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Related papers: Large Fluctuations in Locational Marginal Prices

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This paper develops a new dynamic power profiling approach for modeling AI-centric datacenter loads and analyzing their impact on grid operations, particularly their potential to induce wide-area grid oscillations. We characterize the…

Systems and Control · Electrical Eng. & Systems 2026-04-21 Min-Seung Ko , Hao Zhu

We consider a market in which capacity-constrained generators compete in scalar-parameterized supply functions to serve an inelastic demand spread throughout a transmission constrained power network. The market clears according to a…

Computer Science and Game Theory · Computer Science 2019-01-29 Weixuan Lin , Eilyan Bitar

As variable renewable energy increases and more demand is electrified, we expect price formation in wholesale electricity markets to transition from being dominated by fossil fuel generators to being dominated by the opportunity costs of…

General Economics · Economics 2026-04-01 Julian Geis , Fabian Neumann , Michael Lindner , Philipp Härtel , Tom Brown

The large scale fluctuations of the ordered state in active matter systems are usually characterised by studying the "giant number fluctuations" of particles in any finite volume, as compared to the expectations from the central limit…

Soft Condensed Matter · Physics 2018-05-25 Supravat Dey , Dibyendu Das , R. Rajesh

In this paper we introduce the problem of dynamic pricing of power for smart-grid networks. This is studied within a network utility maximization (NUM) framework in a deterministic setting with a single provider, multiple users and a finite…

Systems and Control · Computer Science 2015-03-20 Qingsi Wang , Mingyan Liu , Rahul Jain

Short term electricity price forecast is essential in competitive power markets, yet electricity price series exhibit high volatility, irregularity, and non-stationarity. This phenomenon is pronounced in the South Australian region of the…

Machine Learning · Computer Science 2026-04-28 Wei Lu , Jay Wang , Dingli Duan , Ding Mao , Caiyi Song , John Huang

Flexible ramping products (FRPs) emerge as a promising instrument for addressing steep and uncertain ramping needs through market mechanisms. Initial implementations of FRPs in North American electricity markets, however, revealed several…

Systems and Control · Electrical Eng. & Systems 2024-09-04 Ogun Yurdakul , Erik Ela , Farhad Billimoria

We consider stochastic energy balance and entropy production (EP) in a generalized Langevin dynamics of macrospins, allowing for both amplitude and direction fluctuations, under external magnetic field. EP is calculated using Fokker-Planck…

Statistical Mechanics · Physics 2015-10-09 Swarnali Bandopadhyay , Debasish Chaudhuri , A. M. Jayannavar

This paper takes a fresh look at the economic theory that is motivation for pricing models, such as critical peak pricing (CPP), or surge pricing, and the demand response models advocated by policy makers and in the power systems…

Optimization and Control · Mathematics 2021-03-30 Hala Ballouz , Joel Mathias , Sean Meyn , Robert Moye , Joseph Warrington

The rapid adoption of AI has led the growth of computational demand, with large language models (LLMs) at the forefront since ChatGPT's debut in 2022. Meanwhile, large amounts of renewable energy have been deployed but, ultimately,…

Systems and Control · Electrical Eng. & Systems 2026-02-24 Yihsu Chen , Abel Souza , Fargol Nematkhah , Andrew L. Liu

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

When observations are independent, formulae and software are readily available to plan and design studies of appropriate size and power to detect important associations. When observations are correlated or clustered, results obtained from…

Applications · Statistics 2021-03-15 David M. Thompson

Some consumers, particularly households, are unwilling to face volatile electricity prices, and they can perceive as unfair price differentiation in the same local area. For these reasons, nodal prices in distribution networks are rarely…

General Economics · Economics 2021-06-09 Iacopo Savelli , Thomas Morstyn

Electricity markets are significantly more volatile than other comparable financial or commodity markets. Extreme price outcomes and their transmission between regions pose significant risks for market participants. We examine the…

Risk Management · Quantitative Finance 2022-02-22 Lin Han , Ivor Cribben , Stefan Trueck

The increasing penetration of renewable energy in recent years has led to more uncertainties in power systems. In order to maintain system reliability and security, electricity market operators need to keep certain reserves in the…

Optimization and Control · Mathematics 2015-12-21 Hongxing Ye , Zuyi Li

Electric power-systems are one of the most important critical infrastructures. In recent years, they have been exposed to extreme stress due to the increasing demand, the introduction of distributed renewable energy sources, and the…

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Adopting a zonal structure of electricity market requires specification of zones' borders. In this paper we use social welfare as the measure to assess quality of various zonal divisions. The social welfare is calculated by Market Coupling…

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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

This paper proposes an agent-based model that combines both spot and balancing electricity markets. From this model, we develop a multi-agent simulation to study the integration of the consumers' flexibility into the system. Our study…

Systems and Control · Computer Science 2018-02-13 Florian Kühnlenz , Pedro H. J. Nardelli , Santtu Karhinen , Rauli Svento

We address the question of how stock prices respond to changes in demand. We quantify the relations between price change $G$ over a time interval $\Delta t$ and two different measures of demand fluctuations: (a) $\Phi$, defined as the…

Statistical Mechanics · Physics 2009-11-07 Vasiliki Plerou , Parameswaran Gopikrishnan , Xavier Gabaix , H. Eugene Stanley