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We analyze pricing mechanisms in electricity markets with AC power flow equations that define a nonconvex feasible set for the economic dispatch problem. Specifically, we consider two possible pricing schemes. The first among these prices…

Systems and Control · Electrical Eng. & Systems 2021-10-04 Mariola Ndrio , Anna Winnicki , Subhonmesh Bose

Electricity market operators worldwide use mixed-integer linear programming to solve the allocation problem in wholesale electricity markets. Prices are typically determined based on the duals of relaxed versions of this optimization…

Computer Science and Game Theory · Computer Science 2023-12-13 Mete Şeref Ahunbay , Martin Bichler , Teodora Dobos , Johannes Knörr

Despite major advancements in nonlinear programming (NLP) and convex relaxations, most system operators around the world still predominantly use some form of linear programming (LP) approximation of the AC power flow equations. This is…

Optimization and Control · Mathematics 2021-07-19 Sleiman , Mhanna , Pierluigi , Mancarella

We present a linear cutting-plane relaxation approach that rapidly proves tight lower bounds for the Alternating Current Optimal Power Flow Problem (ACOPF). Our method leverages outer-envelope linear cuts for well-known second-order cone…

Optimization and Control · Mathematics 2024-03-15 Daniel Bienstock , Matias Villagra

Real-time hierarchical energy-sharing markets are promising to coordinate large numbers of prosumers. Still, most existing clearing methods rely on linearized or DC power-flow models and do not explicitly handle reactive power or…

Optimization and Control · Mathematics 2026-05-25 Tonghua Liu , Yifan Su , Zhaojian Wang , Feng Liu

We present a pure linear cutting-plane relaxation approach for rapidly proving tight and accurate lower bounds for the Alternating Current Optimal Power Flow Problem (ACOPF) and its multi-period extension with ramping constraints. Our…

Optimization and Control · Mathematics 2024-09-19 Daniel Bienstock , Matias Villagra

The optimal power flow (OPF) problem, which plays a central role in operating electrical networks is considered. The problem is nonconvex and is in fact NP hard. Therefore, designing efficient algorithms of practical relevance is crucial,…

Optimization and Control · Mathematics 2014-08-20 S. Magnússon , P. C. Weeraddana , C. Fischione

Coordination of distributed energy resources is critical for electricity grid management. Although nodal pricing schemes can mitigate congestion and voltage deviations, the resulting prices are not necessarily equitable. In this work, we…

Optimization and Control · Mathematics 2023-12-15 Emmanuel Balogun , Sonia Martin , Anthony Degleris , Ram Rajagopal

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

Optimization problems that involve topology optimization in scenarios with large scale outages, such as post-disaster restoration or public safety power shutoff planning, are very challenging to solve. Using simple power flow…

Systems and Control · Electrical Eng. & Systems 2025-06-04 Noah Rhodes , James Luedkte , Line Roald

We propose a new forward electricity market framework that admits heterogeneous market participants with second-order cone strategy sets, who accurately express the nonlinearities in their costs and constraints through conic bids, and a…

Theoretical Economics · Economics 2022-12-20 Anubhav Ratha , Pierre Pinson , Hélène Le Cadre , Ana Virag , Jalal Kazempour

The evolution of smart microgrid and its demand-response characteristics not only will change the paradigms of the century-old electric grid but also will shape the electricity market. In this new market scenario, once always energy…

Systems and Control · Computer Science 2017-04-24 Mosaddek Hossain Kamal Tushar , Chadi Assi

This paper introduces a computationally efficient comparative approach to classical pricing rules for day-ahead electricity markets, namely Convex Hull Pricing, IP Pricing and European-like market rules, in a Power Exchange setting with…

Optimization and Control · Mathematics 2018-04-03 Mehdi Madani , Carlos Ruiz , Sauleh Siddiqui , Mathieu Van Vyve

This paper presents novel methods to approximate the nonlinear AC optimal power flow (OPF) into tractable linear/quadratic programming (LP/QP) based OPF problems that can be used for power system planning and operation. We derive a linear…

Systems and Control · Computer Science 2019-03-19 Philipp Fortenbacher , Turhan Demiray

Distribution networks are usually multiphase and radial. To facilitate power flow computation and optimization, two semidefinite programming (SDP) relaxations of the optimal power flow problem and a linear approximation of the power flow…

Optimization and Control · Mathematics 2014-06-13 Lingwen Gan , Steven H. Low

We introduce a quadratically-constrained approximation (QCAC) of the AC optimal power flow (AC-OPF) problem. Unlike existing approximations like the DC-OPF, our model does not rely on typical assumptions such as high reactance-to-resistance…

Optimization and Control · Mathematics 2026-01-21 Gonzalo E. Constante-Flores , Can Li

The classical alternating current optimal power flow problem is highly nonconvex and generally hard to solve. Convex relaxations, in particular semidefinite, second-order cone, convex quadratic, and linear relaxations, have recently…

Optimization and Control · Mathematics 2019-08-08 Christian Bingane , Miguel F. Anjos , Sébastien Le Digabel

In this paper we consider a general problem set-up for a wide class of convex and robust distributed optimization problems in peer-to-peer networks. In this set-up convex constraint sets are distributed to the network processors who have to…

Systems and Control · Computer Science 2013-12-02 Mathias Bürger , Giuseppe Notarstefano , Frank Allgöwer

Regulators and utilities have been exploring hourly retail electricity pricing, with several existing programs providing day-ahead hourly pricing schedules. At the same time, customers are deploying distributed energy resources and smart…

Systems and Control · Electrical Eng. & Systems 2025-09-11 Phillippe K. Phanivong , Duncan S. Callaway

Many problems of interest for cyber-physical network systems can be formulated as Mixed Integer Linear Programs in which the constraints are distributed among the agents. In this paper we propose a distributed algorithm to solve this class…

Optimization and Control · Mathematics 2017-12-06 Andrea Testa , Alessandro Rucco , Giuseppe Notarstefano
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