

General Finance · Quantitative Finance 2026-05-14 Thomas K. Kloster , Fred Espen Benth

The marginal price of electricity traditionally depends on the dual variables associated with relevant optimization goals. Particularly, in the optimal power flow realm, prices represent the cost of supplying an additional unit of power at…

Optimization and Control · Mathematics 2016-06-29 Kyri Baker

It is becoming more and more clear that complex networks present remarkable large fluctuations. These fluctuations may manifest differently according to the given model. In this paper we re-consider hidden variable models which turn out to…

Disordered Systems and Neural Networks · Physics 2014-02-19 Massimo Ostilli

Nothing has done more to empower the free market, enterprise, and meritocracy than the spread of electricity and power to everyone. The power system has been the precursor to the greatest period of innovation in our history and has meant…

General Finance · Quantitative Finance 2021-03-22 Martin Higgins

We propose a class of stochastic models for a dynamics of limit order book with different type of liquidities. Within this class of models we study the one where a spread decreases uniformly, belonging to the class of processes known as a…

Trading and Market Microstructure · Quantitative Finance 2021-01-07 Helder Rojas , Artem Logachov , Anatoly Yambartsev

The increasing attention to environmental issues is forcing the implementation of novel energy models based on renewable sources, fundamentally changing the configuration of energy management and introducing new criticalities that are only…

Physics and Society · Physics 2015-09-09 Mario Mureddu , Guido Caldarelli , Alessandro Chessa , Antonio Scala , Alfonso Damiano

In the present work we derive a Central Limit Theorem for sequences of Hilbert-valued Piecewise Deterministic Markov process models and their global fluctuations around their deterministic limit identified by the Law of Large Numbers. We…

Probability · Mathematics 2013-04-23 Martin G Riedler , Michele Thieullen