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Extreme events, exacerbated by climate change, pose significant risks to the energy system and its consumers. However there are natural limits to the degree of protection that can be delivered from a centralised market architecture.…

General Economics · Economics 2023-02-06 Farhad Billimoria , Filiberto Fele , Iacopo Savelli , Thomas Morstyn , Malcolm McCulloch

With the rise of emerging risks, model uncertainty poses a fundamental challenge in the insurance industry, making robust pricing a first-order question. This paper investigates how insurers' robustness preferences shape competitive…

Risk Management · Quantitative Finance 2025-10-20 Shunzhi Pang

This review presents the set of electricity price models proposed in the literature since the opening of power markets. We focus on price models applied to financial pricing and risk management. We classify these models according to their…

Mathematical Finance · Quantitative Finance 2021-07-30 Thomas Deschatre , Olivier Féron , Pierre Gruet

The Intergovernmental Panel on Climate Change proposes different mitigation strategies to achieve the net emissions reductions that would be required to follow a pathway that limits global warming to 1.5{\deg}C with no or limited overshoot.…

Systems and Control · Electrical Eng. & Systems 2021-12-10 Jonathan Dumas

This work studies equilibrium problems under uncertainty where firms maximize their profits in a robust way when selling their output. Robust optimization plays an increasingly important role when best guaranteed objective values are to be…

Optimization and Control · Mathematics 2022-02-24 Christian Biefel , Frauke Liers , Jan Rolfes , Lars Schewe , Gregor Zöttl

Several research studies have shown that future sustainable electricity systems, mostly based on renewable generation and storage, are feasible with current technologies and costs. However, recent episodes of extreme weather conditions,…

Systems and Control · Electrical Eng. & Systems 2023-09-26 Francisco Gutierrez-Garcia , Angel Arcos-Vargas , Antonio Gomez-Exposito

As consumer flexibility becomes expected, it is important that the market mechanisms which attain that flexibility are perceived as fair. We set out fairness issues in energy markets today, and propose a market design to address them.…

Systems and Control · Electrical Eng. & Systems 2025-07-17 Shaun Sweeney , Chris King , Mark O'Malley , Robert Shorten

System operators employ operating reserves to deal with unexpected variations of demand and generation and guarantee the security of supply. However, they face new challenges to ensure this mission with the increasing share of renewable…

Systems and Control · Electrical Eng. & Systems 2023-08-22 Jonathan Dumas , Viktor Terrier , Frédéric Bienvenu , Sébastien Finet , Nathalie Grisey

One of the major barriers for the retailers is to understand the consumption elasticity they can expect from their contracted demand response (DR) clients. The current trend of DR products provided by retailers are not consumer-specific,…

Systems and Control · Electrical Eng. & Systems 2021-11-26 Kamalanathan Ganesan , João Tomé Saraiva , Ricardo J. Bessa

Pricing and settlement mechanisms are crucial for efficient re-source allocation, investment incentives, market competition, and regulatory oversight. In the United States, Regional Transmission Operators (RTOs) adopts a uniform pricing…

Systems and Control · Electrical Eng. & Systems 2024-10-30 Hamid Davoudi , Fengyu Wang , Yonghong Chen , Di Shi , Alinson Xavier , Feng Qiu

The electrical generation and transmission infrastructures of many countries are under increased pressure. This partially reflects the move towards low carbon economies and the increased reliance on renewable power generation systems. There…

Physics and Society · Physics 2022-01-12 Corneliu Arsene

Contemporary electricity distribution systems are being challenged by the variability of renewable energy sources. Slow response times and long energy management periods cannot efficiently integrate intermittent renewable generation and…

Systems and Control · Computer Science 2016-02-02 Gang Wang , Vassilis Kekatos , Antonio J. Conejo , Georgios B. Giannakis

Increased uptake of variable renewable generation and further electrification of energy demand necessitate efficient coordination of flexible demand resources to make most efficient use of power system assets. Flexible electrical loads are…

Systems and Control · Electrical Eng. & Systems 2021-06-11 Hazem A. Abdelghany , Simon H. Tindemans , Mathijs M. de Weerdt , Han la Poutré

In recent years, under deregulated environment, electric utility companies have been encouraged to ensure maximum system reliability through the employment of cost-effective long-term asset management strategies. To help achieve this goal,…

Computational Engineering, Finance, and Science · Computer Science 2020-07-02 Ming Dong , Alexandre B. Nassif

The development of new methods and representations for temporal decision-making requires a principled basis for characterizing and measuring the flexibility of decision strategies in the face of uncertainty. Our goal in this paper is to…

Artificial Intelligence · Computer Science 2013-02-21 Tom Chavez , Ross D. Shachter

As the penetration level of transmission-scale time-intermittent renewable generation resources increases, control of flexible resources will become important to mitigating the fluctuations due to these new renewable resources. Flexible…

Optimization and Control · Mathematics 2013-09-12 Krishnamurthy Dvijotham , Scott Backhaus , Misha Chertkov

As the installation of electronically interconnected renewable energy resources grows rapidly in power systems, system frequency maintenance and control become challenging problems to maintain the system reliability in bulk power systems.…

Optimization and Control · Mathematics 2020-06-09 Lei Fan , Chaoyue Zhao , Guangyuan Zhang , Qiuhua Huang

We consider a quasi-probability distribution of work for an isolated quantum system coupled to the energy-storage device given by the ideal weight. Specifically, we analyze a trade-off between changes in average energy and changes in…

Quantum Physics · Physics 2022-07-20 Marcin Łobejko

In recent years, the energy-water nexus literature has recognized that the electricity and water infrastructure that enable the production, distribution, and consumption of these two commodities is fundamentally intertwined. Electric power…

Systems and Control · Electrical Eng. & Systems 2019-08-29 Steffi O. Muhanji , Amro M. Farid

This paper investigates portfolio selection within a continuous-time financial market with regime-switching and beliefs-dependent utilities. The market coefficients and the investor's utility function both depend on the market regime, which…

Optimization and Control · Mathematics 2024-10-23 Xiaochen Chen , Guohui Guan , Zongxia Liang