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We propose a new forward electricity market framework that admits heterogeneous market participants with second-order cone strategy sets, who accurately express the nonlinearities in their costs and constraints through conic bids, and a…

Theoretical Economics · Economics 2022-12-20 Anubhav Ratha , Pierre Pinson , Hélène Le Cadre , Ana Virag , Jalal Kazempour

In electricity systems supplied by renewable energy sources (RES), storage operators shift energy across time, helping maintain system adequacy. However, characterizing their strategic role and identifying the conditions under which…

General Economics · Economics 2025-11-18 Arega Getaneh Abate , Dogan Keles , Salim Hassi , Xiufeng Liu , Xiao-Bing Zhang

The increasing integration of renewable energy sources has led to greater volatility and unpredictability in electricity generation, posing challenges to grid stability. Ancillary service markets, such as the German control reserve market,…

Machine Learning · Computer Science 2025-11-19 Vincent Bezold , Lukas Baur , Alexander Sauer

The mushrooming of distributed energy resources turns end-users from passive price-takers to active market participants. To manage those massive proactive end-users efficiently, virtual power plant (VPP) as an innovative concept emerges. It…

Optimization and Control · Mathematics 2020-09-15 Yue Chen , Tongxin Li , Changhong Zhao , Wei Wei

Electricity production currently generates approximately 25% of greenhouse gas emissions in the USA. Thus, increasing the amount of renewable energy is a key step to carbon neutrality. However, integrating a large amount of fluctuating…

Optimization and Control · Mathematics 2021-05-20 Aleksandr Lukashevich , Yury Maximov

The ever-increasing integration of stochastic renewable energy sources into power systems operation is making the supply-demand balance more challenging. While joint chance-constrained methods are equipped to model these complexities and…

Systems and Control · Electrical Eng. & Systems 2025-01-23 Meiyi Li , Javad Mohammadi

We address the problem of improving bidders' strategies in prior-dependent revenue-maximizing auctions and introduce a simple and generic method to design novel bidding strategies if the seller uses past bids to optimize her mechanism. We…

Computer Science and Game Theory · Computer Science 2021-09-15 Thomas Nedelec , Marc Abeille , Clément Calauzènes , Benjamin Heymann , Vianney Perchet , Noureddine El Karoui

On-demand resource provisioning in cloud computing provides tailor-made resource packages (typically in the form of VMs) to meet users' demands. Public clouds nowadays provide more and more elaborated types of VMs, but have yet to offer the…

Computer Science and Game Theory · Computer Science 2016-11-24 Xiaoxi Zhang , Chuan Wu , Zongpeng Li , Francis C. M. Lau

It is anticipated that large-scale energy storage facility (ESF) will become an essential part of the future energy markets to increase the penetration of renewables. In this paper, a new optimization algorithm is developed to participate…

Optimization and Control · Mathematics 2022-03-02 Farhad Samadi Gazijahani , Rasoul Esmaeilzadeh

In this paper, a novel non-intrusive probabilistic power flow (PPF) analysis method based on the low-rank approximation (LRA) is proposed, which can accurately and efficiently estimate the probabilistic characteristics (e.g., mean,…

Signal Processing · Electrical Eng. & Systems 2019-02-05 Hao Sheng , Xiaozhe Wang

We consider various stochastic models that incorporate the notion of risk-averseness into the standard 2-stage recourse model, and develop novel techniques for solving the algorithmic problems arising in these models. A key notable feature…

Data Structures and Algorithms · Computer Science 2008-05-06 Chaitanya Swamy

We introduce the refined assortment optimization problem where a firm may decide to make some of its products harder to get instead of making them unavailable as in the traditional assortment optimization problem. Airlines, for example,…

Theoretical Economics · Economics 2021-02-08 Gerardo Berbeglia , Alvaro Flores , Guillermo Gallego

In this paper, we discuss the utilization of perturbed risk levels (PRLs) for the solution of chance-constrained problems via sampling-based approaches. PRLs allow the consideration of distributional ambiguity by rescaling the risk level of…

Optimization and Control · Mathematics 2025-12-12 Moritz Heinlein , Teodoro Alamo , Sergio Lucia

It is becoming increasingly apparent that probabilistic approaches can overcome conservatism and computational complexity of the classical worst-case deterministic framework and may lead to designs that are actually safer. In this paper we…

Applications · Statistics 2008-11-01 Xinjia Chen , Kemin Zhou , Jorge L. Aravena

Distribution grid reliability and resilience has become a major topic of concern for utilities and their regulators. In particular, with the increase in severity of extreme events, utilities are considering major investments in distribution…

Optimization and Control · Mathematics 2023-06-13 Alexandre Moreira , Miguel Heleno , Alan Valenzuela , Joseph H. Eto , Jaime Ortega , Cristina Botero

The increasing penetration of renewable energy sources introduces significant challenges to power grid stability, primarily due to their inherent variability. A new opportunity for grid operation is the smart integration of electricity…

Optimization and Control · Mathematics 2025-10-30 Janik Pinter , Frederik Zahn , Maximilian Beichter , Ralf Mikut , Veit Hagenmeyer

We study the robust sequential screening problem of a monopolist seller of multiple cloud computing services facing a buyer who has private information about his demand distribution for these services. At the time of contracting, the buyer…

Theoretical Economics · Economics 2025-02-12 Dirk Bergemann , Rahul Deb

We propose a novel distribution-free scheme to solve optimization problems where the goal is to minimize the expected value of a cost function subject to probabilistic constraints. Unlike standard sampling-based methods, our idea consists…

Optimization and Control · Mathematics 2025-05-28 Francesco Cordiano , Matin Jafarian , Bart De Schutter

We investigate approximately optimal mechanisms in settings where bidders' utility functions are non-linear; specifically, convex, with respect to payments (such settings arise, for instance, in procurement auctions for energy). We provide…

Computer Science and Game Theory · Computer Science 2017-02-23 Amy Greenwald , Takehiro Oyakawa , Vasilis Syrgkanis

Although both data availability and the demand for accurate forecasts are increasing, collaboration between stakeholders is often constrained by data ownership and competitive interests. In contrast to recent proposals within cooperative…

Machine Learning · Computer Science 2026-05-14 Michael Vitali , Pierre Pinson