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Industrial electricity consumers with flexible demand can profit by adjusting their load to short-term prices and by providing balancing services to the grid. Markets which support this kind of short-term position adjustment are the…

Optimization and Control · Mathematics 2023-03-20 E. Finhold , C. Gärtner , R. Grindel , T. Heller , N. Leithäuser , E. Röger , F. Schirra

The design of the future European energy system depends heavily on how Europe balances its domestic hydrogen production against its reliance on imports. This study reveals that neither-extreme full self-sufficiency nor complete reliance on…

Physics and Society · Physics 2025-10-07 Philipp Dunkel , Theresa Klütz , Jochen Linßen , Detlef Stolten

The growing share of Renewable Energy Sources (RES) in modern power systems increases both grid imbalances and frequency deviations, reinforcing the need for ancillary services such as Frequency Containment Reserve (FCR) and passive…

Systems and Control · Electrical Eng. & Systems 2026-05-26 Celle Hendrickx , Fabio Pavirani , Chris Develder

The exponential growth of renewable energy capacity has brought much uncertainty to electricity prices and to electricity generation. To address this challenge, the energy exchanges have been developing further trading possibilities,…

Statistical Finance · Quantitative Finance 2022-05-24 Michał Narajewski

As the transition to sustainable power generation progresses, green hydrogen production via electrolysis is expected to gain importance as a means for energy storage and flexible load to complement variable renewable generation. With the…

Systems and Control · Electrical Eng. & Systems 2024-12-30 Angelina Lesniak , Andrea Gloppen Johnsen , Noah Rhodes , Line Roald

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

The increased market penetration of renewable energy sources and the rapid development of electric battery storage technologies yield a potential for reducing electricity price volatility while maintaining stability of the power grid. This…

Optimization and Control · Mathematics 2017-06-13 Juri Hinz , Jeremy Yee

Electric power systems are undergoing a major transformation as they integrate intermittent renewable energy sources, and batteries to smooth out variations in renewable energy production. As privately-owned batteries grow from their role…

Theoretical Economics · Economics 2025-04-02 Jerry Anunrojwong , Santiago R. Balseiro , Omar Besbes , Bolun Xu

The presence of variable renewable energy resources with uncertain outputs in day-ahead electricity markets results in additional balancing needs in real-time. Addressing those needs cost-effectively and reliably within a competitive market…

Systems and Control · Electrical Eng. & Systems 2025-01-23 Elina Spyrou , Qiwei Zhang , Robin B. Hytowitz , Ben F. Hobbs , Siddharth Tyagi , Mengmeng Cai , Michael Blonsky

The European Union Emission Trading Scheme (EU ETS) is a cornerstone of the EU's strategy to fight climate change and an important device for plummeting greenhouse gas (GHG) emissions in an economically efficient manner. The power industry…

Theoretical Economics · Economics 2021-05-03 Arega Getaneh Abate , Rossana Riccardi , Carlos Ruiz

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

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

The use of energy storage to balance electric grids is increasing and, with it, the importance of operational optimisation from the twin viewpoints of cost and system stability. In this paper we assess the real option value of balancing…

Optimization and Control · Mathematics 2016-10-19 John Moriarty , Jan Palczewski

An increase in energy production from renewable energy sources is viewed as a crucial achievement in most industrialized countries. The higher variability of power production via renewables leads to a rise in ancillary service costs over…

General Finance · Quantitative Finance 2017-09-25 Mario Mureddu , Hildegard Meyer-Ortmanns

The recent rise of renewable energy produced by many decentralized sources yields interesting market design challenges for electrical grids. Balancing supply and demand in such networks is both a temporal and spatial challenge due to…

Computer Science and Game Theory · Computer Science 2025-08-11 Simon Krogmann , Pascal Lenzner , Alexander Skopalik , Tobias Sträubig

Hybrid power plants comprising renewable power sources and electrolyzers are envisioned to play a key role in accelerating the transition towards decarbonization. It is common in the current literature to use simplified operational models…

Optimization and Control · Mathematics 2023-09-14 Manuel Tobias Baumhof , Enrica Raheli , Andrea Gloppen Johnsen , Jalal Kazempour

Decarbonizing global energy systems requires extensive integration of renewable energy into the electric grid. However, the intermittency and variable nature of wind and other non-dispatchable renewable resources make integration a great…

Hydrogen produced through electrolysis offers a pathway to decarbonize hard-to-abate sectors by replacing gray hydrogen derived from natural gas reforming when produced using renewable power. However, grid-connected electrolyzers may…

Optimization and Control · Mathematics 2025-07-29 Andrea Gloppen Johnsen , Lesia Mitridati , Jalal Kazempour , Line Roald

Transmission System Operators (TSOs) rely on balancing energy provided by Balancing Service Providers (BSPs) to maintain the supply-demand balance in real time. Balance Responsible Parties (BRPs) can simultaneously deviate from their…

Systems and Control · Electrical Eng. & Systems 2025-05-21 Seyed Soroush Karimi Madahi , Kenneth Bruninx , Bert Claessens , Chris Develder

In this study, we develop a theoretical model of strategic equilibrium bidding and price-setting behaviour by heterogeneous and boundedly rational electricity producers and a grid operator in a single electricity market under uncertain…

Physics and Society · Physics 2017-04-27 Jobst Heitzig , Hildegard Meyer-Ortmanns , Sabine Auer