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The rising share of abundant renewable energy inevitably increases volatility in the electricity production. The concept of sector coupling means that the volatility of electricity production to a large degree can be absorbed by dispatching…

Distributed, Parallel, and Cluster Computing · Computer Science 2026-04-29 P. Bechtle , O. Freyermuth , M. Geffers , M. Giffels , M. Hübner , F. Kirfel , J. Kreutz , S. Krieg , S. Matberg , M. Schnepf

To achieve climate neutrality, synergies between circular economy and reduction of greenhouse gas emissions must be strengthened. Previously idle emission reduction potentials of resource efficiency are to be exploited. Since all…

Optimization and Control · Mathematics 2022-02-10 Felix Kullmann , Peter Markewitz , Leander Kotzur , Detlef Stolten

Time-varying electricity pricing better reflects the varying cost of electricity compared to flat-rate pricing. Variations between peak and off-peak costs are increasing due to weather variation, renewable intermittency, and increasing…

General Economics · Economics 2025-09-03 Nathan Engelman Lado , Richard Chen , Saurabh Amin

We study the dependence structure of market states by estimating empirical pairwise copulas of daily stock returns. We consider both original returns, which exhibit time-varying trends and volatilities, as well as locally normalized ones,…

Statistical Finance · Quantitative Finance 2015-09-30 Desislava Chetalova , Marcel Wollschläger , Rudi Schäfer

The problem of estimating the coefficient of bivariate tail dependence is considered here from the robustness point of view; it combines two apparently contradictory theories of robust statistics and extreme value statistics. The usual…

Applications · Statistics 2014-07-08 Abhik Ghosh

We consider the problem of optimal trading for a power producer in the context of intraday electricity markets. The aim is to minimize the imbalance cost induced by the random residual demand in electricity, i.e. the consumption from the…

Trading and Market Microstructure · Quantitative Finance 2018-11-27 René Aïd , Pierre Gruet , Huyên Pham

The transformation of the energy system has raised concerns about the reliability of fully renewable energy systems. We address this question for a 2050 European energy system using an economically optimal adequacy assessment. Our results…

Optimization and Control · Mathematics 2026-03-02 David Franzmann , Nils Ludwig , Jochen Linßen , Detlef Stolten , Heidi Heinrichs

This paper provides an overview of the status of the electricity market in the region, indicating the nexus between electricity consumption with population growth and GDP. It also analyzes the policy portfolio in different countries,…

General Finance · Quantitative Finance 2021-09-07 Mostafa Abdelrashied , Dikshita Bhattacharya

We investigate the extreme return connectedness between the food, fossil energy, and clean energy markets using the quantile connectedness approach, which combines the traditional spillover index with quantile regression. Our results show…

General Economics · Economics 2025-03-11 Ting Zhang , Hai-Chuan Xu , Wei-Xing Zhou

Conventional feasibility studies of deep decarbonisation are often limited in their temporal scope, and are thus unable to draw conclusions about grid reliability over multi-decadal time periods. To address this problem, we introduce…

General Economics · Economics 2025-11-20 J. Dunsmore , L. M. Arthur , R. S. Kemp

A fully renewable European power system comes with a variety of problems. Most of them are linked to the intermittent nature of renewable generation from the sources of wind and photovoltaics. A possible solution to balance European…

Physics and Society · Physics 2017-12-08 Alexander Kies , Bruno Schyska , Lueder von Bremen

In this paper we propose a new method for probabilistic forecasting of electricity prices. It is based on averaging point forecasts from different models combined with expectile regression. We show that deriving the predicted distribution…

Applications · Statistics 2024-02-13 Joanna Janczura

Copulas provide an attractive approach for constructing multivariate distributions with flexible marginal distributions and different forms of dependences. Of particular importance in many areas is the possibility of explicitly forecasting…

Methodology · Statistics 2018-05-22 Feng Li , Yanfei Kang

Studies looking at electricity market designs for very high shares of wind and solar often conclude that the energy-only market will break down. Without fuel costs, it is said that there is nothing to set prices. Symptoms of breakdown…

General Economics · Economics 2025-10-29 Tom Brown , Fabian Neumann , Iegor Riepin

Renewable energy generation is offered through electricity markets, quite some time in advance. This then leads to a problem of decision-making under uncertainty, which may be seen as a newsvendor problem. Contrarily to the conventional…

Optimization and Control · Mathematics 2023-01-31 Pierre Pinson

The accurate prediction of short-term electricity prices is vital for effective trading strategies, power plant scheduling, profit maximisation and efficient system operation. However, uncertainties in supply and demand make such…

Econometrics · Economics 2023-04-20 Mira Watermeyer , Thomas Möbius , Oliver Grothe , Felix Müsgens

Electricity systems are key to transforming today's society into a carbon-free economy. Long-term electricity market mechanisms, including auctions, support schemes, and other policy instruments, are critical in shaping the electricity…

Machine Learning · Computer Science 2025-12-22 Javier Gonzalez-Ruiz , Carlos Rodriguez-Pardo , Iacopo Savelli , Alice Di Bella , Massimo Tavoni

In multivariate extreme value analysis, the nature of the extremal dependence between variables should be considered when selecting appropriate statistical models. Interest often lies with determining which subsets of variables can take…

Methodology · Statistics 2022-07-19 Emma S. Simpson , Jennifer L. Wadsworth , Jonathan A. Tawn

This paper examines empirical methods for estimating the response of aggregated electricity demand to high-frequency price signals, the short-term elasticity of electricity demand. We investigate how the endogeneity of prices and the…

Econometrics · Economics 2023-06-23 Silvana Tiedemann , Raffaele Sgarlato , Lion Hirth

The demand-supply balance of electricity systems is fundamentally linked to climate conditions. In light of this, the present study aims to model the effect of climate change on the European electricity system, specifically on its long-term…

Physics and Society · Physics 2024-02-29 Inès Harang , Fabian Heymann , Laurens P. Stoop