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We consider a sequential decision making process, such as renewable energy trading or electrical production scheduling, whose outcome depends on the future realization of a random factor, such as a meteorological variable. We assume that…

Trading and Market Microstructure · Quantitative Finance 2021-07-01 Peter Tankov , Laura Tinsi

Off-grid microgrids powered entirely by renewable energy sources face substantial challenges in achieving utility-grade reliability standards. Existing microgrid planning frameworks often prioritize cost minimization while treating…

Systems and Control · Electrical Eng. & Systems 2026-05-19 Mohammed Zeehan Saleheen , Markus Wagner , Hao Wang

A two-stage multi-period mixed-integer linear stochastic programming model is proposed to assist qualified operators in long-term generation and transmission expansion planning of electricity and gas systems to meet policy objectives. The…

Optimization and Control · Mathematics 2025-05-22 Giovanni Micheli , Maria Teresa Vespucci , Alessia Cortazzi , Cinzia Puglisi

We propose a framework for applying reinforcement learning to contextual two-stage stochastic optimization and apply this framework to the problem of energy market bidding of an off-shore wind farm. Reinforcement learning could potentially…

Systems and Control · Electrical Eng. & Systems 2023-12-19 David Cole , Himanshu Sharma , Wei Wang

Day-ahead scheduling of electricity generation or unit commitment is an important and challenging optimization problem in power systems. Variability in net load arising from the increasing penetration of renewable technologies have…

Optimization and Control · Mathematics 2018-08-06 Ali Irfan Mahmutogullari , Shabbir Ahmed , Ozlem Cavus , M. Selim Akturk

Resource allocation problems are a family of problems in which resources must be selected to satisfy given demands. This paper focuses on the two-stage stochastic generalization of resource allocation problems where future demands are…

Neural and Evolutionary Computing · Computer Science 2019-03-06 Pedro H. D. B. Hokama , Mário C. San Felice , Evandro C. Bracht , Fábio L. Usberti

This paper presents an analysis of the stability and quality of the distributed generation planning problem's investment solution. The entry of distributed generators power based on non-conventional energy sources has been extensively…

Systems and Control · Electrical Eng. & Systems 2021-03-31 Luis Lopez , Alvaro Gonzalez-Castellanos , David Pozo

Due to the new carbon neutral policies, many district heating operators start operating their combined heat and power (CHP) plants using different types of biomass instead of fossil fuel. The contracts with the biomass suppliers are…

Optimization and Control · Mathematics 2020-06-25 Ignacio Blanco , Daniela Guericke , Juan M. Morales , Henrik Madsen

To integrate strategic, tactical and operational decisions, the two-stage optimization has been widely used to guide dynamic decision making. In this paper, we study the two-stage stochastic programming for complex systems with unknown…

Optimization and Control · Mathematics 2019-10-15 Wei Xie , Yuan Yi , Hua Zheng

While wind and solar power contribute to sustainability, their intermittent nature poses challenges when integrated into the grid. To mitigate these issues, renewable energy can be combined with coal fired power and hydropower sources to…

Systems and Control · Electrical Eng. & Systems 2024-11-12 Manling Hu , Manqi Xu , Dunnan Liu

Real-time dispatch practices for operating the electric grid in an economic and reliable manner are evolving to accommodate higher levels of renewable energy generation. In particular, stochastic optimization is receiving increased…

Optimization and Control · Mathematics 2018-06-28 Ryan N. King , Matthew Reynolds , Devon Sigler , Wesley Jones

The growing prevalence of extreme weather events driven by climate change poses significant challenges to power system resilience. Infrastructure damage and prolonged power outages highlight the urgent need for effective grid-hardening…

Systems and Control · Electrical Eng. & Systems 2026-01-30 Sifat Chowdhury , Yihsu Chen , Yu Zhang

Driven by ambitious renewable portfolio standards, large-scale inclusion of variable energy resources (such as wind and solar) are expected to introduce unprecedented levels of uncertainty into power system operations. The current practice…

Systems and Control · Electrical Eng. & Systems 2021-08-02 Semih Atakan , Harsha Gangammanavar , Suvrajeet Sen

As net-load becomes less predictable there is a lot of pressure in changing decision models for power markets such that they account explicitly for future scenarios in making commitment decisions. This paper proposes to make commitment…

Optimization and Control · Mathematics 2016-12-21 Bita Analui , Anna Scaglione

Multi-stage decision-making under uncertainty, where decisions are taken under sequentially revealing uncertain problem parameters, is often essential to faithfully model managerial problems. Given the significant computational challenges…

Optimization and Control · Mathematics 2026-04-30 Simon Thomä , Maximilian Schiffer , Wolfram Wiesemann

Multistage stochastic programming provides a modeling framework for sequential decision-making problems that involve uncertainty. One typically overlooked aspect of this methodology is how uncertainty is incorporated into modeling.…

Optimization and Control · Mathematics 2021-09-24 Juyoung Wang , Mucahit Cevik , Merve Bodur

Two-stage robust unit commitment (RUC) models have been widely used for day-ahead energy and reserve scheduling under high renewable integration. The current state of the art relies on budget-constrained polyhedral uncertainty sets to…

Optimization and Control · Mathematics 2019-05-14 Alexandre Velloso , Alexandre Street , David Pozo , José M. Arroyo , Noemi G. Cobos

This paper investigates inland port infrastructure investment planning under uncertain commodity demand conditions. A two-stage stochastic optimization is developed to model the impact of demand uncertainty on infrastructure planning and…

Optimization and Control · Mathematics 2022-08-12 Sanjeev Bhurtyal , Sarah Hernandez , Sandra Eksioglu , Manzi Yves

We study two-stage stochastic optimization problems with random recourse, where the adaptive decisions are multiplied with the uncertain parameters in both the objective function and the constraints. To mitigate the computational…

Optimization and Control · Mathematics 2021-10-05 Xiangyi Fan , Grani A. Hanasusanto

We study a new two-time-scale stochastic gradient method for solving optimization problems, where the gradients are computed with the aid of an auxiliary variable under samples generated by time-varying MDPs controlled by the underlying…

Optimization and Control · Mathematics 2024-08-27 Sihan Zeng , Thinh T. Doan , Justin Romberg