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Electricity market operators worldwide use mixed-integer linear programming to solve the allocation problem in wholesale electricity markets. Prices are typically determined based on the duals of relaxed versions of this optimization…

Computer Science and Game Theory · Computer Science 2023-12-13 Mete Şeref Ahunbay , Martin Bichler , Teodora Dobos , Johannes Knörr

To ensure reliable operation of power grids, their frequency shall stay within strict bounds. Multiple sources of disturbances cause fluctuations of the grid frequency, ranging from changing demand over volatile feed-in to energy trading.…

Statistical Finance · Quantitative Finance 2021-03-29 Benjamin Schäfer , Marc Timme , Dirk Witthaut

As conventional flexibility providers are gradually being replaced by variable renewable energies and electricity demand keeps rising, additional flexibility will become increasingly valuable for the power system. Meanwhile, new sources of…

Systems and Control · Electrical Eng. & Systems 2023-11-14 Périne Cunat

The integration of renewable generation poses operational and economic challenges for the electricity grid. For the core problem of power balance, the legacy paradigm of tailoring supply to follow random demand may be inappropriate under…

Systems and Control · Computer Science 2014-09-25 Ashutosh Nayyar , Matias Negrete-Pincetic , Kameshwar Poolla , Pravin Varaiya

The energy market relies on forecasting capabilities of both demand and power generation that need to be kept in dynamic balance. Today, when it comes to renewable energy generation, such decisions are increasingly made in a liberalized…

Machine Learning · Computer Science 2022-03-15 Odin Foldvik Eikeland , Finn Dag Hovem , Tom Eirik Olsen , Matteo Chiesa , Filippo Maria Bianchi

The energy transition is expected to significantly increase the share of renewable energy sources whose production is intermittent in the electricity mix. Apart from key benefits, this development has the major drawback of generating a…

Trading and Market Microstructure · Quantitative Finance 2023-01-30 Thibaut Théate , Antonio Sutera , Damien Ernst

We develop a stochastic equilibrium model for an electricity market with asymmetric renewable energy forecasts. In our setting, market participants optimize their profits using public information about a conditional expectation of energy…

Optimization and Control · Mathematics 2020-05-26 Vladimir Dvorkin , Jalal Kazempour , Pierre Pinson

This paper undertakes a comprehensive investigation of electricity price forecasting methods, focused on the Irish Integrated Single Electricity Market, particularly on changes during recent periods of high volatility. The primary objective…

Machine Learning · Computer Science 2024-08-13 Ben Harkin , Xueqin Liu

In two-stage electricity markets, renewable power producers enter the day-ahead market with a forecast of future power generation and then reconcile any forecast deviation in the real-time market at a penalty. The choice of the forecast…

Systems and Control · Electrical Eng. & Systems 2025-01-15 Vladimir Dvorkin

The variability and intermittency of renewable energy sources pose several challenges for power systems operations, including energy curtailment and price volatility. In power systems with considerable renewable sources, co-variability in…

Systems and Control · Electrical Eng. & Systems 2023-07-21 Elnaz Kabir , Vivek Srikrishnan , M. Vivienne Liu , Scott Steinschneider , C. Lindsay Anderson

Efficient markets are characterised by profit-driven participants continuously refining their positions towards the latest insights. Margins for profit generation are generally small, shaping a difficult landscape for automated trading…

Computational Engineering, Finance, and Science · Computer Science 2025-04-16 Robin Bruneel , Mathijs Schuurmans , Panagiotis Patrinos

The imbalance costs incurred by a stochastic power producer due to forecast production errors have a significant impact on its total profit and therefore, such an impact needs to be taken into account when evaluating investment decisions.…

Optimization and Control · Mathematics 2014-02-20 Salvador Pineda , Juan Miguel Morales

Power grids must modernize to meet climate goals while maintaining reliable and stable operating conditions. Yet progress is hindered by a limited understanding of the stochastic processes underlying grid frequency and phase-angle…

Physics and Society · Physics 2026-04-06 Alessandro Lonardi , Jacques M. Maritz , Leonardo Rydin Gorjão , Christian Beck

A fundemantal and unanswered question for the widely shared goal of electrifying passenger vehicles is how the price of electricity, which can vary greatly across countries and regions, affects buying behavior. I make use of a natural…

General Economics · Economics 2023-04-05 Johannes Mauritzen

Increased uptake of variable renewable generation and further electrification of energy demand necessitate efficient coordination of flexible demand resources to make most efficient use of power system assets. Flexible electrical loads are…

Systems and Control · Electrical Eng. & Systems 2021-06-11 Hazem A. Abdelghany , Simon H. Tindemans , Mathijs M. de Weerdt , Han la Poutré

Accurate short-term electricity price forecasting is crucial for strategically scheduling demand and generation bids in day-ahead markets. While data-driven techniques have shown considerable prowess in achieving high forecast accuracy in…

Machine Learning · Computer Science 2025-12-05 Maria Margarida Mascarenhas , Jilles De Blauwe , Mikael Amelin , Hussain Kazmi

Hydrogen is expected to play a key role in the energy transition. Analyses exploring the price of hydrogen usually calculate average or marginal production costs regardless of the time of delivery. A key factor that affects the price of…

Systems and Control · Electrical Eng. & Systems 2025-04-16 Hazem Abdel-Khalek , Eddy Jalbout , Caspar Schauß , Benjamin Pfluger

Volume imbalance in a limit order book is often considered as a reliable indicator for predicting future price moves. In this work, we seek to analyse the nuances of the relationship between prices and volume imbalance. To this end, we…

Trading and Market Microstructure · Quantitative Finance 2024-07-24 Sergio Pulido , Mathieu Rosenbaum , Emmanouil Sfendourakis

Electricity is typically traded in day-ahead auctions because many power system decisions, such as unit commitment, must be made in advance. However, when wind and solar generators sell power one day ahead, they face uncertainty about their…

General Economics · Economics 2026-04-16 Thomas Hübner

During the last years, European intraday power markets have gained importance for balancing forecast errors due to the rising volumes of intermittent renewable generation. However, compared to day-ahead markets, the drivers for the intraday…

Statistical Finance · Quantitative Finance 2023-10-06 Simon Hirsch , Florian Ziel