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In this article we revisit the classic problem of tatonnement in price formation from a microstructure point of view, reviewing a recent body of theoretical and empirical work explaining how fluctuations in supply and demand are slowly…

Trading and Market Microstructure · Quantitative Finance 2008-12-02 Jean-Philippe Bouchaud , J. Doyne Farmer , Fabrizio Lillo

Probabilistic forecasting in combination with stochastic programming is a key tool for handling the growing uncertainties in future energy systems. Derived from a general stochastic programming formulation for the optimal scheduling and…

Systems and Control · Electrical Eng. & Systems 2022-03-25 Mario Beykirch , Tim Janke , Florian Steinke

Intra-day price variations in financial markets are driven by the sequence of orders, called the order flow, that is submitted at high frequency by traders. This paper introduces a novel application of the Sequence Generative Adversarial…

Statistical Finance · Quantitative Finance 2021-09-29 Ye-Sheen Lim , Denise Gorse

The growing adoption of electric vehicles (EVs) is increasing peak demand in distribution systems, which can threaten grid stability and reduce operational efficiency. Dynamic electricity pricing is a promising means of mitigating these…

Systems and Control · Electrical Eng. & Systems 2026-05-27 Jiarui Yu , Zhiyu He , Wenbin Wang , Colin N. Jones , Florian Dörfler , Hanmin Cai

Maximizing revenue for grid-scale battery energy storage systems in continuous intraday electricity markets requires strategies that are able to seize trading opportunities as soon as new information arrives. This paper introduces and…

Trading and Market Microstructure · Quantitative Finance 2025-08-27 David Schaurecker , David Wozabal , Nils Löhndorf , Thorsten Staake

This paper presents a novel model for simulating and analyzing sparse limit order books (LOBs), with a specific application to the European intraday electricity market. In illiquid markets, characterized by significant gaps between order…

Trading and Market Microstructure · Quantitative Finance 2024-10-10 Philippe Bergault , Enzo Cognéville

Accurate forecasts of electricity spot prices are essential to the daily operational and planning decisions made by power producers and distributors. Typically, point forecasts of these quantities suffice, particularly in the Nord Pool…

Statistical Finance · Quantitative Finance 2018-12-07 Gunnhildur H. Steinbakk , Alex Lenkoski , Ragnar Bang Huseby , Anders Løland , Tor Arne Øigård

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

During the last years, European intraday power markets have gained importance for balancing forecast errors due to the rising volumes of intermittent renewable generation. However, compared to day-ahead markets, the drivers for the intraday…

Statistical Finance · Quantitative Finance 2023-10-06 Simon Hirsch , Florian Ziel

This paper employs machine learning algorithms to forecast German electricity spot market prices. The forecasts utilize in particular bid and ask order book data from the spot market but also fundamental market data like renewable infeed…

Applications · Statistics 2022-09-20 Simon Schnürch , Andreas Wagner

The rising share of volatile renewable generation increases the demand for flexibility in the electricity grid. Flexible capacity can be offered by industrial energy systems through participation on either the continuous intraday,…

Optimization and Control · Mathematics 2022-12-26 Niklas Nolzen , Alissa Ganter , Nils Baumgärtner , Ludger Leenders , André Bardow

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

Financial order flow exhibits a remarkable level of persistence, wherein buy (sell) trades are often followed by subsequent buy (sell) trades over extended periods. This persistence can be attributed to the division and gradual execution of…

Trading and Market Microstructure · Quantitative Finance 2024-05-06 Ioanna-Yvonni Tsaknaki , Fabrizio Lillo , Piero Mazzarisi

Short-term forecasts of energy consumption are invaluable for the operation of energy systems, including low voltage electricity networks. However, network loads are challenging to predict when highly desegregated to small numbers of…

Applications · Statistics 2023-01-10 Ciaran Gilbert , Jethro Browell , Bruce Stephen

Electricity price forecasting (EPF) plays a major role for electricity companies as a fundamental entry for trading decisions or energy management operations. As electricity can not be stored, electricity prices are highly volatile which…

Applications · Statistics 2024-05-27 Grégoire Dutot , Margaux Zaffran , Olivier Féron , Yannig Goude

Accurate intraday forecasts are essential for power system operations, complementing day-ahead forecasts that gradually lose relevance as new information becomes available. This paper introduces a Bayesian updating mechanism that converts…

Applications · Statistics 2026-03-17 Kutay Bölat , Peter Palensky , Simon Tindemans

The growing importance of intraday electricity trading in Europe calls for improved price forecasting and tailored decision-support tools. In this paper, we propose a novel generative neural network model to generate probabilistic path…

Applications · Statistics 2025-06-03 Jieyu Chen , Sebastian Lerch , Melanie Schienle , Tomasz Serafin , Rafał Weron

Managing high-frequency data in a limit order book (LOB) is a complex task that often exceeds the capabilities of conventional time-series forecasting models. Accurately predicting the entire multi-level LOB, beyond just the mid-price, is…

Computational Finance · Quantitative Finance 2024-11-05 Jiwon Jung , Kiseop Lee

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