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In this paper, we examine in an abstract framework, how a tradeoff between efficiency and robustness arises in different dynamic oligopolistic market architectures. We consider a market in which there is a monopolistic resource provider and…

Systems and Control · Computer Science 2013-10-02 Qingqing Huang , Mardavij Roozbehani , Munther A Dahleh

The growing reliance on renewable energy sources, particularly solar and wind, has introduced challenges due to their uncontrollable production. This complicates maintaining the electrical grid balance, prompting some transmission system…

Systems and Control · Electrical Eng. & Systems 2025-04-18 Fabio Pavirani , Jonas Van Gompel , Seyed Soroush Karimi Madahi , Bert Claessens , Chris Develder

Forecast reconciliation is considered an effective method to achieve coherence (within a forecast hierarchy) and to improve forecast quality. However, the value of reconciled forecasts in downstream decision-making tasks has been mostly…

Machine Learning · Statistics 2025-12-02 Honglin Wen , Pierre Pinson

The rapid uptake of renewable energy technologies in recent decades has increased the demand of energy researchers, policymakers and energy planners for reliable data on the spatial distribution of their costs and potentials. For onshore…

We consider the process of bidding by electricity suppliers in a day-ahead market context where each supplier bids a linear non-decreasing function of her generating capacity with the goal of maximizing her individual profit given other…

Optimization and Control · Mathematics 2018-11-16 Ruidi Chen , Ioannis Ch. Paschalidis , Michael C. Caramanis , Panagiotis Andrianesis

Accurate and efficient imbalance electricity price forecasting is critical for industrial energy trading systems, especially as battery assets and automated bidding pipelines increasingly participate in balancing markets. However, real-time…

Computational Finance · Quantitative Finance 2026-05-12 Runyao Yu , Julia Lin , Derek W. Bunn , Jochen Stiasny , Wentao Wang , Yujie Chen , Tara Esterl , Peter Palensky , Jochen L. Cremer

Nowadays, power system inertia is changing as a consequence of replacing conventional units by renewable energy sources, mainly wind and PV power plants. This fact affects significantly the grid frequency response under power imbalances. As…

Systems and Control · Electrical Eng. & Systems 2020-05-06 A. Fernández-Guillamón , A. Vigueras-Rodríguez , A. Molina-García

Maintaining system balance becomes increasingly challenging as market design and grid capacity enhancement lag behind the growing share of renewables, requiring greater effort from both the transmission system operator (TSO) and the Balance…

Systems and Control · Electrical Eng. & Systems 2025-11-19 Hang Thanh Nguyen , Bart Van Der Holst , Phuong Hong Nguyen , Koen Kok

The energy transition is expected to significantly increase the share of renewable energy sources whose production is intermittent in the electricity mix. Apart from key benefits, this development has the major drawback of generating a…

Trading and Market Microstructure · Quantitative Finance 2023-01-30 Thibaut Théate , Antonio Sutera , Damien Ernst

The grid integration of intermittent Renewable Energy Sources (RES) causes costs for grid operators due to forecast uncertainty and the resulting production schedule mismatches. These so-called profile service costs are marginal cost…

General Finance · Quantitative Finance 2014-07-29 Jonas Müller , Marcus Hildmann , Andreas Ulbig , Göran Andersson

To achieve ambitious greenhouse gas emission reduction targets in time, the planning of future energy systems needs to accommodate societal preferences, e.g. low levels of acceptance for transmission expansion or onshore wind turbines, and…

Physics and Society · Physics 2025-10-30 Fabian Neumann , Tom Brown

Intraday electricity markets play an increasingly important role in balancing the intermittent generation of renewable energy resources, which creates a need for accurate probabilistic price forecasts. However, research to date has focused…

Statistical Finance · Quantitative Finance 2025-04-15 Simon Hirsch , Florian Ziel

In this paper, a novel approach to define the optimal bidding of renewable-only virtual power plants (RVPPs) in the day-ahead, secondary reserve, and intra-day markets is proposed. To this aim, a robust optimization algorithm is developed…

Systems and Control · Electrical Eng. & Systems 2024-02-20 Hadi Nemati , Pedro Sánchez-Martín , Álvaro Ortega , Lukas Sigrist , Enrique Lobato , Luis Rouco

Motivated by the cost savings that can be obtained by sharing resources in a network context, we consider a stylized, yet representative model, for the coordination of maintenance and service logistics for a geographic network of assets.…

Optimization and Control · Mathematics 2019-08-19 C. Drent , S. Kapodistria , J. A. C. Resing

The integration of renewable generation poses operational and economic challenges for the electricity grid. For the core problem of power balance, the legacy paradigm of tailoring supply to follow random demand may be inappropriate under…

Systems and Control · Computer Science 2014-09-25 Ashutosh Nayyar , Matias Negrete-Pincetic , Kameshwar Poolla , Pravin Varaiya

One of the recognized principal issues brought along by the steadfast migration towards power electronic interfaced energy sources is the loss of rotational inertia. In conventional power systems, the inertia of the synchronous machines…

Optimization and Control · Mathematics 2021-04-22 Bala Kameshwar Poolla , Saverio Bolognani , Li Na , Florian Dörfler

The increasing integration of variable renewable energy sources such as wind and solar will require new methods of managing generation uncertainty. Existing practices of uncertainty management for these resources largely focuses around…

Systems and Control · Electrical Eng. & Systems 2024-07-02 Daniel Shen , Marija Ilic

Over the past years, the share of electricity production from wind power plants has increased to significant levels in several power systems across Europe and the United States. In order to cope with the fluctuating and partially…

Optimization and Control · Mathematics 2016-01-19 Line Roald , Sidhant Misra , Michael Chertkov , Scott Backhaus , Göran Andersson

In this comment we discuss the problem of reconciling the linear efficiency of price returns with the long-memory of supply and demand. We present new evidence that shows that efficiency is maintained by a liquidity imbalance that co-moves…

Physics and Society · Physics 2008-12-02 J. Doyne Farmer , Austin Gerig , Fabrizio Lillo , Szabolcs Mike

The participation of renewable energy sources in energy markets is challenging, mainly because of the uncertainty associated with the renewables. Aggregation of renewable energy suppliers is shown to be very effective in decreasing this…

Optimization and Control · Mathematics 2016-09-26 Farshad Harirchi , Tyrone Vincent , Dejun Yang
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