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The increasing importance of renewable energy, especially solar and wind power, has led to new forces in the formation of electricity prices. Hence, this paper introduces an econometric model for the hourly time series of electricity prices…

Applications · Statistics 2021-02-02 Florian Ziel , Rick Steinert , Sven Husmann

Liberalization of electricity markets has increasingly created the need for understanding the volatility and correlation structure between electricity and financial markets. This work reveals the existence of structural changes in…

Statistical Finance · Quantitative Finance 2017-08-24 Panagiotis G. Papaioannou , George P. Papaioannou , Kostas Siettos , Akylas Stratigakos , Christos Dikaiakos

We conduct the first rigorous study of electricity price volatility for the full panel of electricity prices across three European generation zones. By interpreting the observed day-ahead prices as local averages of a latent price process…

General Finance · Quantitative Finance 2026-05-14 Thomas K. Kloster , Fred Espen Benth

One important effect of price shocks in the United States has been increased political attention paid to the structure and performance of oil and natural gas markets, along with some governmental support for energy conservation. This paper…

General Finance · Quantitative Finance 2015-02-26 Andrew B. Whitford

Accurate prediction of electricity prices plays an essential role in the electricity market. To reflect the uncertainty of electricity prices, price intervals are predicted. This paper proposes a novel prediction interval construction…

Machine Learning · Computer Science 2025-01-15 Xin Lu

Power grids are moving towards 100% renewable energy source bulk power grids, and the overall dynamics of power system operations and electricity markets are changing. The electricity markets are not only dispatching resources economically…

Machine Learning · Computer Science 2023-09-13 Milan Jain , Xueqing Sun , Sohom Datta , Abhishek Somani

We analyze the interaction between stock prices of big companies in the USA and Germany using Granger Causality. We claim that the increase in pair-wise Granger causality interaction between prices in the times of crisis is the consequence…

Statistical Finance · Quantitative Finance 2022-05-16 Maryam Zamani , Sander Paekivi , Philipp Meyer , Holger Kantz

The electricity industry is heavily implementing smart grid technologies to improve reliability, availability, security, and efficiency. This implementation needs technological advancements, the development of standards and regulations, as…

Machine Learning · Computer Science 2022-10-21 Ankitha Nandipura Prasanna , Priscila Grecov , Angela Dieyu Weng , Christoph Bergmeir

During the last years, statistical physics has received an increasing attention as a framework for the analysis of real complex systems; yet, this is less clear in the case of international political events, partly due to the complexity in…

Physics and Society · Physics 2022-06-08 Massimiliano Zanin , Johann H. Martínez

There are many indicators of energy security. Few measure what really matters -- affordable and reliable energy supply -- and the trade-offs between the two. Reliability is physical, affordability is economic. Russia's latest invasion of…

General Economics · Economics 2023-01-19 Richard S. J. Tol

Security of supply is a common and important concern when integrating renewables in net-zero power systems. Extreme weather affects both demand and supply leading to power system stress; in Europe this stress spreads continentally beyond…

Systems and Control · Electrical Eng. & Systems 2025-08-08 Aleksander Grochowicz , Hannah C. Bloomfield , Marta Victoria

Electricity price forecasting in Europe presents unique challenges due to increasing renewable generation variability, market integration, and the continent's physically interconnected power system. While recent advances in foundation…

Computational Engineering, Finance, and Science · Computer Science 2026-05-12 Runyao Yu , Chenhui Gu , Jochen Stiasny , Qingsong Wen , Wasim Sarwar Dilov , Lianlian Qi , Jochen L. Cremer

Price-based demand response (PBDR) has recently been attributed great economic but also environmental potential. However, the determination of its short-term effects on carbon emissions requires the knowledge of marginal emission factors…

Systems and Control · Electrical Eng. & Systems 2021-05-11 Markus Fleschutz , Markus Bohlayer , Marco Braun , Gregor Henze , Michael D. Murphy

Motivated by the increasing integration among electricity markets, in this paper we propose two different methods to incorporate market integration in electricity price forecasting and to improve the predictive performance. First, we…

Statistical Finance · Quantitative Finance 2017-12-08 Jesus Lago , Fjo De Ridder , Peter Vrancx , Bart De Schutter

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

This paper examines how natural gas supply shocks affect Italian firms' pricing decisions and inflation expectations using quarterly survey data from the Bank of Italy's Survey on Inflation and Growth Expectations (SIGE). We identify…

General Economics · Economics 2025-12-09 Giuseppe Pagano Giorgianni

The paradox of the energy transition is that the low marginal costs of new renewable energy sources (RES) drag electricity prices down and discourage investments in flexible productions that are needed to compensate for the lack of…

Physics and Society · Physics 2018-06-18 Laurent Pagnier , Philippe Jacquod

Modeling power market dynamics is increasingly challenging, as both spatial and temporal imbalances of demand and supply are becoming more pronounced with higher shares of variable renewable energy (VRE). Therefore, a high-resolution…

Systems and Control · Electrical Eng. & Systems 2019-08-28 Ramiz Qussous , Thomas Künzel , Anke Weidlich

The increasing penetration of variable renewable energy and flexible demand technologies, such as electric vehicles and heat pumps, introduces significant uncertainty in power systems, resulting in greater imbalance; defined as the…

Statistical Finance · Quantitative Finance 2025-09-08 Timothée Hornek , Sergio Potenciano Menci , Ivan Pavić

Consumption-based carbon emission measures aim to account for emissions associated with power transmission from distant regions, as opposed to measures which only consider local power generation. Outlining key differences between two…

Physics and Society · Physics 2024-04-10 Mirko Schäfer , Bo Tranberg , Dave Jones , Anke Weidlich