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In this paper, we suggest that reserves must be computed dynamically to account for wind power volatility. We formalize the notion of dynamic reserves in support of sequential Day-Ahead-Market (DAM) and Real-Time-Market (RTM) clearing and…

Systems and Control · Electrical Eng. & Systems 2023-02-21 Marija Ilic , Dongwei Zhao

We formulate an equilibrium model of intraday trading in electricity markets. Agents face balancing constraints between their customers consumption plus intraday sales and their production plus intraday purchases. They have continuously…

Computational Finance · Quantitative Finance 2020-10-20 René Aid , Andrea Cosso , Huyên Pham

Keeping the electricity production in balance with the actual demand is becoming a difficult and expensive task in spite of an involvement of experienced human operators. This is due to the increasing complexity of the electric power grid…

Applications · Statistics 2019-02-05 Tárik S. Salem , Karan Kathuria , Heri Ramampiaro , Helge Langseth

The rapid increase in scale and sophistication of offshore wind (OSW) farms poses a critical challenge related to the cost-effective operation and management of wind energy assets. A defining characteristic of this challenge is the economic…

Systems and Control · Electrical Eng. & Systems 2023-08-31 Petros Papadopoulos , Farnaz Fallahi , Murat Yildirim , Ahmed Aziz Ezzat

During the last years, European intraday power markets have gained importance for balancing forecast errors due to the rising volumes of intermittent renewable generation. However, compared to day-ahead markets, the drivers for the intraday…

Statistical Finance · Quantitative Finance 2023-10-06 Simon Hirsch , Florian Ziel

The imbalance costs incurred by a stochastic power producer due to forecast production errors have a significant impact on its total profit and therefore, such an impact needs to be taken into account when evaluating investment decisions.…

Optimization and Control · Mathematics 2014-02-20 Salvador Pineda , Juan Miguel Morales

During the life of a wind farm, various types of costs arise. A large share of the operational cost for a wind farm is due to maintenance of the wind turbine equipment; these costs are especially pronounced for offshore wind farms and…

Optimization and Control · Mathematics 2021-05-17 Quanjiang Yu , Ann-Brith Strömberg

Currently, wind energy is one of the most important sources of renewable energy. Offshore locations for wind turbines are increasingly exploited because of their numerous advantages. However, offshore wind farms require high investment in…

Computer Science and Game Theory · Computer Science 2024-01-17 Alberto Pliego Marugán , Fausto Pedro García Márquez , Jesús María Pinar Pérez

We develop a mathematical model for intraday dispatch of co-located wind-battery energy assets. Focusing on the primary objective of firming grid-side actual production vis-a-vis the preset day-ahead hourly generation targets, we conduct a…

Optimization and Control · Mathematics 2025-10-14 Thiha Aung , Mike Ludkovski

This paper develops a feature-driven model for hybrid power plants, enabling them to exploit available contextual information such as historical forecasts of wind power, and make optimal wind power and hydrogen trading decisions in the…

Systems and Control · Electrical Eng. & Systems 2024-04-01 Emil Helgren , Jalal Kazempour , Lesia Mitridati

Recent studies concerning the point electricity price forecasting have shown evidence that the hourly German Intraday Continuous Market is weak-form efficient. Therefore, we take a novel, advanced approach to the problem. A probabilistic…

Statistical Finance · Quantitative Finance 2021-02-02 Michał Narajewski , Florian Ziel

Interconnecting price zones and remote renewable energy sources has emerged as a key solution to achieving climate goals. The objective of this work is to present a formulation that extends the base optimal power flow model with price zones…

Systems and Control · Electrical Eng. & Systems 2025-05-27 Bernardo Castro Valerio , Vinícius Albernaz Lacerda , Marc Cheah-Mañe , Pieter Gebraad , Oriol Gomis-Bellmunt

In this paper we study the pricing and hedging of structured products in energy markets, such as swing and virtual gas storage, using the exponential utility indifference pricing approach in a general incomplete multivariate market model…

Mathematical Finance · Quantitative Finance 2016-02-23 Giorgia Callegaro , Luciano Campi , Valeria Giusto , Tiziano Vargiolu

We study an optimal portfolio problem designed for an agent operating in intraday electricity markets. The investor is allowed to trade in a single risky asset modelling the continuously traded power and aims to maximize the expected…

Portfolio Management · Quantitative Finance 2018-07-06 Marco Piccirilli , Tiziano Vargiolu

The increase of renewables in the grid and the volatility of the load create uncertainties in the day-ahead prices of electricity markets. Adaptive robust optimization (ARO) and stochastic optimization have been used to make commitment and…

Optimization and Control · Mathematics 2023-09-18 Dimitris Bertsimas , Angelos G. Koulouras

In this study, an optimization problem is proposed in order to obtain the maximum economic benefit from wind farms with variable and intermittent energy generation in the day ahead and balancing electricity markets. This method, which is…

Econometrics · Economics 2018-06-15 Akın Taşcikaraoğlu , Ozan Erdinç

This paper describes multi-portfolio `internal' rebalancing processes used in the finance industry. Instead of trading with the market to `externally' rebalance, these internal processes detail how portfolio managers buy and sell between…

Portfolio Management · Quantitative Finance 2022-01-19 Kelli Francis-Staite

Considering that the existing setup of the European electricity markets promotes the spatial coordination of neighbouring power systems only on the day-ahead market stage, regional system operators have to rely mainly on their internal…

Optimization and Control · Mathematics 2015-03-03 Stefanos Delikaraoglou , Pierre Pinson , Robert Eriksson , Tilman Weckesser

Due to the limited predictability of wind power and other stochastic generation, trading this energy in competitive electricity markets is challenging. This paper derives revenue-maximising and risk-constrained strategies for stochastic…

General Finance · Quantitative Finance 2018-05-31 Jethro Browell

Virtual power plant (VPP) provides a flexible solution to distributed energy resources integration by aggregating renewable generation units, conventional power plants, energy storages, and flexible demands. This paper proposes a novel…

Systems and Control · Electrical Eng. & Systems 2021-02-04 Yunfan Zhang , Feng Liu , Zhaojian Wang , Yifan Su , Weisheng Wang , Shuanglei Feng