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In wholesale electricity markets, prices fluctuate widely from hour to hour and electricity generators price-hedge their output using longer-term contracts, such as monthly base futures. Consequently, the incentives they face to drive up…

General Economics · Economics 2025-06-05 Alice Lixuan Xu , Jorge Sánchez Canales , Chiara Fusar Bassini , Lynn H. Kaack , Lion Hirth

With the rapid development of electricity markets, price volatility has significantly increased, making accurate forecasting crucial for power system operations and market decisions. Traditional linear models cannot capture the complex…

Machine Learning · Computer Science 2025-12-02 Xuanyi Zhao , Jiawen Ding , Xueting Huang , Yibo Zhang

This paper addresses the question of how much to bid to maximize the profit when trading in two electricity markets: the hourly Day-Ahead Auction and the quarter-hourly Intraday Auction. For optimal coordinated bidding many price scenarios…

Statistical Finance · Quantitative Finance 2026-01-27 Michał Narajewski , Florian Ziel

The participation of electric vehicle (EV) aggregators in real-time electricity markets offers promising revenue opportunities through price-responsive energy arbitrage. A central challenge in economic bidding lies in quantifying the…

Optimization and Control · Mathematics 2025-10-02 Zhen Zhu , Hongcai Zhang , Yonghua Song

Ensemble weather forecasts based on multiple runs of numerical weather prediction models typically show systematic errors and require post-processing to obtain reliable forecasts. Accurately modeling multivariate dependencies is crucial in…

Atmospheric and Oceanic Physics · Physics 2024-02-02 Jieyu Chen , Tim Janke , Florian Steinke , Sebastian Lerch

Users can now give back energies to the grid using distributed resources. Proper incentive mechanisms are required for such users, also known as prosumers, in order to maximize the sell-back amount while maintaining the retailer's profit.…

Optimization and Control · Mathematics 2022-03-14 Diptangshu Sen , Arnob Ghosh

Wholesale electricity markets are increasingly integrated via high voltage interconnectors, and inter-regional trade in electricity is growing. To model this, we consider a spatial equilibrium model of price formation, where constraints on…

Econometrics · Economics 2018-04-24 Michael Stanley Smith , Thomas S. Shively

We introduce a general, simple, and computationally efficient framework for predicting day-ahead supply and demand merit-order curves, from which both point and probabilistic electricity price forecasts can be derived. We conduct a rigorous…

Applications · Statistics 2026-01-12 Guillaume Koechlin , Filippo Bovera , Piercesare Secchi

In finance, the weak form of the Efficient Market Hypothesis asserts that historic stock price and volume data cannot inform predictions of future prices. In this paper we show that, to the contrary, future intra-day stock prices could be…

Trading and Market Microstructure · Quantitative Finance 2019-08-23 David Byrd , Tucker Hybinette Balch

Accurate electricity price forecasting (EPF) is crucial for effective decision-making in power trading on the spot market. While recent advances in generative artificial intelligence (GenAI) and pre-trained large language models (LLMs) have…

Machine Learning · Computer Science 2025-08-21 Timothée Hornek Amir Sartipi , Igor Tchappi , Gilbert Fridgen

Accurate probabilistic forecasting of intraday electricity prices is critical for market participants to inform trading decisions. Existing studies rely on specific domain features, such as Volume-Weighted Average Price (VWAP) and the last…

Computational Finance · Quantitative Finance 2026-02-17 Runyao Yu , Ruochen Wu , Yongsheng Han , Jochen L. Cremer

In this paper, a multivariate constrained robust M-regression (MCRM) method is developed to estimate shaping coefficients for electricity forward prices. An important benefit of the new method is that model arbitrage can be ruled out at an…

Applications · Statistics 2018-06-27 Peter Leoni , Pieter Segaert , Sven Serneels , Tim Verdonck

Researchers and electricity sector practitioners frequently require the supply curve of electricity markets and the price elasticity of supply for purposes such as price forecasting, policy analyses or market power assessment. It is common…

Probabilistic intraday electricity price forecasting is becoming increasingly important for short-term power-system operation. With increasing renewable generation, demand-side flexibility, and storage assets, market participants need to…

Computational Finance · Quantitative Finance 2026-05-12 Runyao Yu , Yuchen Tao , Fabian Leimgruber , Tara Esterl , Jochen Stiasny , Derek W. Bunn , Qingsong Wen , Hongye Guo , Jochen L. Cremer

Accurate mid-term (weeks to one year) hourly electricity load forecasts are essential for strategic decision-making in power plant operation, ensuring supply security and grid stability, planning and building energy storage systems, and…

Applications · Statistics 2025-05-01 Monika Zimmermann , Florian Ziel

For joint inference over multiple variables, a variety of structured prediction techniques have been developed to model correlations among variables and thereby improve predictions. However, many classical approaches suffer from one of two…

Machine Learning · Computer Science 2020-01-07 Colin Graber , Alexander Schwing

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

Precise probabilistic forecasts are fundamental for energy risk management, and there is a wide range of both statistical and machine learning models for this purpose. Inherent to these probabilistic models is some form of uncertainty…

Machine Learning · Computer Science 2025-10-10 Andreas Lebedev , Abhinav Das , Sven Pappert , Stephan Schlüter

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

The smart grid vision entails advanced information technology and data analytics to enhance the efficiency, sustainability, and economics of the power grid infrastructure. Aligned to this end, modern statistical learning tools are leveraged…

Machine Learning · Statistics 2015-06-17 Vassilis Kekatos , Yu Zhang , Georgios B. Giannakis
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