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This paper revisits the classic instrument choice problem in a setting with consumption externalities, through the lens of robust mechanism design. A regulator can implement any incentive-compatible policy but is uncertain about how…

General Economics · Economics 2026-03-18 Zi Yang Kang

Time-varying electricity pricing better reflects the varying cost of electricity compared to flat-rate pricing. Variations between peak and off-peak costs are increasing due to weather variation, renewable intermittency, and increasing…

General Economics · Economics 2025-09-03 Nathan Engelman Lado , Richard Chen , Saurabh Amin

We propose and analyze a day-ahead reserve market model that handles bids from flexible loads. This pool market model takes into account the fact that a load modulation in one direction must usually be compensated later by a modulation of…

Computer Science and Game Theory · Computer Science 2014-05-28 Sébastien Mathieu , Quentin Louveaux , Damien Ernst , Bertrand Cornélusse

In this paper, we examine in an abstract framework, how a tradeoff between efficiency and robustness arises in different dynamic oligopolistic market architectures. We consider a market in which there is a monopolistic resource provider and…

Systems and Control · Computer Science 2013-10-02 Qingqing Huang , Mardavij Roozbehani , Munther A Dahleh

Renewable energy has attracted significant attention over the last decade, conceivably due to its environmental benefits and the recent drops in the development and deployment cost of the technology. The increase in renewable generation,…

Systems and Control · Computer Science 2016-10-25 Alireza Majzoobi , Amin Khodaei , Shay Bahramirad , Math H J Bollen

Explosive growth in energy-intensive AI data centers is outstripping the pace of power grid interconnection and transmission expansion. While operational flexibility has been proposed to mitigate this stress, existing processes are often…

Systems and Control · Electrical Eng. & Systems 2026-05-19 Dongjoo Kim , Lin Dong , Le Xie

The paper proposes a framework for modeling and analysis of the dynamics of supply, demand, and clearing prices in power system with real-time retail pricing and information asymmetry. Real-time retail pricing is characterized by passing on…

Systems and Control · Computer Science 2011-06-08 Mardavij Roozbehani , Munther A Dahleh , Sanjoy K Mitter

In pursuit of carbon neutrality, many countries have adopted renewable portfolio standards to facilitate the integration of renewable energy. However, increasing penetration of renewable energy resources will also pose higher requirements…

Systems and Control · Electrical Eng. & Systems 2023-12-27 Wenli Wu , Ye Guo , Jiantao Shi

In the context of energy transition, industrial plants that heavily rely on electricity face more and more price volatility. To continue operating in these conditions, the directors become continually more willing to increase their…

Optimization and Control · Mathematics 2021-04-20 Thibaut Cuvelier

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

Energy storage can absorb variability from the rising number of wind and solar power producers. Storage is different from the conventional generators that have traditionally balanced supply and demand on fast time scales due to its hard…

Computer Science and Game Theory · Computer Science 2015-07-02 Josh A. Taylor , Johanna L. Mathieu , Duncan S. Callaway , Kameshwar Poolla

Recently, the volatility associated with marginal prices has increased due to large scale integration of renewable generation. Price volatility is undesirable from a consumer perspective. To address this issue, we present a framework for…

Optimization and Control · Mathematics 2018-12-11 Shantanu Chakraborty , Kyri Baker , Milos Cvetkovic , Remco Verzijlbergh , Zofia Lukszo

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

Electrified heating systems with thermal storage, such as electric boilers and heat pumps, represent a major source of demand-side flexibility. Under current electricity market designs, balance responsible parties (BRPs) operating such…

Systems and Control · Electrical Eng. & Systems 2026-02-20 Alessandro Quattrociocchi , Manisha Talukdar , Pere Izquierdo Gómez , Tomislav Dragicevic

Load-serving entities which procure electricity from the wholesale electricity market to service end-users face significant quantity and price risks due to the volatile nature of electricity demand and quasi-fixed residential tariffs at…

Systems and Control · Computer Science 2017-03-21 Datong P. Zhou , Munther A. Dahleh , Claire J. Tomlin

Data imbalance is ubiquitous when applying machine learning to real-world problems, particularly regression problems. If training data are imbalanced, the learning is dominated by the densely covered regions of the target distribution and…

Machine Learning · Computer Science 2024-10-29 Yuchang Jiang , Vivien Sainte Fare Garnot , Konrad Schindler , Jan Dirk Wegner

Climate policy modelling is a key tool for assessing mitigation strategies in complex systems, where uncertainty is inherent and unavoidable. We present a general methodology for extensive uncertainty analysis in this field. While other…

Applications · Statistics 2026-05-15 Ian J. Burton , Femke J. M. M. Nijsse , James M. Salter

Motivated by the increasing need to hedge against load and generation uncertainty in the operation of power grids, we propose flexibility maximization during operation. We consider flexibility explicitly as the amount of uncertainty that…

Optimization and Control · Mathematics 2025-01-27 Aron Zingler , Stephane Fliscounakis , Patrick Panciatici , Alexander Mitsos

Renewable energy productions and electrification of mobility are promising solutions to reduce greenhouse gas emissions. Their effective integration in a power grid encounters several challenges. The uncertain nature of renewable energy…

Systems and Control · Electrical Eng. & Systems 2023-01-11 Manijeh Alipour , Omid Alizadeh-Mousavi

The February 2021 Texas winter power outage has led to hundreds of deaths and billions of dollars in economic losses, largely due to the generation failure and record-breaking electric demand. In this paper, we study the scaling-up of…

Systems and Control · Electrical Eng. & Systems 2022-06-02 Dongqi Wu , Xiangtian Zheng , Ali Menati , Lane Smith , Bainan Xia , Yixing Xu , Chanan Singh , Le Xie
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