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Investments into renewable energy are increasing rapidly around the world. Energy system models are able to provide insights into optimal investment capacities and thus are widely used to aid the long-term investment decision-making under…

Optimization and Control · Mathematics 2022-01-06 Ni Wang , Remco A. Verzijlbergh , Petra W. Heijnen , Paulien M. Herder

In this work we investigate the inefficiency of the electricity system with strategic agents. Specifically, we prove that without a proper control the total demand of an inefficient system is at most twice the total demand of the optimal…

Computer Science and Game Theory · Computer Science 2015-09-10 Carlos Barreto , Eduardo Mojica-Nava , Nicanor Quijano

Traditional economic models often rely on fixed assumptions about market dynamics, limiting their ability to capture the complexities and stochastic nature of real-world scenarios. However, reality is more complex and includes noise, making…

Virtual bidding plays an important role in two-settlement electric power markets, as it can reduce discrepancies between day-ahead and real-time markets. Renewable energy penetration increases volatility in electricity prices, making…

Machine Learning · Computer Science 2024-12-03 Xuesong Wang , Sharaf K. Magableh , Oraib Dawaghreh , Caisheng Wang , Jiaxuan Gong , Zhongyang Zhao , Michael H. Liao

The analysis of decision-making process in electricity markets is crucial for understanding and resolving issues related to market manipulation and reduced social welfare. Traditional Multi-Agent Reinforcement Learning (MARL) method can…

Systems and Control · Electrical Eng. & Systems 2024-07-24 Shuyang Zhu , Ziqing Zhu , Linghua Zhu , Yujian Ye , Siqi Bu , Sasa Z. Djokic

Modern AI systems increasingly operate inside markets and institutions where data, behavior, and incentives are endogenous. This paper develops an economic foundation for multi-agent learning by studying a principal-agent interaction in a…

Machine Learning · Statistics 2026-01-08 Nassim Helou

The new technologies emerging in the energy sector pose new requirements for both the regulation and operation of the electricity grid. Revised tariff structures and the introduction of local markets are two approaches that could tackle the…

Systems and Control · Electrical Eng. & Systems 2021-03-19 Bence Suto , Daniel Divenyi

In model-based reinforcement learning, the agent interleaves between model learning and planning. These two components are inextricably intertwined. If the model is not able to provide sensible long-term prediction, the executed planner…

Machine Learning · Statistics 2019-03-19 Nan Rosemary Ke , Amanpreet Singh , Ahmed Touati , Anirudh Goyal , Yoshua Bengio , Devi Parikh , Dhruv Batra

Climate change is a major global challenge today. To assess how policies may lead to mitigation, economists have developed Integrated Assessment Models, however, most of the equilibrium based models have faced heavy critiques. Agent-based…

General Economics · Economics 2023-01-23 Karl Naumann-Woleske

This paper proposes a safe reinforcement learning algorithm for generation bidding decisions and unit maintenance scheduling in a competitive electricity market environment. In this problem, each unit aims to find a bidding strategy that…

Systems and Control · Electrical Eng. & Systems 2021-12-21 Pegah Rokhforoz , Olga Fink

The increase in renewable energy on the consumer side gives place to new dynamics in the energy grids. Participants in a microgrid can produce energy and trade it with their peers (peer-to-peer) with the permission of the energy provider.…

Machine Learning · Computer Science 2022-10-26 Nicolas Avila , Shahad Hardan , Elnura Zhalieva , Moayad Aloqaily , Mohsen Guizani

In power markets, understanding the cost dynamics of electricity generation is crucial. The complexity of price formation in the power system arises from its diverse attributes, such as various generator types, each characterized by its…

Theoretical Economics · Economics 2024-10-22 Shamim Homaei , Simon Roussanaly , Asgeir Tomasgard

Although the specific structures of electricity markets are diverse around the world, they were all conceived on the premise of predictable, controllable generation with nonnegligible marginal costs. Recent changes, specifically, the…

Computer Science and Game Theory · Computer Science 2020-12-10 Orcun Karaca

This paper evaluates the impact of the power extent on price in the electricity market. The competitiveness extent of the electricity market during specific times in a day is considered to achieve this. Then, the effect of competitiveness…

Statistical Finance · Quantitative Finance 2019-07-30 Naser Rostamni , Tarik A. Rashid

This study investigates the short-term forecasting of carbon emissions from electricity generation in the Italian power market. Using hourly data from 2021 to 2023, several statistical models and forecast combination methods are evaluated…

Applications · Statistics 2025-12-19 Pierdomenico Duttilo , Francesco Lisi

We study the interdependence between transportation and power systems considering decentralized renewable generators and electric vehicles (EVs). We formulate the problem in a stochastic multi-agent optimization framework considering the…

Optimization and Control · Mathematics 2021-01-05 Zhaomiao Guo , Fatima Afifah , Junjian Qi , Sina Baghali

Power electronics, a critical component in modern power systems, face several challenges in control design, including model uncertainties, and lengthy and costly design cycles. This paper is aiming to propose a Large Language Models (LLMs)…

Systems and Control · Electrical Eng. & Systems 2024-06-19 Chenggang Cui , Jiaming Liu , Junkang Feng , Peifeng Hui , Amer M. Y. M. Ghias , Chuanlin Zhang

One of the most important goals of the 21st century is to change radically the way our society produces and distributes energy. This broad objective embodies in the smart grid's futuristic vision of a completely decentralized system powered…

Systems and Control · Computer Science 2013-05-20 Nicolas Gensollen , Vincent Gauthier , Michel Marot , Monique Becker

We study systems of interacting reinforced stochastic processes, where agents' decisions evolve under reinforcement, network-mediated interactions, and environmental influences. In competitive environments with irreducible networks, we…

Probability · Mathematics 2025-09-18 Michele Aleandri , Paolo Dai Pra , Ida Germana Minelli

Distributed energy resources (DERs), such as rooftop solar panels, are growing rapidly and are reshaping power systems. To promote DERs, feed-in-tariff (FIT) is usually adopted by utilities to pay DER owners certain fixed rates for…

Systems and Control · Electrical Eng. & Systems 2020-02-24 Zibo Zhao , Andrew L. Liu