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We consider the problem of co-optimized energy-reserve market clearing with state-of-charge (SoC) dependent bids from battery storage participants. While SoC-dependent bids capture storage's degradation and opportunity costs, such bids…

Systems and Control · Electrical Eng. & Systems 2024-08-27 Cong Chen , Siying Li , Lang Tong

We propose a scenario-oriented approach for energy-reserve joint procurement and pricing for electricity market. In this model, without the empirical reserve requirements, reserve is procured according to all possible contingencies and…

Systems and Control · Electrical Eng. & Systems 2020-11-23 Jiantao Shi , Ye Guo , Lang Tong , Wenchuan Wu , Hongbin Sun

As the share of variable renewable energy sources increases in the electricity mix, new solutions are needed to build a flexible and reliable grid. Energy arbitrage with battery storage systems supports renewable energy integration into the…

Optimization and Control · Mathematics 2025-12-17 Alban Puech , Gorazd Dimitrov , Claudia D'Ambrosio

A central challenge in using price signals to coordinate the electricity consumption of a group of users is the operator's lack of knowledge of the users due to privacy concerns. In this paper, we develop a two-time-scale incentive…

Computer Science and Game Theory · Computer Science 2024-04-01 Jiayi Li , Matthew Motoki , Baosen Zhang

The rapid expansion of wind and solar energy leads to an increasing volatility in the electricity generation. Previous studies have shown that storage devices provide an opportunity to balance fluctuations in the power grid. An economical…

Optimization and Control · Mathematics 2017-11-06 Lars Siemer , Wided Medjroubi

High shares of variable renewable energy necessitate substantial energy storage capacity. However, it remains unclear how to design a market that, on the one hand, ensures a stable and sufficient income for storage firms, and, on the other…

Systems and Control · Electrical Eng. & Systems 2024-02-06 Aviad Navon , Juri Belikov , Ariel Orda , Yoash Levron

Energy storage are strategic participants in electricity markets to arbitrage price differences. Future power system operators must understand and predict strategic storage arbitrage behaviors for market power monitoring and capacity…

Systems and Control · Electrical Eng. & Systems 2024-02-02 Yuexin Bian , Ningkun Zheng , Yang Zheng , Bolun Xu , Yuanyuan Shi

We consider the problem of characterizing the locational marginal value of energy storage capacity in electric power networks with stochastic renewable supply and demand. The perspective taken is that of a system operator, whose objective…

Optimization and Control · Mathematics 2016-12-07 Subhonmesh Bose , Eilyan Bitar

We propose an online pricing mechanism for electric vehicle (EV) charging. A charging station decides prices for each arriving EV depending on the energy and the time within which the EV will be served (i.e. deadline). The user selects…

Optimization and Control · Mathematics 2017-08-04 Arnob Ghosh , Vaneet Aggarwal

Large scale electricity storage is set to play an increasingly important role in the management of future energy networks. A major aspect of the economics of such projects is captured in arbitrage, i.e. buying electricity when it is cheap…

Optimization and Control · Mathematics 2015-05-25 James Cruise , Lisa Flatley , Richard Gibbens , Stan Zachary

In electricity markets, customers are increasingly constrained by their budgets. A budget constraint for a user is an upper bound on the price multiplied by the quantity. However, since prices are determined by the market equilibrium, the…

Computer Science and Game Theory · Computer Science 2026-03-24 Lila Perkins , Baosen Zhang

Decarbonizing electric grids is a crucial global endeavor in the pursuit of carbon neutrality. Taking carbon emissions from generation into account when pricing electricity usage is an essential way to achieve this goal. However, such…

Optimization and Control · Mathematics 2024-04-19 Yue Chen , Changhong Zhao

We consider some crucial problems related to the secure and reliable operation of power systems with high renewable penetrations: how much reserve should we procure, how should reserve resources distribute among different locations, and how…

Systems and Control · Electrical Eng. & Systems 2021-07-19 Jiantao Shi , Ye Guo , Lang Tong , Wenchuan Wu , Hongbin Sun

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

In this paper, we consider a community energy storage (CES) system that is shared by various electricity consumers who want to charge and discharge the CES throughout a given time span. We study the problem facing the manager of such a CES…

Systems and Control · Electrical Eng. & Systems 2022-03-15 Nathaniel Tucker , Mahnoosh Alizadeh

With the rapidly increased penetration of renewable generations, incentive-based demand side management (DSM) shows great value on alleviating the uncertainty and providing flexibility for microgrid. However, how to price those demand…

Optimization and Control · Mathematics 2019-08-06 Zhaohao Ding , Feng Zhu , Yajing Wang , Ying Lu , Lizi Zhang

The primary concerns of this paper are twofold: to understand the economic value of storage in the presence of ramp constraints and exogenous electricity prices, and to understand the implications of the associated optimal storage…

Optimization and Control · Mathematics 2012-11-09 Ali Faghih , Mardavij Roozbehani , Munther A. Dahleh

Motivated by the need of assessing the optimal allocation of battery energy storage services across various markets and the corresponding impact on market operations, an optimization framework is proposed in this work to coordinate the…

Systems and Control · Electrical Eng. & Systems 2020-02-25 Reza Khalilisenobari , Meng Wu

This paper proposes a bi-level optimization framework to investigate the optimal market operation strategies of price-maker battery energy storage systems (BESSs) in real-time energy, spinning reserve, and pay as performance regulation…

Systems and Control · Electrical Eng. & Systems 2022-01-20 Reza Khalilisenobari , Meng Wu

This paper proposes a doubled-sided auction mechanism with price discrimination for social welfare (SW) maximization in the electricity and heating market. In this mechanism, energy service providers (ESPs) submit offers and load…

Computer Science and Game Theory · Computer Science 2022-05-31 Lu Wang , Wei Gu , Shuai Lu , Haifeng Qiu , Zhi Wu