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This paper develops a novel mixed-integer linear programming (MILP) model for optimal participation of battery energy storage systems (BESSs) in the Swedish frequency containment reserve (FCR) markets. The developed model aims to maximize…

Systems and Control · Electrical Eng. & Systems 2024-06-12 Nima Mirzaei Alavijeh , Rahmat Khezri , Mohammadreza Mazidi , David Steen , Le Anh Tuan

In this paper we consider an energy storage optimization problem in finite time in a model with partial information that allows for a changing economic environment. The state process consists of the storage level controlled by the storage…

Mathematical Finance · Quantitative Finance 2016-06-21 Anton A. Shardin , Michaela Szölgyenyi

This work proposes a conformal approach for energy storage arbitrage to control the downside risk arising from imperfect price forecasts. Energy storage arbitrage relies solely on predictions of future market prices, while inaccurate price…

Systems and Control · Electrical Eng. & Systems 2025-12-10 Yiqian Wu , Ming Yi , Bolun Xu , James Anderson

Sharing economy has disrupted many industries. We foresee that electricity storage systems could be the enabler for sharing economy in electricity sector, though its implementation is a delicate task. Unlike in the 2-tier Time-of-Use (ToU)…

Systems and Control · Electrical Eng. & Systems 2019-12-10 Kui Wang , Yang Yu , Chenye Wu

Optimally combining frequency control with self-consumption can increase revenues from battery storage systems installed behind-the-meter. This work presents an optimized control strategy that allows a battery to be used simultaneously for…

Optimization and Control · Mathematics 2018-01-01 Jonas Engels , Bert Claessens , Geert Deconinck

Optimal execution, i.e., the determination of the most cost-effective way to trade volumes in continuous trading sessions, has been a topic of interest in the equity trading world for years. Electricity intraday trading slowly follows this…

Trading and Market Microstructure · Quantitative Finance 2020-10-06 Christopher Kath , Florian Ziel

We consider using a battery storage system simultaneously for peak shaving and frequency regulation through a joint optimization framework which captures battery degradation, operational constraints and uncertainties in customer load and…

Systems and Control · Computer Science 2017-09-06 Yuanyuan Shi , Bolun Xu , Di Wang , Baosen Zhang

In this paper we study the pricing and hedging of structured products in energy markets, such as swing and virtual gas storage, using the exponential utility indifference pricing approach in a general incomplete multivariate market model…

Mathematical Finance · Quantitative Finance 2016-02-23 Giorgia Callegaro , Luciano Campi , Valeria Giusto , Tiziano Vargiolu

Optimal investment in battery energy storage systems, taking into account degradation, sizing and control, is crucial for the deployment of battery storage, of which providing frequency control is one of the major applications. In this…

Systems and Control · Computer Science 2019-04-02 Jonas Engels , Bert Claessens , Geert Deconinck

This letter introduces a method to manage energy storage in electricity grids. Starting from the stochastic characterization of electricity generation and demand, we propose an equation that relates the storage level for every time-step as…

Systems and Control · Computer Science 2016-12-05 Pedro H. J. Nardelli , Hirley Alves

Battery energy storage systems BESSs can provide fast frequency reserves and energy arbitrage in Nordic electricity markets but their limited energy capacity requires accurate revenue forecasts and coordinated bidding across multiple…

Optimization and Control · Mathematics 2025-06-04 Zeenat Hameed , Chresten Traeholt

Electricity price forecasting supports decision-making in energy markets and asset operation. Probabilistic forecasts are increasingly adopted to explicitly quantify uncertainty, typically issued as quantile predictions or ensembles of the…

Statistical Finance · Quantitative Finance 2026-04-22 Simon Hirsch , Florian Ziel

Economic withholding in electricity markets refers to generators bidding higher than their true marginal fuel cost, and is a typical approach to exercising market power. However, existing market designs require storage to design bids…

Systems and Control · Electrical Eng. & Systems 2025-05-20 Xin Qin , Ioannis Lestas , Bolun Xu

Energy storage are strategic participants in electricity markets to arbitrage price differences. Future power system operators must understand and predict strategic storage arbitrage behaviors for market power monitoring and capacity…

Systems and Control · Electrical Eng. & Systems 2024-02-02 Yuexin Bian , Ningkun Zheng , Yang Zheng , Bolun Xu , Yuanyuan Shi

Energy storage can be used for many applications in the Smart Grid such as energy arbitrage, peak demand shaving, power factor correction, energy backup to name a few, and can play a major role at increasing the capacity of power networks…

Systems and Control · Electrical Eng. & Systems 2020-02-12 Md Umar Hashmi , Jose Horta , Diego Kiedanski , Ana Bušić , Daniel Kofman

The rapid growth of battery energy storage in wholesale electricity markets calls for a deeper understanding of storage operators' bidding strategies and their market impacts. This study examines energy storage bidding data from the…

Systems and Control · Electrical Eng. & Systems 2025-01-24 Neal Ma , Ningkun Zheng , Ning Qi , Bolun Xu

Optimal scheduling of batteries has significant potential to reduce electricity costs and to enhance grid resilience. However, effective battery scheduling must account for both physical constraints as well as uncertainties in consumption…

Optimization and Control · Mathematics 2026-04-01 Janik Pinter , Maximilian Beichter , Ralf Mikut , Veit Hagenmeyer , Frederik Zahn

Energy storage shifts energy from off-peak periods to on-peak periods. Unlike conventional generation, storage is duration-limited: the stored energy capacity constrains the duration over which it can supply power. To understand how these…

Systems and Control · Electrical Eng. & Systems 2026-03-17 Daniel Shen , Marija Ilic , John Parsons

Efficient markets are characterised by profit-driven participants continuously refining their positions towards the latest insights. Margins for profit generation are generally small, shaping a difficult landscape for automated trading…

Computational Engineering, Finance, and Science · Computer Science 2025-04-16 Robin Bruneel , Mathijs Schuurmans , Panagiotis Patrinos

With increasingly favorable economics and bundling of different grid services, energy storage systems (ESS) are expected to play a key role in integrating renewable generation. This work considers the coordination of ESS owned by customers…

Optimization and Control · Mathematics 2018-05-31 Sarthak Gupta , Vassilis Kekatos , Walid Saad