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The increasing penetration of renewable energy sources in day-ahead energy markets introduces challenges in balancing supply and demand, ensuring grid resilience, and maintaining trust in decentralized trading systems. This paper proposes a…

Machine Learning · Computer Science 2025-12-09 Navneet Verma , Ying Xie

A promising approach to hedge against the inherent uncertainty of renewable generation is to equip the renewable plants with energy storage systems. This paper focuses on designing profit maximization offering strategies, i.e., the…

Computer Science and Game Theory · Computer Science 2016-12-02 Lin Yang , Mohammad H. Hajiesmaili , Hanling Yi , Minghua Chen

We study a cloud storage operator who provides shared storage service for electricity end-users using the residual part of a multi-service grid-scale battery primarily used for high priority grid services. We design an optimal product…

Signal Processing · Electrical Eng. & Systems 2021-08-16 Mohammad Rasouli , Tao Sun , Camille Pache , Patrick Panciatici , Jean Maeght , Ramesh Johari , Ram Rajagopal

We consider the problem of optimal bidding for virtual trading in two-settlement electricity markets. A virtual trader aims to arbitrage on the differences between day-ahead and real-time market prices; both prices, however, are random and…

Computer Science and Game Theory · Computer Science 2018-08-02 Sevi Baltaoglu , Lang Tong , Qing Zhao

Distributed, controllable energy storage devices offer several benefits to electric power system operation. Three such benefits include reducing peak load, providing standby power, and enhancing power quality. These benefits, however, are…

Physics and Society · Physics 2014-09-10 Reza Arghandeh , Jeremy Woyak , Ahmet Onen , Jaesung Jung , Robert P. Broadwater

Energy storage is expected to play an increasingly important role in mitigating variations that come along with the growing penetration of renewable energy. In this paper, we study the optimal bidding of an energy storage unit in a…

Optimization and Control · Mathematics 2021-09-29 Yue Chen , Wei Wei , Tongxin Li , Yunhe Hou , Feng Liu , João P. S. Catalão

The integration of large shares of electricity produced by non-dispatchable Renewable Energy Sources (RES) leads to an increasingly volatile energy generation side, with temporary local overproduction. The application of energy storage…

Optimization and Control · Mathematics 2016-03-14 Lars Siemer , Frank Schöpfer , David Kleinhans

An increasing share of energy is produced from renewable sources by many small producers. The efficiency of those sources is volatile and, to some extent, random, exacerbating the problem of energy market balancing. In many countries, this…

Machine Learning · Computer Science 2024-02-15 Łukasz Lepak , Paweł Wawrzyński

This paper presents a novel hybrid approach for constricting probabilistic forecasts that combines both the Quantile Regression Averaging (QRA) method and the factor-based averaging scheme. The performance of the approach is evaluated on…

Applications · Statistics 2024-11-20 Katarzyna Maciejowska , Tomasz Serafin , Bartosz Uniejewski

This work proposes a conformal approach for energy storage arbitrage to control the downside risk arising from imperfect price forecasts. Energy storage arbitrage relies solely on predictions of future market prices, while inaccurate price…

Systems and Control · Electrical Eng. & Systems 2025-12-10 Yiqian Wu , Ming Yi , Bolun Xu , James Anderson

This paper proposes a novel energy storage price arbitrage algorithm combining supervised learning with dynamic programming. The proposed approach uses a neural network to directly predicts the opportunity cost at different energy storage…

Systems and Control · Electrical Eng. & Systems 2022-11-22 Ningkun Zheng , Xiaoxiang Liu , Bolun Xu , Yuanyuan Shi

In this paper, we propose to model the energy consumption of smart grid households with energy storage systems as an intertemporal trading economy. Intertemporal trade refers to transaction of goods across time when an agent, at any time,…

Other Computer Science · Computer Science 2015-06-17 Jayaprakash Rajasekharan , Visa Koivunen

With increasingly favorable economics and bundling of different grid services, energy storage systems (ESS) are expected to play a key role in integrating renewable generation. This work considers the coordination of ESS owned by customers…

Optimization and Control · Mathematics 2018-05-31 Sarthak Gupta , Vassilis Kekatos , Walid Saad

Optimal scheduling of batteries has significant potential to reduce electricity costs and to enhance grid resilience. However, effective battery scheduling must account for both physical constraints as well as uncertainties in consumption…

Optimization and Control · Mathematics 2026-04-01 Janik Pinter , Maximilian Beichter , Ralf Mikut , Veit Hagenmeyer , Frederik Zahn

The power networks are evolving with increased active components such as energy storage and flexibility derived from loads such as electric vehicles, heat pumps, industrial processes, etc. Better models are needed to accurately represent…

Systems and Control · Electrical Eng. & Systems 2024-09-13 Md Umar Hashmi , Dirk Van Hertem , Aleen van der Meer , Andrew Keane

In Electricity markets, illiquidity, transaction costs and market price characteristics prevent managers to replicate exactly contracts. A residual risk is always present and the hedging strategy depends on a risk criterion chosen. We…

Computational Finance · Quantitative Finance 2018-08-29 Xavier Warin

This paper applies computational techniques of convex stochastic optimization to optimal operation and valuation of electricity storages in the face of uncertain electricity prices. Our approach is applicable to various specifications of…

Optimization and Control · Mathematics 2025-04-22 Jean-Philippe Chancelier , Michel De Lara , François Pacaud , Teemu Pennanen , Ari-Pekka Perkkiö

In this paper, we propose a two-stage electricity market framework to explore the participation of distributed energy resources (DERs) in a day-ahead (DA) market and a real-time (RT) market. The objective is to determine the optimal bidding…

Optimization and Control · Mathematics 2022-08-30 Yi Guo , Xuejiao Han , Xinyang Zhou , Gabriela Hug

We study how storage, operating as a price maker within a market environment, may be optimally operated over an extended period of time. The optimality criterion may be the maximisation of the profit of the storage itself, where this profit…

Optimization and Control · Mathematics 2016-06-20 James Cruise , Lisa Flatley , Stan Zachary

The increasing reliance on renewable energy generation means that storage may well play a much greater role in the balancing of future electricity systems. We show how heterogeneous stores, differing in capacity and rate constraints, may be…

Optimization and Control · Mathematics 2021-06-14 Stan Zachary , Simon Tindemans , Michael Evans , James Cruise , David Angeli
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