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Electricity markets typically clear in two stages: a day-ahead market and a real-time market. In this paper, we propose market mechanisms for a two-stage multi-interval electricity market with energy storage, generators, and demand…

Optimization and Control · Mathematics 2024-03-08 Rajni Kant Bansal , Enrique Mallada , Patricia Hidalgo-Gonzalez

Virtual power plants (VPPs) are an emerging paradigm that aggregates distributed energy resources (DERs) for coordinated participation in power systems, including bidding as a single dispatchable entity in the wholesale market. In this…

Optimization and Control · Mathematics 2026-04-03 Weiqi Meng , Hongyi Li , Bai Cui

Our paper aims to model supply and demand curves of electricity day-ahead auction in a parsimonious way. Our main task is to build an appropriate algorithm to present the information about electricity prices and demands with far less…

Pricing of Securities · Quantitative Finance 2020-02-04 Mariia Soloviova , Tiziano Vargiolu

Extreme events jeopardize power network operations, causing beyond-design failures and massive supply interruptions. Existing market designs fail to internalize and systematically assess the risk of extreme and rare events. Efficiently…

Systems and Control · Electrical Eng. & Systems 2025-01-03 Tomas Tapia , Zhirui Liang , Charalambos Konstantinou , Yury Dvorkin

The integration of renewable energy into electricity markets poses significant challenges to price stability and increases the complexity of market operations. Accurate and reliable electricity price forecasting is crucial for effective…

Machine Learning · Computer Science 2025-02-10 Ciaran O'Connor , Mohamed Bahloul , Roberto Rossi , Steven Prestwich , Andrea Visentin

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

Grid-scale battery energy storage systems (BESSs) can provide flexibility to the power system and capture shortterm price volatility by shifting energy in time through controlled charging and discharging. The highly volatile European…

Computational Engineering, Finance, and Science · Computer Science 2025-06-10 Timothée Hornek , Youngsub Lee , Sergio Potenciano Menci , Ivan Pavić

We study the problem of forecasting and optimally trading day-ahead versus real-time (DART) price spreads in U.S. wholesale electricity markets. Building on the framework of Galarneau-Vincent et al., we extend spike prediction from a single…

Trading and Market Microstructure · Quantitative Finance 2026-05-20 Emma Hubert , Dimitrios Lolas , Ronnie Sircar

As consumer flexibility becomes expected, it is important that the market mechanisms which attain that flexibility are perceived as fair. We set out fairness issues in energy markets today, and propose a market design to address them.…

Systems and Control · Electrical Eng. & Systems 2025-07-17 Shaun Sweeney , Chris King , Mark O'Malley , Robert Shorten

Stock prices are highly volatile and sudden changes in trends are often very problematic for traditional forecasting models to handle. The standard Long Short Term Memory (LSTM) networks are regarded as the state-of-the-art models for such…

Machine Learning · Computer Science 2022-04-29 Debasrita Chakraborty , Susmita Ghosh , Ashish Ghosh

This paper undertakes a comprehensive investigation of electricity price forecasting methods, focused on the Irish Integrated Single Electricity Market, particularly on changes during recent periods of high volatility. The primary objective…

Machine Learning · Computer Science 2024-08-13 Ben Harkin , Xueqin Liu

In this work, we present a detailed model of a Renewable Energy Source (RES)-based Virtual Power Plant (VPP) that participates in Day-Ahead Market (DAM) and Intra-Day Market (IDM) with dispatchable and non-dispatchable RESs and flexible…

Systems and Control · Electrical Eng. & Systems 2021-12-07 Oluwaseun Oladimeji , Alvaro Ortega , Lukas Sigrist , Luis Rouco , Pedro Sanchez-Martin , Enrique Lobato

This study investigates the short-term forecasting of carbon emissions from electricity generation in the Italian power market. Using hourly data from 2021 to 2023, several statistical models and forecast combination methods are evaluated…

Applications · Statistics 2025-12-19 Pierdomenico Duttilo , Francesco Lisi

The European Power Exchange has introduced day-ahead auctions and continuous trading spot markets to facilitate the insertion of renewable electricity. These markets are designed to balance excess or lack of power in short time periods,…

Statistical Finance · Quantitative Finance 2021-12-08 Leonardo Rydin Gorjão , Dirk Witthaut , Pedro G. Lind , Wided Medjroubi

Electricity is traded on various markets with different time horizons and regulations. Short-term intraday trading becomes increasingly important due to the higher penetration of renewables. In Germany, the intraday electricity price…

Machine Learning · Computer Science 2023-03-13 Eike Cramer , Dirk Witthaut , Alexander Mitsos , Manuel Dahmen

Recent studies provide evidence that decomposing the electricity price into the long-term seasonal component (LTSC) and the remaining part, predicting both separately, and then combining their forecasts can bring significant accuracy gains…

Statistical Finance · Quantitative Finance 2025-03-05 Katarzyna Chęć , Bartosz Uniejewski , Rafał Weron

A study on power market price forecasting by deep learning is presented. As one of the most successful deep learning frameworks, the LSTM (Long short-term memory) neural network is utilized. The hourly prices data from the New England and…

Machine Learning · Computer Science 2018-10-24 Yongli Zhu , Songtao Lu , Renchang Dai , Guangyi Liu , Zhiwei Wang

Optimal day-ahead scheduling for a system-centric community energy management system (CEMS) is proposed to provide economic benefits and user comfort of energy management at the community level. Our proposed community includes different…

Systems and Control · Electrical Eng. & Systems 2022-02-22 Huy Truong Dinh , Dongwan Kim , Daehee Kim

Electricity price forecasting (EPF) plays a critical role in power system operation and market decision making. While existing review studies have provided valuable insights into forecasting horizons, market mechanisms, and evaluation…

Computational Finance · Quantitative Finance 2026-05-13 Runyao Yu , Derek W. Bunn , Julia Lin , Jochen Stiasny , Fabian Leimgruber , Tara Esterl , Yuchen Tao , Lianlian Qi , Yujie Chen , Wentao Wang , Jochen L. Cremer

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
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