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The increasing penetration of renewable energy necessitates improved power system flexibility, driving the deployment of independent energy storage operators (ESOs). Existing research extensively investigates capacity sizing for price-taker…

Theoretical Economics · Economics 2026-05-19 Lizhong Zhang , Junqi Liu , Jianxiao Wang , Lei Zhu

This paper presents a dynamic pricing and energy management framework for electric vehicle (EV) charging service providers. To set the charging prices, the service providers faces three uncertainties: the volatility of wholesale electricity…

Signal Processing · Electrical Eng. & Systems 2018-01-10 Chao Luo , Yih-Fang Huang , Vijay Gupta

This paper presents a novel safe reinforcement learning algorithm for strategic bidding of Virtual Power Plants (VPPs) in day-ahead electricity markets. The proposed algorithm utilizes the Deep Deterministic Policy Gradient (DDPG) method to…

Systems and Control · Electrical Eng. & Systems 2023-09-13 Ognjen Stanojev , Lesia Mitridati , Riccardo de Nardis di Prata , Gabriela Hug

This paper presents a capacity-constrained incentive-based demand response approach for residential smart grids. It aims to maintain electricity grid capacity limits and prevent congestion by financially incentivising end users to reduce or…

Machine Learning · Computer Science 2026-02-19 Shafagh Abband Pashaki , Sepehr Maleki , Amir Badiee

In this work, a novel Stackelberg game theoretic framework is proposed for trading energy bidirectionally between the demand-response (DR) aggregator and the prosumers. This formulation allows for flexible energy arbitrage and additional…

Machine Learning · Computer Science 2024-10-28 Styliani I. Kampezidou , Justin Romberg , Kyriakos G. Vamvoudakis , Dimitri N. Mavris

Dynamic portfolio optimization is the process of sequentially allocating wealth to a collection of assets in some consecutive trading periods, based on investors' return-risk profile. Automating this process with machine learning remains a…

Machine Learning · Computer Science 2019-01-28 Pengqian Yu , Joon Sern Lee , Ilya Kulyatin , Zekun Shi , Sakyasingha Dasgupta

This paper sets forth a framework for deep reinforcement learning as applied to market making (DRLMM) for cryptocurrencies. Two advanced policy gradient-based algorithms were selected as agents to interact with an environment that…

Trading and Market Microstructure · Quantitative Finance 2019-11-21 Jonathan Sadighian

This paper applies computational techniques of convex stochastic optimization to optimal operation and valuation of electricity storages in the face of uncertain electricity prices. Our valuations are based on the indifference pricing…

This study develops and evaluates a deep reinforcement learning framework for dynamic portfolio allocation across global equity markets. The Soft Actor-Critic algorithm is used to learn continuous portfolio weights within a Markov Decision…

Portfolio Management · Quantitative Finance 2026-05-19 Kamil Kashif , Robert Ślepaczuk

Arbitrage is one important revenue source for energy storage in electricity markets. However, a large amount of storage in the market will impact the energy price and reduce potential revenues. This can lead to strategic behaviors of…

General Finance · Quantitative Finance 2022-11-17 Dongwei Zhao , Mehdi Jafari , Audun Botterud , Apurba Sakti

The increasing interconnection of power systems through AC and DC links enables energy storage units to access multiple electricity markets yet most existing arbitrage models remain limited to singlemarket participation This gap restricts…

Systems and Control · Electrical Eng. & Systems 2026-04-09 Md Umar Hashmi , Harsha Nagarajan , Dirk Van Hertem1

Reinforcement learning is a machine learning approach concerned with solving dynamic optimization problems in an almost model-free way by maximizing a reward function in state and action spaces. This property makes it an exciting area of…

Portfolio Management · Quantitative Finance 2020-10-12 Miquel Noguer i Alonso , Sonam Srivastava

The increasing number of wireless devices operating in unlicensed spectrum motivates the development of intelligent adaptive approaches to spectrum access. We consider decentralized contention-based medium access for base stations (BSs)…

Information Theory · Computer Science 2021-10-15 Akash Doshi , Srinivas Yerramalli , Lorenzo Ferrari , Taesang Yoo , Jeffrey G. Andrews

Continuous integration of renewable energy sources into power networks is causing a paradigm shift in energy generation and distribution with regards to trading and control; the intermittent nature of renewable sources affects pricing of…

Systems and Control · Electrical Eng. & Systems 2022-01-19 Pablo R. Baldivieso Monasterios , Nandor Verba , Euan A Morris , Thomas Morstyn , George. C , . Konstantopoulos , Elena Gaura , Stephen McArthur

This study investigates the development of an optimal execution strategy through reinforcement learning, aiming to determine the most effective approach for traders to buy and sell inventory within a finite time horizon. Our proposed model…

Trading and Market Microstructure · Quantitative Finance 2025-11-04 Yadh Hafsi , Edoardo Vittori

Future electricity distribution grids will host a considerable share of the renewable energy sources needed for enforcing the energy transition. Demand side management mechanisms play a key role in the integration of such renewable energy…

Systems and Control · Computer Science 2019-04-16 José Horta , Eitan Altman , Mathieu Caujolle , Daniel Kofman , David Menga

The energy transition has increased the reliance on intermittent energy sources, destabilizing energy markets and causing unprecedented volatility, culminating in the global energy crisis of 2021. In addition to harming producers and…

Trading and Market Microstructure · Quantitative Finance 2023-08-07 Jonas Hanetho

Underground pumped hydro energy storage (UPHES) systems play a critical role in grid-scale energy storage for renewable integration, yet optimal day-ahead scheduling remains computationally prohibitive due to nonlinear turbine performance…

Systems and Control · Electrical Eng. & Systems 2025-12-25 Honghui Zheng , Pietro Favaro , Yury Dvorkin , Ján Drgoňa

Energy storage is expected to play an increasingly important role in mitigating variations that come along with the growing penetration of renewable energy. In this paper, we study the optimal bidding of an energy storage unit in a…

Optimization and Control · Mathematics 2021-09-29 Yue Chen , Wei Wei , Tongxin Li , Yunhe Hou , Feng Liu , João P. S. Catalão

A continuous rise in the penetration of renewable energy sources, along with the use of the single imbalance pricing, provides a new opportunity for balance responsible parties to reduce their cost through energy arbitrage in the imbalance…

Systems and Control · Electrical Eng. & Systems 2024-05-01 Seyed Soroush Karimi Madahi , Gargya Gokhale , Marie-Sophie Verwee , Bert Claessens , Chris Develder
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