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This paper presents an integrated model for bidding energy storage in day-ahead and real-time markets to maximize profits. We show that in integrated two-stage bidding, the real-time bids are independent of day-ahead settlements, while the…

Optimization and Control · Mathematics 2024-04-30 Saud Alghumayjan , Jiajun Han , Ningkun Zheng , Ming Yi , Bolun Xu

Virtual bidding plays an important role in two-settlement electric power markets, as it can reduce discrepancies between day-ahead and real-time markets. Renewable energy penetration increases volatility in electricity prices, making…

Machine Learning · Computer Science 2024-12-03 Xuesong Wang , Sharaf K. Magableh , Oraib Dawaghreh , Caisheng Wang , Jiaxuan Gong , Zhongyang Zhao , Michael H. Liao

Electricity price forecasting supports decision-making in energy markets and asset operation. Probabilistic forecasts are increasingly adopted to explicitly quantify uncertainty, typically issued as quantile predictions or ensembles of the…

Statistical Finance · Quantitative Finance 2026-04-22 Simon Hirsch , Florian Ziel

Convergence (virtual) bidding is an important part of two-settlement electric power markets as it can effectively reduce discrepancies between the day-ahead and real-time markets. Consequently, there is extensive research into the bidding…

Optimization and Control · Mathematics 2023-02-09 Letif Mones , Sean Lovett

The participants of the electricity market concern very much the market price evolution. Various technologies have been developed for price forecast. SVM (Support Vector Machine) has shown its good performance in market price forecast. Two…

General Finance · Quantitative Finance 2009-11-13 C. Gao , E. Bompard , R. Napoli , Q. Wan

Inspired from recent insights into the common ground of machine learning, optimization and decision-making, this paper proposes an easy-to-implement, but effective procedure to enhance both the quality of renewable energy forecasts and the…

Optimization and Control · Mathematics 2020-01-17 Miguel Á. Muñoz , Juan M. Morales , Salvador Pineda

Accurate and reliable energy forecasting is essential for power grid operators who strive to minimize extreme forecasting errors that pose significant operational challenges and incur high intra-day trading costs. Incorporating planning…

Computers and Society · Computer Science 2026-05-13 Raffael Theiler , Leandro Von Krannichfeldt , Giovanni Sansavini , Michael F. Howland , Olga Fink

Quantity and price risks are key uncertainties market participants face in electricity markets with increased volatility, for instance, due to high shares of renewables. From day ahead until real-time, there is a large variation in the best…

Methodology · Statistics 2025-02-21 Paul E. Seifert , Emil Kraft , Steffen Bakker , Stein-Erik Fleten

We propose a Bayesian forecast combination framework that, for the first time, embeds forward-looking signals, formulated as predictive priors, directly into the time-varying weight-updating process. This approach enables weights to adapt…

Methodology · Statistics 2025-08-26 Xiaorui Luo , Yanfei Kang , Xue Luo

In the realm of online advertising, advertisers partake in ad auctions to obtain advertising slots, frequently taking advantage of auto-bidding tools provided by demand-side platforms. To improve the automation of these bidding systems, we…

Machine Learning · Computer Science 2025-06-30 Hao Jiang , Yongxiang Tang , Yanxiang Zeng , Pengjia Yuan , Yanhua Cheng , Teng Sha , Xialong Liu , Peng Jiang

Energy storage resources must consider both price uncertainties and their physical operating characteristics when participating in wholesale electricity markets. This is a challenging problem as electricity prices are highly volatile, and…

Machine Learning · Computer Science 2023-06-02 Yousuf Baker , Ningkun Zheng , Bolun Xu

We build the time series of optimal realized portfolio weights from high-frequency data and we suggest a novel Dynamic Conditional Weights (DCW) model for their dynamics. DCW is benchmarked against popular model-based and model-free…

Statistical Finance · Quantitative Finance 2020-04-28 Fabrizio Cipollini , Giampiero M. Gallo , Alessandro Palandri

This paper presents a new approach to volume ratio prediction in financial markets, specifically targeting the execution of Volume-Weighted Average Price (VWAP) strategies. Recognizing the importance of accurate volume profile forecasting,…

Computational Finance · Quantitative Finance 2025-03-11 Hanwool Lee , Heehwan Park

Wind power producers (WPPs) participating in short-term power markets face significant imbalance costs due to their non-dispatchable and variable production. While some WPPs have a large enough market share to influence prices with their…

Machine Learning · Computer Science 2026-03-12 Shobhit Singhal , Marta Fochesato , Liviu Aolaritei , Florian Dörfler

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

Electrifying heavy-duty trucks offers a substantial opportunity to curtail carbon emissions, advancing toward a carbon-neutral future. However, the inherent challenges of limited battery energy and the sheer weight of heavy-duty trucks lead…

Systems and Control · Electrical Eng. & Systems 2024-05-27 Linyu Liu , Zhen Dai , Shiji Song , Xiaocheng Li , Guanting Chen

Probabilistic forecasting in combination with stochastic programming is a key tool for handling the growing uncertainties in future energy systems. Derived from a general stochastic programming formulation for the optimal scheduling and…

Systems and Control · Electrical Eng. & Systems 2022-03-25 Mario Beykirch , Tim Janke , Florian Steinke

Development of efficient and high-performing electrolytes is crucial for advancing energy storage technologies, particularly in batteries. Predicting the performance of battery electrolytes rely on complex interactions between the…

Machine Learning · Computer Science 2024-07-01 Indra Priyadarsini , Vidushi Sharma , Seiji Takeda , Akihiro Kishimoto , Lisa Hamada , Hajime Shinohara

We propose a virtual bidding strategy by modeling the price differences between the day-ahead market and the real-time market as Brownian motion with drift, where the drift rate and volatility are functions of meteorological variables. We…

Portfolio Management · Quantitative Finance 2023-03-07 Zhou Fang

The large integration of variable energy resources is expected to shift a large part of the energy exchanges closer to real-time, where more accurate forecasts are available. In this context, the short-term electricity markets and in…

Trading and Market Microstructure · Quantitative Finance 2020-04-14 Ioannis Boukas , Damien Ernst , Thibaut Théate , Adrien Bolland , Alexandre Huynen , Martin Buchwald , Christelle Wynants , Bertrand Cornélusse
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