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Linear contracts are ubiquitous in practice, yet optimal contract theory often prescribes complex, nonlinear structures. We provide a distributional robustness justification for linear contracts. We study a principal-agent problem where the…

Computer Science and Game Theory · Computer Science 2026-04-28 Shiliang Zuo

This paper presents models for renewable energy systems with storage, and considers its optimal operation. We model and simulate wind and solar power production using stochastic differential equations as well as storage of the produced…

Optimization and Control · Mathematics 2022-12-20 Nicola Cantisani , Tobias K. S. Ritschel , Christian A. Thilker , Henrik Madsen , John Bagterp Jørgensen

Climate adaptation could yield significant benefits. However, the uncertainty of which future climate scenarios will occur decreases the feasibility of proactively adapting. Climate adaptation projects could be underwritten by benefits paid…

General Finance · Quantitative Finance 2022-07-06 John Nay

This paper develops a multi-objective optimization framework to analyze the trade-offs between annual costs and resilience in energy communities. Under this framework, three energy community operation strategies are analyzed: a reference…

Optimization and Control · Mathematics 2025-04-01 Lia Gruber , Sonja Wogrin

Social acceptance is a multifaceted consideration when planning future energy systems, yet often challenging to address endogeneously. One key aspect regards the spatial distribution of investments. Here, I evaluate the cost impact and…

Physics and Society · Physics 2021-05-03 Fabian Neumann

Demand-side management presents significant benefits in reducing the energy load in smart grids by balancing consumption demands or including energy generation and/or storage devices in the user's side. These techniques coordinate the…

Optimization and Control · Mathematics 2016-05-06 Javier Zazo , Santiago Zazo , Sergio Valcarcel Macua

This paper studies optimal insurance design under asymmetric information in a Stackelberg framework, where a monopolistic insurer faces uncertainty about both the insured's risk attitude, captured by a risk-aversion parameter, and the…

Risk Management · Quantitative Finance 2026-04-20 Xia Han , Bin Li

This article addresses the residential energy cost optimization problem in smart grid. To date, most of the previous research only consider a partial aspect of the cost optimization problem. As a result, they fail to analyze scenarios when…

Systems and Control · Computer Science 2015-05-06 Muhammad Raisul Alam , Marc St-Hilaire , Thomas Kunz

We investigate the problem of allocating energy from renewable sources to flexible consumers in electricity markets. We assume there is a renewable energy supplier that provides energy according to a time-varying (and possibly…

Optimization and Control · Mathematics 2010-06-25 Michael J. Neely , Arash Saber Tehrani , Alexandros G. Dimakis

We consider the optimal risk transfer from an insurance company to a reinsurer. The problem formulation considered in this paper is closely connected to the optimal portfolio problem in finance, with some crucial distinctions. In…

Optimization and Control · Mathematics 2023-06-23 Benjamin Avanzi , Hayden Lau , Mogens Steffensen

The deepening of the penetration of renewable energy is challenging how power system operators cope with their associated variability and uncertainty. The inherent flexibility of dispathchable assets present in power systems, which is often…

Optimization and Control · Mathematics 2024-08-19 Mohamed Awadalla , François Bouffard

Energy management of plug-in Hybrid Electric Vehicles (HEVs) has different challenges from non-plug-in HEVs, due to bigger batteries and grid recharging. Instead of tackling it to pursue energetic efficiency, an approach minimizing the…

Systems and Control · Computer Science 2015-10-27 Simone Formentin , Jacopo Guanetti , Sergio M. Savaresi

In this paper, a novel approach to define the optimal bidding of renewable-only virtual power plants (RVPPs) in the day-ahead, secondary reserve, and intra-day markets is proposed. To this aim, a robust optimization algorithm is developed…

Systems and Control · Electrical Eng. & Systems 2024-02-20 Hadi Nemati , Pedro Sánchez-Martín , Álvaro Ortega , Lukas Sigrist , Enrique Lobato , Luis Rouco

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 decarbonization of many heavy power-consuming industries is dependent on the integration of renewable energy sources and energy storage systems in isolated autonomous power systems. The optimal energy management in such schemes becomes…

Systems and Control · Electrical Eng. & Systems 2022-08-19 Spyridon Chapaloglou , Erick Alves , Vincenzo Trovato , Elisabetta Tedeschi

Parametric insurance contracts translate index measurements to compensation for policyholders' losses using predefined payment schemes. These need to be designed carefully to keep basis risk, i.e. the disparity between payouts and true…

Applications · Statistics 2026-04-24 Markus Johannes Maier , Matthias Scherer

This work studies the decentralized and uncoordinated energy source selection problem for smart-grid consumers with heterogeneous energy profiles and risk attitudes: they compete for a limited amount of renewable energy in their local…

Systems and Control · Electrical Eng. & Systems 2022-03-16 Eleni Stai , Evangelia Kokolaki , Lesia Mitridati , Petros Tatoulis , Ioannis Stavrakakis , Gabriela Hug

The regulations regarding the Paris Agreement are planned to be adapted soon to keep the global temperature rise within 2 0C. Additionally, integrating renewable energy-based equipment and adopting new ways of producing energy resources,…

Optimization and Control · Mathematics 2023-05-01 Su Meyra Tatar , Erdal Aydin

Integration of renewable energy resources with the electric grid is necessary for a sustainable energy future. However, increased penetration of inverter based resources (IBRs) reduce grid inertia, which might then compromise power system…

Systems and Control · Electrical Eng. & Systems 2020-08-18 Hashem Albhrani , Reetam Sen Biswas , Anamitra Pal

As the number of prosumers with distributed energy resources (DERs) grows, the conventional centralized operation scheme may suffer from conflicting interests, privacy concerns, and incentive inadequacy. In this paper, we propose an energy…

Computer Science and Game Theory · Computer Science 2022-06-29 Yue Chen , Changhong Zhao , Steven H. Low , Adam Wierman
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