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A large fraction of the total electric load is comprised of end-use devices whose demand for energy is inherently deferrable in time. Of interest is the potential to leverage on such latent flexibility in demand to absorb variability in…

Optimization and Control · Mathematics 2016-08-23 Eilyan Bitar , Yunjian Xu

Relationships between the energy and the finance markets are increasingly important. Understanding these relationships is vital for policymakers and other stakeholders as the world faces challenges such as satisfying humanity's increasing…

General Economics · Economics 2025-07-17 Orr Shahar , Stefan Lessmann , Daniel Traian Pele

As distributed energy resources (DERs) proliferate, future power system will need new market platforms enabling prosumers to trade various electricity and grid-support products. However, prosumers often exhibit complex, product…

Systems and Control · Electrical Eng. & Systems 2026-03-12 Shobhit Singhal , Lesia Mitridati

The presence of integer variables in the European day-ahead electricity market renders the social welfare maximization problem non-convex and non-differentiable, making classical marginal pricing theoretically inconsistent. Existing pricing…

Optimization and Control · Mathematics 2026-03-27 Zhen Wang , Mohammad Reza Hesamzadeh , Shudian Zhao , Jan Kronqvist

Coordination of distributed energy resources is critical for electricity grid management. Although nodal pricing schemes can mitigate congestion and voltage deviations, the resulting prices are not necessarily equitable. In this work, we…

Optimization and Control · Mathematics 2023-12-15 Emmanuel Balogun , Sonia Martin , Anthony Degleris , Ram Rajagopal

The participation of renewable, energy storage, and resources with limited fuel inventory in electricity markets has created the need for optimal scheduling and pricing across multiple market intervals for resources with intertemporal…

Optimization and Control · Mathematics 2019-10-08 Jinye Zhao , Tongxin Zheng , Eugene Litvinov

We propose a linear cutting-plane pricing algorithm tailored for large-scale electricity markets, addressing nonconvexities arising from the Alternating Current Optimal Power Flow equations. We benchmark our algorithm against a Direct…

Optimization and Control · Mathematics 2025-04-15 Matías Romero , Felipe Verástegui , Matías Villagra

In a recent publication, using a simple two-period model, which is already capable to capture essential non-convex multiperiod bids, Richstein et al. have shown that in the case of optimal bidding, multi-part bidding always ensures a higher…

General Economics · Economics 2025-10-09 Dávid Csercsik , Mihály András Vághy

The Pay-as-Clear (PaC) mechanism currently used in the European electricity market can generate significant submarginal profits for renewable sources when the clearing price is determined by the marginal offers of gas-fired generation units…

Optimization and Control · Mathematics 2026-02-23 Andrea Altamura , Fabrizio Lacalandra , Antonio Frangioni

Transactive or market-based coordination strategies have recently been proposed for controlling the aggregate demand of a large number of electric loads. Such schemes offer operational benefits such as enforcing distribution feeder capacity…

Systems and Control · Computer Science 2017-02-17 Md Salman Nazir , Ian A. Hiskens

To accommodate the advent of microgrids (MG) managing distributed energy resources (DER) in distribution systems, an interactive two-stage joint retail electricity market mechanism is proposed to provide an effective platform for these…

Systems and Control · Electrical Eng. & Systems 2021-07-28 Chunyi Huang , Mingzhi Zhang , Chengmin Wang , Ning Xie , Jian Wang , Shi Peng

We examine a constrained Markov decision process under uncertain transition probabilities, with the uncertainty modeled as deviations from observed transition probabilities. We construct the uncertainty set associated with the deviations…

Optimization and Control · Mathematics 2025-04-15 V Varagapriya

We propose a framework where generation and transmission capacities are planned concurrently in market environments with a focus on the prosumers. This paper is a continuation of Part I and presents numerical results from three archetypal…

Optimization and Control · Mathematics 2021-05-24 Ni Wang , Remco Verzijlbergh , Petra Heijnen , Paulien Herder

Extreme weather is straining electricity systems, exposing the limitations of reactive responses, and prompting the need for proactive resilience planning. Most existing approaches to enhance electricity system resilience employ simplified…

Machine Learning · Computer Science 2025-10-03 Shuyi Chen , Shixiang Zhu , Ramteen Sioshansi

We introduce a new class of combinatorial markets in which agents have covering constraints over resources required and are interested in delay minimization. Our market model is applicable to several settings including scheduling, cloud…

Computer Science and Game Theory · Computer Science 2017-04-17 Nikhil Devanur , Jugal Garg , Ruta Mehta , Vijay V. Vazirani , Sadra Yazdanbod

Distribution locational marginal prices (DLMPs) facilitate the efficient operation of low-voltage electric power distribution systems. We propose an approach to internalize the stochasticity of renewable distributed energy resources (DERs)…

Systems and Control · Computer Science 2020-04-28 Robert Mieth , Yury Dvorkin

At present, electricity markets largely ignore the fact that renewable power producers impose significant externalities on non-renewable energy producers. This is because consumers are generally guaranteed electricity within certain load…

Optimization and Control · Mathematics 2016-11-28 Ashkan Zeinalzadeh , Indraneel Chakraborty , Vijay Gupta

In a commodity market, revenue adequate prices refer to compensations that ensure that a market participant has a non-negative profit. In this article, we study the problem of deriving revenue adequate prices for an electricity…

Theoretical Economics · Economics 2021-05-05 Xin Shi , Alberto J. Lamadrid L. , Luis F. Zuluaga

In the restructured electricity industry, electricity pooling markets are an oligopoly with strategic producers possessing private information (private production cost function). We focus on pooling markets where aggregate demand is…

Computer Science and Game Theory · Computer Science 2014-01-20 Mohammad Rasouli , Demosthenis Teneketzis

The recent widespread adoption of rooftop solar backed by battery storage is enabling energy customers to both produce and consume electricity (i.e., prosumers of electricity). To facilitate prosumer participation in the electric grid, new…

Systems and Control · Electrical Eng. & Systems 2025-06-25 Zeinab Salehi , Yijun Chen , Ian R. Petersen , Guodong Shi , Duncan S. Callaway , Elizabeth L. Ratnam
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