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Probabilistic electricity price forecasting (PEPF) is subject of increasing interest, following the demand for proper quantification of prediction uncertainty, to support the operation in complex power markets with increasing share of…

Machine Learning · Computer Science 2024-06-11 Alessandro Brusaferri , Andrea Ballarino , Luigi Grossi , Fabrizio Laurini

The fixed-event forecasting setup is common in economic policy. It involves a sequence of forecasts of the same (`fixed') predictand, so that the difficulty of the forecasting problem decreases over time. Fixed-event point forecasts are…

Econometrics · Economics 2024-03-21 Fabian Krüger , Hendrik Plett

Frequency dynamics in power systems reflect active power imbalance in real time, thereby providing an instantaneous signal to inform electricity pricing. However, existing real-time markets operate on much slower timescales and fail to…

Systems and Control · Electrical Eng. & Systems 2026-04-14 Xinwei Liu , Vladimir Dvorkin

We discuss a concept denoted as Conformal Prediction (CP) in this paper. While initially stemming from the world of machine learning, it was never applied or analyzed in the context of short-term electricity price forecasting. Therefore, we…

Econometrics · Economics 2020-11-17 Christopher Kath , Florian Ziel

Renewable Energy Sources play a key role in smart energy systems. To achieve 100% renewable energy, utilizing the flexibility potential on the demand side becomes the cost-efficient option to balance the grid. However, it is not trivial to…

Systems and Control · Electrical Eng. & Systems 2024-08-01 Seyed Shahabaldin Tohidi , Henrik Madsen , Davide Calì , Tobias K. S. Ritschel

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

Traditional electric energy markets do not explicitly model generator contingencies. To improve the representation of resources and to enhance the modeling of uncertainty, existing markets are moving in the direction of including generator…

Systems and Control · Electrical Eng. & Systems 2019-10-08 N. G. Singhal , J. Kwon , K. W. Hedman

We introduce a new and highly tractable structural model for spot and derivative prices in electricity markets. Using a stochastic model of the bid stack, we translate the demand for power and the prices of generating fuels into electricity…

Pricing of Securities · Quantitative Finance 2015-05-27 Rene Carmona , Michael Coulon , Daniel Schwarz

We conduct the first rigorous study of electricity price volatility for the full panel of electricity prices across three European generation zones. By interpreting the observed day-ahead prices as local averages of a latent price process…

General Finance · Quantitative Finance 2026-05-14 Thomas K. Kloster , Fred Espen Benth

With the growing number of forecasting techniques and the increasing significance of forecast-based operation - particularly in the rapidly evolving energy sector - selecting the most effective forecasting model has become a critical task.…

Systems and Control · Electrical Eng. & Systems 2024-10-24 Fabian Backhaus , Karoline Brucke , Peter Ruckdeschel , Sunke Schlüters

This paper proposes an adaptive mechanism for price signal generation using a piecewise linear approximation of a flexibility function with unknown parameters. In this adaptive approach, the price signal is parameterized and the parameters…

Systems and Control · Electrical Eng. & Systems 2024-02-16 Seyed Shahabaldin Tohidi , Henrik Madsen , Georgios Tsaousoglou , Tobias K. S. Ritschel

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

We develop a tractable equilibrium model for price formation in intraday electricity markets in the presence of intermittent renewable generation. Using stochastic control theory, we identify the optimal strategies of agents with market…

Pricing of Securities · Quantitative Finance 2021-07-01 Olivier Féron , Peter Tankov , Laura Tinsi

Electricity market price predictions enable energy market participants to shape their consumption or supply while meeting their economic and environmental objectives. By utilizing the basic properties of the supply-demand matching process…

Applications · Statistics 2019-06-11 Ana Radovanovic , Tommaso Nesti , Bokan Chen

Electricity price prediction plays a vital role in energy storage system (ESS) management. Current prediction models focus on reducing prediction errors but overlook their impact on downstream decision-making. So this paper proposes a…

Machine Learning · Computer Science 2023-05-02 Linwei Sang , Yinliang Xu , Huan Long , Qinran Hu , Hongbin Sun

Renewable electricity generation has grown significantly across many European power systems, leading to a greener energy mix, but also additional complexity in balancing electricity supply and demand. Unexpected differences between…

Systems and Control · Electrical Eng. & Systems 2026-05-19 Arnaud Verstraeten , Maria Margarida Mascarenhas , Hussain Kazmi

In this paper, we formulate a method for minimising the expectation value of the procurement cost of electricity in two popular spot markets: {\it day-ahead} and {\it intra-day}, under the assumption that expectation value of unit prices…

Economics · Quantitative Finance 2023-03-03 Naoya Yamaguchi , Maiya Hori , Yoshinari Ideguchi

Accurate forecasts of electricity prices are crucial for the management of electric power systems and the development of smart applications. European electricity prices have risen substantially and became highly volatile after the Russian…

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

The aim of this paper is to propose a suitable method for constructing prediction intervals for the output of neural network models. To do this, we adapt the extremely randomized trees method originally developed for random forests to…

Machine Learning · Statistics 2021-05-14 Tullio Mancini , Hector Calvo-Pardo , Jose Olmo