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This paper studies the duopoly competition between renewable energy suppliers with or without energy storage in a local energy market. The storage investment brings the benefits of stabilizing renewable energy suppliers' outputs, but it…

Systems and Control · Electrical Eng. & Systems 2019-10-15 Dongwei Zhao , Hao Wang , Jianwei Huang , Xiaojun Lin

We present modeling and analysis of day-ahead spatio-temporal energy markets in which each competitive aggregator aims at making the highest profit by managing a complex mixture of different energy resources, such as conventional…

Optimization and Control · Mathematics 2020-09-23 Takayuki Ishizaki , Masakazu Koike , Nobuyuki Yamaguchi , Yuzuru Ueda , Jun-ichi Imura

This paper studies the long-term energy management of a microgrid coordinating hybrid hydrogen-battery energy storage. We develop an approximate semi-empirical hydrogen storage model to accurately capture the power-dependent efficiency of…

Optimization and Control · Mathematics 2025-06-10 Ning Qi , Kaidi Huang , Zhiyuan Fan , Bolun Xu

Electricity markets are experiencing a rapid increase in energy storage unit participation. Unlike conventional generation resources, quantifying the competitive operation and identifying if a storage unit is exercising market power is…

Systems and Control · Electrical Eng. & Systems 2025-01-16 Yiqian Wu , Bolun Xu , James Anderson

Arbitrage is one important revenue source for energy storage in electricity markets. However, a large amount of storage in the market will impact the energy price and reduce potential revenues. This can lead to strategic behaviors of…

General Finance · Quantitative Finance 2022-11-17 Dongwei Zhao , Mehdi Jafari , Audun Botterud , Apurba Sakti

Energy storage can absorb variability from the rising number of wind and solar power producers. Storage is different from the conventional generators that have traditionally balanced supply and demand on fast time scales due to its hard…

Computer Science and Game Theory · Computer Science 2015-07-02 Josh A. Taylor , Johanna L. Mathieu , Duncan S. Callaway , Kameshwar Poolla

The future power system is increasingly interconnected via both AC and DC interconnectors. These interconnectors establish links between previously decoupled energy markets. In this paper, we propose an optimal multi-market energy storage…

Optimization and Control · Mathematics 2023-10-03 Md Umar Hashmi , Stephen Hardy , Dirk Van Hertem , Harsha Nagarajan

Wind energy has been increasingly adopted to mitigate climate change. However, the variability of wind energy causes wind curtailment, resulting in considerable economic losses for wind farm owners. Wind curtailment can be reduced using…

Systems and Control · Electrical Eng. & Systems 2023-08-29 Jinhao Li , Changlong Wang , Hao Wang

Strategic bidding problems in electricity markets are widely studied in power systems, often by formulating complex bi-level optimization problems that are hard to solve. The state-of-the-art approach to solve such problems is to…

Optimization and Control · Mathematics 2016-06-21 Mahdi Ghamkhari , Ashkan Sadeghi-Mobarakeh , Hamed Mohsenian-Rad

This study investigates two models of varying complexity for optimizing intraday arbitrage energy trading of a battery energy storage system using a model predictive control approach. Scenarios reflecting different stages of the system's…

Systems and Control · Electrical Eng. & Systems 2025-06-23 Martin Cornejo , Melina Graner , Holger Hesse , Andreas Jossen

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 paper proposes a new convex model predictive control strategy for dynamic optimal power flow between battery energy storage systems distributed in an AC microgrid. The proposed control strategy uses a new problem formulation, based on…

Systems and Control · Computer Science 2017-05-16 Thomas Morstyn , Branislav Hredzak , Ricardo P. Aguilera , Vassilios G. Agelidis

Reduced installation and operating costs give energy storage systems an opportunity to participate actively and profitably in electricity markets. In addition to providing ancillary services, energy storage systems can also arbitrage…

Optimization and Control · Mathematics 2017-02-17 Yishen Wang , Yury Dvorkin , Ricardo Fernández-Blanco , Bolun Xu , Daniel S. Kirschen

Driven by the global decarbonization effort, the rapid integration of renewable energy into the conventional electricity grid presents new challenges and opportunities for the battery energy storage system (BESS) participating in the energy…

Systems and Control · Electrical Eng. & Systems 2022-12-14 Muhammad Anwar , Changlong Wang , Frits de Nijs , Hao Wang

We study a stochastic optimal control problem motivated by the operation of a large ensemble of residential storage devices coordinated by an energy aggregator. The aggregator remunerates prosumers in exchange for direct control of their…

Optimization and Control · Mathematics 2026-03-03 Margherita Fabini , Andrea Pascucci , Alessio Rondelli

With the ongoing transition of electricity markets worldwide from hourly to intra-hourly bidding, market participants--especially Renewable Energy Sources (RES)--gain improved opportunities to adjust energy and reserve schedules and to…

Systems and Control · Electrical Eng. & Systems 2026-02-17 Hadi Nemati , Álvaro Ortega , Enrique Lobato , Luis Rouco

There is growing interest in the use of grid-level storage to smooth variations in supply that are likely to arise with increased use of wind and solar energy. Energy arbitrage, the process of buying, storing, and selling electricity to…

Optimization and Control · Mathematics 2015-09-01 Daniel R. Jiang , Warren B. Powell

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

We consider the task of controlling a battery while balancing two competing objectives that evolve over different time scales. The short-term objective, such as arbitrage or load smoothing, improves with more battery cycling, while the…

Optimization and Control · Mathematics 2025-05-15 Obidike Nnorom , Giray Ogut , Stephen Boyd , Philip Levis

We consider a two-level profit-maximizing strategy, including planning and control, for battery energy storage system (BESS) owners that participate in the primary frequency control (PFC) market. Specifically, the optimal BESS control…

Systems and Control · Computer Science 2016-04-05 Ying Jun , Zhang , Changhong Zhao , Wanrong Tang , Steven H. Low