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In smart grid, a home appliance can adjust its power consumption level according to the realtime power price obtained from communication channels. Most studies on smart grid do not consider the cost of communications which cannot be ignored…

Information Theory · Computer Science 2010-03-11 Husheng Li , Robert C. Qiu

A heat kernel approach is proposed for the development of a general, flexible, and mathematically tractable asset pricing framework in finite time. The pricing kernel, giving rise to the price system in an incomplete market, is modelled by…

Pricing of Securities · Quantitative Finance 2013-09-27 Andrea Macrina

We introduce a new and highly tractable structural model for spot and derivative prices in electricity markets. Using a stochastic model of the bid stack, we translate the demand for power and the prices of generating fuels into electricity…

Pricing of Securities · Quantitative Finance 2015-05-27 Rene Carmona , Michael Coulon , Daniel Schwarz

Data centers are becoming a major consumer of electricity on the grid, with cooling accounting for about 40\% of that energy. As electricity prices vary throughout the day and year, there is a need for cooling strategies that adapt to these…

Optimization and Control · Mathematics 2025-09-15 Arash Khojaste , Jonathan Pearce , Golbon Zakeri , Yuanrui Sang

In this paper a unifying energy-based approach is provided to the modeling and stability analysis of power systems coupled with market dynamics. We consider a standard model of the power network with a third-order model for the synchronous…

Optimization and Control · Mathematics 2016-07-28 Tjerk Stegink , Claudio De Persis , Arjan van der Schaft

We provide analytical tools for pricing power options with exotic features (capped or log payoffs, gap options ...) in the framework of exponential L\'evy models driven by one-sided stable or tempered stable processes. Pricing formulas take…

Pricing of Securities · Quantitative Finance 2021-01-20 Jean-Philippe Aguilar

The customer baseline is required to assign rebates to participants in baseline-based demand response (DR) programs. The average baseline method has been widely accepted in practice due to its simplicity and reliability. However, the…

Systems and Control · Electrical Eng. & Systems 2020-11-24 Xiaochu Wang , Wenyuan Tang

We explore the use of deep reinforcement learning to provide strategies for long term scheduling of hydropower production. We consider a use-case where the aim is to optimise the yearly revenue given week-by-week inflows to the reservoir…

Machine Learning · Computer Science 2020-12-14 Signe Riemer-Sorensen , Gjert H. Rosenlund

We study merchant energy production modeled as a compound switching and timing option. The resulting Markov decision process is intractable. State-of-the-art approximate dynamic programming methods applied to realistic instances of this…

Optimization and Control · Mathematics 2020-01-01 Bo Yang , Selvaprabu Nadarajah , Nicola Secomandi

Biomolecular systems like molecular motors or pumps, transcription and translation machinery, and other enzymatic reactions can be described as Markov processes on a suitable network. We show quite generally that in a steady state the…

Statistical Mechanics · Physics 2015-05-01 Andre C. Barato , Udo Seifert

Stochastic processes find applications in modelling systems in a variety of disciplines. A large number of stochastic models considered are Markovian in nature. It is often observed that higher order Markov processes can model the data…

Probability · Mathematics 2021-04-13 Suryadeepto Nag

In the context of the rising share of new energy generation, accurately generating new energy output scenarios is crucial for day-ahead power system scheduling. Deep learning-based scenario generation methods can address this need, but…

Machine Learning · Computer Science 2025-05-20 Changgang Wang , Wei Liu , Yu Cao , Dong Liang , Yang Li , Jingshan Mo

A multi--state life insurance model is naturally described in terms of the intensity matrix of an underlying (time--inhomogeneous) Markov process which describes the dynamics for the states of an insured person. Between and at transitions,…

Probability · Mathematics 2019-05-14 Mogens Bladt , Søren Asmussen , Mogens Steffensen

Using solar power in the process industry can reduce greenhouse gas emissions and make the production process more sustainable. However, the intermittent nature of solar power renders its usage challenging. Building a model to predict…

Systems and Control · Electrical Eng. & Systems 2022-05-17 Yu Yang , Jia Mao , Richard Nguyen , Annas Tohmeh , Hen-Geul Yeh

A method is proposed to reconstruct a cyclic time-inhomogeneous Markov pro- cess from measured data. First, a time-inhomogeneous Markov model is fit to the data, taken here from measurements on a wind turbine. From the time-dependent…

Data Analysis, Statistics and Probability · Physics 2014-06-16 Teresa Scholz , Vitor V. Lopes , Pedro Lind , Frank Raischel

Modeling price risks is crucial for economic decision making in energy markets. Besides the risk of a single price, the dependence structure of multiple prices is often relevant. We therefore propose a generic and easy-to-implement method…

Econometrics · Economics 2023-03-03 Oliver Grothe , Fabian Kächele , Fabian Krüger

In this paper, we study the operational problem of connected hydro power reservoirs which involves sequential decision-making in an uncertain and dynamic environment. The problem is traditionally formulated as a stochastic dynamic program…

Optimization and Control · Mathematics 2022-05-17 Farzaneh Pourahmadi , Trine Krogh Boomsma

Markov automata combine non-determinism, probabilistic branching, and exponentially distributed delays. This compositional variant of continuous-time Markov decision processes is used in reliability engineering, performance evaluation and…

Logic in Computer Science · Computer Science 2017-05-11 Tim Quatmann , Sebastian Junges , Joost-Pieter Katoen

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

The Intergovernmental Panel on Climate Change proposes different mitigation strategies to achieve the net emissions reductions that would be required to follow a pathway that limits global warming to 1.5{\deg}C with no or limited overshoot.…

Systems and Control · Electrical Eng. & Systems 2021-12-10 Jonathan Dumas