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This paper studies the optimal investment behavior of renewable electricity producers in a competitive market, where both prices and installation costs are influenced by aggregate industry activity. We model the resulting crowding effects…

Optimization and Control · Mathematics 2025-07-16 Emma Hubert , Dimitrios Lolas , Ronnie Sircar

Climate and energy policy targets of the European Commission aim to make Europe the first climate-neutral continent by 2050. For low-carbon and net-neutral energy systems primarily based on variable renewable power generation, issues…

General Economics · Economics 2025-06-06 Diana Böttger , Philipp Härtel

Microgrids are local energy systems that integrate energy production, demand, and storage units. They are generally connected to the regional grid to import electricity when local production and storage do not meet the demand. In this…

In this work, we propose a multi-layer market for vehicle-to-grid energy trading. In the macro layer, we consider a double auction mechanism, under which the utility company act as an auctioneer and energy buyers and sellers interact. This…

Computer Science and Game Theory · Computer Science 2016-09-07 Albert Y. S. Lam , Longbo Huang , Alonso Silva , Walid Saad

One approach to reducing greenhouse gas (GHG) emissions is to incentivize carbon capturing and carbon reducing projects while simultaneously penalising excess GHG output. In this work, we present a novel market framework and characterise…

General Finance · Quantitative Finance 2024-06-19 Liam Welsh , Sebastian Jaimungal

Tackling climate change requires the rapid and deep decarbonization of electric power systems. While energy management systems (EMSs) play a central role in this transition, conventional EMSs focus mainly on economic efficiency and often…

Systems and Control · Electrical Eng. & Systems 2026-03-10 Young-ho Cho , Mohamad Chehade , Fatima Al-Janahi , Sol Lim , Javad Mohammadi , Hao Zhu

The implementation of electricity markets based on locational marginal pricing in a multi-settlement process has allowed wholesale competition, with pricing mechanisms that incentivize the optimal allocation of generation, transmission, and…

Systems and Control · Electrical Eng. & Systems 2020-12-29 Veronica R. Bosquezfoti , Andrew L. Liu

The emergence of distributed generation and the electrification of demand have opened the possibility for prosumers to participate in electricity markets, receiving economic benefits on their bills and contributing to the reduction of…

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

The continuous penetration of distributed energy resources (DER) in the electric power grid is driving a new paradigm shift towards transactive energy system (TES), an active and more sustainable system characterized by distributed…

Systems and Control · Electrical Eng. & Systems 2021-04-01 Fredmar Asarias , Michael Angelo Pedrasa

Incorporating renewable energy sources (RESs) into manufacturing systems has been an active research area in order to address many challenges originating from the unpredictable nature of RESs such as photovoltaics.In the energy-aware…

Systems and Control · Electrical Eng. & Systems 2023-02-03 Zhean Shao , Wen Li , Ying Tan

We propose a real-time nodal pricing mechanism for cost minimization and voltage control in a distribution network with autonomous distributed energy resources and analyze the resulting market using stochastic game theory. Unlike existing…

Systems and Control · Electrical Eng. & Systems 2025-09-04 Eli Brock , Jingqi Li , Javad Lavaei , Somayeh Sojoudi

Recently, chance-constrained stochastic electricity market designs have been proposed to address the shortcomings of scenario-based stochastic market designs. In particular, the use of chance-constrained market-clearing avoids trading off…

Optimization and Control · Mathematics 2021-06-14 Alvaro Gonzalez-Castellanos , Anton Hinneck , Robert Mieth , David Pozo , Yury Dvorkin

This work considers energy management in a grid-connected microgrid which consists of multiple conventional generators (CGs), renewable generators (RGs) and energy storage systems (ESSs). A two-stage optimization approach is presented to…

Optimization and Control · Mathematics 2016-03-21 Wuhua Hu , Ping Wang , Hoay Beng Gooi

Stochastic controllers are perceived as a promising solution for techno-economic operation of distribution networks having higher generation uncertainties at large penetration of renewables. These controllers are supported by forecasters…

Systems and Control · Electrical Eng. & Systems 2023-05-08 Salish Maharjan , Prashant Tiwari , Rui Cheng , Zhaoyu Wang

Although the specific structures of electricity markets are diverse around the world, they were all conceived on the premise of predictable, controllable generation with nonnegligible marginal costs. Recent changes, specifically, the…

Computer Science and Game Theory · Computer Science 2020-12-10 Orcun Karaca

The growing amount of intermittent renewables in power generation creates challenges for real-time matching of supply and demand in the power grid. Emerging ancillary power markets provide new incentives to consumers (e.g., electrical…

Systems and Control · Computer Science 2016-02-09 Hao Chen , Zhenhua Liu , Ayse K. Coskun , Adam Wierman

In order to deal with market power that sporadically results from contingencies (e.g., severe weather, plant outages) most electricity markets have institutions in charge of monitoring market performance and mitigating market power. The…

Optimization and Control · Mathematics 2017-03-07 Shi Pu , Alfredo Garcia

The European power grid can be divided into several market areas where the price of electricity is determined in a day-ahead auction. Market participants can provide continuous hourly bid curves and combinatorial bids with associated…

Optimization and Control · Mathematics 2015-03-02 Alexander Martin , Johannes C. Müller , Sebastian Pokutta

The concept of low-carbon building is proposed to ameliorate the climate change caused by environmental problems and realize carbon neutrality at the building level in urban areas. In addition, renewable energy curtailment in the power…

Systems and Control · Electrical Eng. & Systems 2022-03-22 Zuxun Xiong , Xinwei Shen , Qinglai Guo , Hongbin Sun