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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

An existing challenge in power systems is the implementation of optimal demand management through dynamic pricing. This paper encompasses the design, analysis and implementation of a novel on-line pricing scheme based on coalitional game…

Optimization and Control · Mathematics 2024-07-16 Fernando Genis Mendoza , Pablo R Baldivieso Monasterios , Dario Bauso , George Konstantopoulos

The rapid growth of weather-dependent renewable generation increases price volatility and imbalance penalty risk in power markets, creating the need for advanced quantitative trading strategies. We develop a data-driven continuous-time…

Mathematical Finance · Quantitative Finance 2026-05-01 Chiheb Ben Hammouda , Michael Samet , Raúl Tempone

We propose a static equilibrium model for limit order book where profit-maximizing investors receive an information signal regarding the liquidation value of the asset and execute via a competitive dealer with random initial inventory, who…

Trading and Market Microstructure · Quantitative Finance 2020-03-11 Umut Çetin , Henri Waelbroeck

We study price formation in intraday electricity markets in the presence of intermittent renewable generation. We consider the setting where a major producer may interact strategically with a large number of small producers. Using…

Pricing of Securities · Quantitative Finance 2020-11-17 Olivier Féron , Peter Tankov , Laura Tinsi

The increase of renewables in the grid and the volatility of the load create uncertainties in the day-ahead prices of electricity markets. Adaptive robust optimization (ARO) and stochastic optimization have been used to make commitment and…

Optimization and Control · Mathematics 2023-09-18 Dimitris Bertsimas , Angelos G. Koulouras

Reliable forecasting of prosumer flexibility is critical for demand response aggregators participating in frequency controlled ancillary services market, where strict reliability requirements such as the P90 standard are enforced. Limited…

Systems and Control · Electrical Eng. & Systems 2026-01-22 Yogesh Pipada Sunil Kumar , S. Ali Pourmousavi , Jon A. R. Liisberg , Julian Lesmos-Vinasco

This paper proposes a forecast-centric adaptive learning model that engages with the past studies on the order book and high-frequency data, with applications to hypothesis testing. In line with the past literature, we produce brackets of…

Statistical Finance · Quantitative Finance 2021-03-02 Parley Ruogu Yang

Renewable energy brings huge uncertainties to the power system, which challenges the traditional power system operation with limited flexible resources. One promising solution is to introduce dynamic pricing to more consumers, which, if…

Systems and Control · Electrical Eng. & Systems 2019-11-19 Jiaman Wu , Zhiqi Wang , Yang Yu , Chenye Wu

This paper presents a methodology for strategic day-ahead planning that uses a combination of deep learning and optimization. A noise-driven recurrent neural network structure is proposed for forecasting electricity prices and local inflow…

Optimization and Control · Mathematics 2021-11-04 Martin Biel

This paper shows that in suitable markets, even with out-of-equilibrium trade allowed, a simple price update rule leads to rapid convergence toward the equilibrium. In particular, this paper considers a Fisher market repeated over an…

Computer Science and Game Theory · Computer Science 2010-12-13 Richard Cole , Lisa Fleischer , Ashish Rastogi

Most modern financial markets use a continuous double auction mechanism to store and match orders and facilitate trading. In this paper we develop a microscopic dynamical statistical model for the continuous double auction under the…

Statistical Mechanics · Physics 2009-11-07 Eric Smith , J. Doyne Farmer , Laszlo Gillemot , Supriya Krishnamurthy

Incentive-driven computing resource sharing is crucial for meeting the ever-growing demands of emerging mobile applications. Although conventional spot trading offers a solution, it frequently leads to excessive overhead due to the need for…

Networking and Internet Architecture · Computer Science 2025-10-24 Houyi Qi , Minghui Liwang , Liqun Fu , Xianbin Wang , Huaiyu Dai , Xiaoyu Xia

In an electric power system, demand fluctuations may result in significant ancillary cost to suppliers. Furthermore, in the near future, deep penetration of volatile renewable electricity generation is expected to exacerbate the variability…

Optimization and Control · Mathematics 2012-07-13 John N. Tsitsiklis , Yunjian Xu

With the increasing penetration of Inverter-Based Resources (IBRs), power system stability constraints must be incorporated into the operational framework, transforming it into stability-constrained optimization. Currently, there exist…

Systems and Control · Electrical Eng. & Systems 2024-11-19 Wangkun Xu , Zhongda Chu , Florin Capitanescu , Fei Teng

We consider the problem of optimal trading for a power producer in the context of intraday electricity markets. The aim is to minimize the imbalance cost induced by the random residual demand in electricity, i.e. the consumption from the…

Trading and Market Microstructure · Quantitative Finance 2018-11-27 René Aïd , Pierre Gruet , Huyên Pham

The European power grid can be divided into several market areas where the price of electricity is determined in a day-ahead auction. Market participants can provide continuous hourly bid curves and combinatorial bids with associated…

Optimization and Control · Mathematics 2015-03-02 Alexander Martin , Johannes C. Müller , Sebastian Pokutta

Sales forecasting plays a prominent role in business planning and business strategy. The value and importance of advance information is a cornerstone of planning activity, and a well-set forecast goal can guide sale-force more efficiently.…

Machine Learning · Statistics 2017-05-17 Qiuping Xu , Vikas Sharma

Constant price impact functions, much used in financial literature, are shown to give rise to paradoxical outcomes since they do not allow for proper predictability removal: for instance the exploitation of a single large trade whose size…

Physics and Society · Physics 2010-01-27 Damien Challet

In this paper we study the so-called minimum income condition order, which is used in some day-ahead electricity power exchanges to represent the production-related costs of generating units. This order belongs to the family of complex…

General Economics · Economics 2022-09-02 Dávid Csercsik
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