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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

The recent advent of smart meters has led to large micro-level datasets. For the first time, the electricity consumption at individual sites is available on a near real-time basis. Efficient management of energy resources, electric…

Applications · Statistics 2014-09-10 Siddharth Arora , James W. Taylor

Electricity price forecasting (EPF) is a branch of forecasting on the interface of electrical engineering, statistics, computer science, and finance, which focuses on predicting prices in wholesale electricity markets for a whole spectrum…

Statistical Finance · Quantitative Finance 2022-04-26 Arkadiusz Jędrzejewski , Jesus Lago , Grzegorz Marcjasz , Rafał Weron

This paper proposes a market mechanism for multi-interval electricity markets with generator and storage participants. Drawing ideas from supply function bidding, we introduce a novel bid structure for storage participation that allows…

Optimization and Control · Mathematics 2021-10-18 Rajni Kant Bansal , Pengcheng You , Dennice F. Gayme , Enrique Mallada

This paper develops learning-augmented algorithms for energy trading in volatile electricity markets. The basic problem is to sell (or buy) $k$ units of energy for the highest revenue (lowest cost) over uncertain time-varying prices, which…

Machine Learning · Computer Science 2024-02-29 Russell Lee , Bo Sun , Mohammad Hajiesmaili , John C. S. Lui

Conformal prediction is a popular method to construct prediction intervals with marginal coverage guarantees from black-box machine learning models. In applications with potentially high-impact events, such as flooding or financial crises,…

Methodology · Statistics 2026-04-02 Olivier C. Pasche , Henry Lam , Sebastian Engelke

In various applications, probabilistic forecasts are required to quantify the inherent uncertainty associated with the forecast. However, numerous modern forecasting methods are still designed to create deterministic forecasts. Transforming…

Machine Learning · Computer Science 2023-02-06 Kaleb Phipps , Benedikt Heidrich , Marian Turowski , Moritz Wittig , Ralf Mikut , Veit Hagenmeyer

Highly accurate interval forecasting of electricity demand is fundamental to the success of reducing the risk when making power system planning and operational decisions by providing a range rather than point estimation. In this study, a…

Machine Learning · Computer Science 2014-06-17 Tao Xiong , Yukun Bao , Zhongyi Hu

The intraday (ID) electricity market has received an increasing attention in the recent EU electricity-market discussions. This is partly because the uncertainty in the underlying power system is growing and the ID market provides an…

Systems and Control · Electrical Eng. & Systems 2022-03-14 Saeed Mohammadi , Mohammad Reza Hesamzadeh

Operational decisions relying on predictive distributions of electricity prices can result in significantly higher profits compared to those based solely on point forecasts. However, the majority of models developed in both academic and…

Statistical Finance · Quantitative Finance 2024-10-08 Arkadiusz Lipiecki , Bartosz Uniejewski , Rafał Weron

Time-varying pricing tariffs incentivize consumers to shift their electricity demand and reduce costs, but may increase the energy burden for consumers with limited response capability. The utility must thus balance affordability and…

Machine Learning · Computer Science 2023-07-31 Liudong Chen , Bolun Xu

The interactions of the natural gas (NG) network and the electricity system are increased by using gas-fired generation units, which use NG to produce electricity. There are various uncertainty sources such as the forced outage of…

Systems and Control · Electrical Eng. & Systems 2019-12-03 Farnaz Sohrabi , Farkhondeh Jabari , Behnam Mohammadi-Ivatloo , Alireza Soroudi

Accurately forecasting electricity price volatility is crucial for effective risk management and decision-making. Traditional forecasting models often fall short in capturing the complex, non-linear dynamics of electricity markets,…

Computational Engineering, Finance, and Science · Computer Science 2025-05-20 Haochen Xue , Chenghao Liu , Chong Zhang , Yuxuan Chen , Angxiao Zong , Zhaodong Wu , Yulong Li , Jiayi Liu , Kaiyu Liang , Zhixiang Lu , Ruobing Li , Jionglong Su

Electricity markets are under increasing pressure to maintain reliability amidst rising renewable penetration, demand variability, and occasional price shocks. Traditional capacity market designs often fall short in addressing this by…

Systems and Control · Electrical Eng. & Systems 2025-12-16 Millend Roy , Agostino Capponi , Vladimir Pyltsov , Yinbo Hu , Vijay Modi

Weather, technological and regulatory uncertainties expose actors in highly renewable electricity markets to substantial price and volume risks. Two-way Contracts for Difference (CfDs) can mitigate these risks. They stipulate payments…

General Economics · Economics 2025-12-22 Silke Johanndeiter , Jonas Finke , Justus Heuer

Prediction markets rely on liquidity to convert trades into informative prices, yet existing mechanisms fix liquidity ex ante. This restriction enforces a static trade-off between price responsiveness and worst-case loss despite inherently…

Computer Science and Game Theory · Computer Science 2026-05-12 Enrique Nueve , Bao Nguyen , Rafael Frongillo , Bo Waggoner

Electricity price forecasts play a crucial role in making key business decisions within the electricity markets. A focal point in this domain are probabilistic predictions, which delineate future price values in a more comprehensive manner…

Machine Learning · Computer Science 2025-01-22 Grzegorz Zakrzewski , Kacper Skonieczka , Mikołaj Małkiński , Jacek Mańdziuk

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

Classical time series models have serious difficulties in modeling and forecasting the enormous fluctuations of electricity spot prices. Markov regime switch models belong to the most often used models in the electricity literature. These…

Applications · Statistics 2013-12-02 Dominik Liebl

Prediction markets are often described as mechanisms that ``aggregate information'' into prices, yet the mapping from dispersed private information to observed market histories is typically noisy, endogenous, and shaped by heterogeneous and…

Mathematical Finance · Quantitative Finance 2026-01-28 Juan Pablo Madrigal-Cianci , Camilo Monsalve Maya , Lachlan Breakey