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Related papers: Reliability-Aware Probabilistic Reserve Procuremen…

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Considering the sequential clearing of energy and reserves in Europe, enabling inter-area reserve exchange requires optimally allocating inter-area transmission capacities between these two markets. To achieve this, we provide a…

Optimization and Control · Mathematics 2021-07-14 Orcun Karaca , Stefanos Delikaraoglou , Maryam Kamgarpour

This paper proposes a market mechanism for multi-interval electricity markets with generator and storage participants. Drawing ideas from supply function bidding, we introduce a novel bid structure for storage participation that allows…

Optimization and Control · Mathematics 2021-10-18 Rajni Kant Bansal , Pengcheng You , Dennice F. Gayme , Enrique Mallada

When the traded energy and reserve products between zones are co-allocated to optimize the infrastructure usage, both deterministic and stochastic flows have to be accounted for on interconnector lines. We focus on allocation models, which…

General Finance · Quantitative Finance 2025-11-05 Dávid Csercsik , Ádám Sleisz

The growing penetration of variable renewable energy sources (VRES) requires additional flexibility reserve to ensure reliable power system operations. Current industry practice typically assumes a certain fraction of the VRES power…

Systems and Control · Electrical Eng. & Systems 2022-12-13 Zhirui Liang , Robert Mieth , Yury Dvorkin , Miguel A. Ortega-Vazquez

Flexible ramping products (FRPs) emerge as a promising instrument for addressing steep and uncertain ramping needs through market mechanisms. Initial implementations of FRPs in North American electricity markets, however, revealed several…

Systems and Control · Electrical Eng. & Systems 2024-09-04 Ogun Yurdakul , Erik Ela , Farhad Billimoria

Investment planning in power utilities, such as generation and transmission expansion, requires decisions under substantial uncertainty over decade--long horizons for policies, demand, renewable availability, and outages, while maintaining…

Machine Learning · Computer Science 2026-03-17 Nicolas M. Cuadrado A. , Mohannad Takrouri , Jiří Němeček , Martin Takáč , Jakub Mareček

Renewable resources are starting to constitute a growing portion of the total generation mix of the power system. A key difference between renewables and traditional generators is that many renewable resources are managed by individuals,…

Optimization and Control · Mathematics 2019-10-07 Pan Li , Shreyas Sekar , Baosen Zhang

Modern market management systems continue to evolve due to the intentions to improve system security and reliability. This evolvement has been leading to a transition of market auction models from a deterministic structure with…

Systems and Control · Electrical Eng. & Systems 2021-02-22 Mohammad Ghaljehei , Mojdeh Khorsand

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

Liberalized electricity markets often include resource adequacy mechanisms that require consumers to contract with generation resources well in advance of real-time operations. While administratively defined mechanisms have most commonly…

Trading and Market Microstructure · Quantitative Finance 2024-03-25 Han Shu , Jacob Mays

The increasing vulnerability of power systems has heightened the need for operating reserves to manage contingencies such as generator outages, line failures, and sudden load variations. Unlike energy costs, driven by consumer demand,…

Systems and Control · Electrical Eng. & Systems 2025-06-06 Luiza Ribeiro , Alexandre Street , Jose Manuel Arroyo , Rodrigo Moreno

The large shares of wind power generation in electricity markets motivate higher levels of operating reserves. However, current reserve sizing practices fail to account for important topological aspects that might hinder their deployment,…

Systems and Control · Electrical Eng. & Systems 2020-04-27 Nicola Viafora , Stefanos Delikaraoglou , Pierre Pinson , Gabriela Hug , Joachim Holbøll

Reliability Options are capacity remuneration mechanisms aimed at enhancing security of supply in electricity systems. They can be framed as call options on electricity sold by power producers to System Operators. This paper provides a…

Pricing of Securities · Quantitative Finance 2019-09-13 Luisa Andreis , Maria Flora , Fulvio Fontini , Tiziano Vargiolu

Securing an adequate supply of dispatchable resources is critical for keeping a power system reliable under high penetrations of variable generation. Traditional resource adequacy mechanisms are poorly suited to exploiting the growing…

Systems and Control · Electrical Eng. & Systems 2022-10-27 Farhad Billimoria , Filiberto Fele , Iacopo Savelli , Thomas Morstyn , Malcolm McCulloch

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

Rapid increase of renewable energy sources and electric vehicles in utility distribution feeders introduces more and more uncertainties. To investigate how such uncertainties may affect the available delivery capability (ADC) of the…

Signal Processing · Electrical Eng. & Systems 2017-12-05 Hao Sheng , Xiaozhe Wang

In this paper, the intra-day multi-interval rolling-window joint dispatch and pricing of energy and reserve is studied under increasing volatile and uncertain renewable generations. A look-ahead energy-reserve co-optimization model is…

Systems and Control · Electrical Eng. & Systems 2023-08-09 Jiantao Shi , Ye Guo , Wenchuan Wu , Hongbin Sun

With an increasing share of volatile renewables, more flexibility is needed to balance the electricity system. In order to enable local flexibility, we suggest a three-stage stochastic market clearing model using community-based…

Optimization and Control · Mathematics 2019-10-28 Sigurd Bjarghov , Christian Ø. Naversen , Kasper Thorvaldsen , Hossein Farahmand

Recent work has demonstrated that water supply pumps in the drinking water distribution network can be leveraged to provide flexibility to the power network, but existing approaches are computationally demanding and/or overly conservative.…

Optimization and Control · Mathematics 2022-07-12 Anna Stuhlmacher , Johanna L. Mathieu

We study procurement design when the buyer is uncertain about both the value of the good and the seller's cost. The buyer has a conjectured model but does not fully trust it. She first identifies mechanisms that maximize her worst-case…

Theoretical Economics · Economics 2025-12-10 Debasis Mishra , Sanket Patil , Alessandro Pavan