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As the share of variable renewable energy sources increases in the electricity mix, new solutions are needed to build a flexible and reliable grid. Energy arbitrage with battery storage systems supports renewable energy integration into the…

最优化与控制 · 数学 2025-12-17 Alban Puech , Gorazd Dimitrov , Claudia D'Ambrosio

We investigate the profitability and risk of energy storage arbitrage in electricity markets under price uncertainty, exploring both robust and chance-constrained optimization approaches. We analyze various uncertainty representations,…

最优化与控制 · 数学 2025-01-16 Yiqian Wu , Bolun Xu , James Anderson

Electricity storage is used for intertemporal price arbitrage and for ancillary services that balance unforeseen supply and demand fluctuations via frequency regulation. We present an optimization model that computes bids for both arbitrage…

最优化与控制 · 数学 2026-05-12 Dirk Lauinger , Luc Coté , Andy Sun

The future power system is increasingly interconnected via both AC and DC interconnectors. These interconnectors establish links between previously decoupled energy markets. In this paper, we propose an optimal multi-market energy storage…

最优化与控制 · 数学 2023-10-03 Md Umar Hashmi , Stephen Hardy , Dirk Van Hertem , Harsha Nagarajan

We formulate the optimal energy arbitrage problem for a piecewise linear cost function for energy storage devices using linear programming (LP). The LP formulation is based on the equivalent minimization of the epigraph. This formulation…

系统与控制 · 电气工程与系统科学 2019-08-19 Md Umar Hashmi , Arpan Mukhopadhyay , Ana Bušić , Jocelyne Elias , Diego Kiedanski

Arbitrage is one important revenue source for energy storage in electricity markets. However, a large amount of storage in the market will impact the energy price and reduce potential revenues. This can lead to strategic behaviors of…

综合金融 · 定量金融 2022-11-17 Dongwei Zhao , Mehdi Jafari , Audun Botterud , Apurba Sakti

The increasing interconnection of power systems through AC and DC links enables energy storage units to access multiple electricity markets yet most existing arbitrage models remain limited to singlemarket participation This gap restricts…

系统与控制 · 电气工程与系统科学 2026-04-09 Md Umar Hashmi , Harsha Nagarajan , Dirk Van Hertem1

The resource quality and the temporal generation pattern of variable renewable energy sources vary significantly across Europe. In this paper spatial distributions of renewable assets are explored which exploit this heterogeneity to lower…

物理与社会 · 物理学 2017-06-05 Emil H. Eriksen , Leon J. Schwenk-Nebbe , Bo Tranberg , Tom Brown , Martin Greiner

European energy markets are decentralized and entail balance responsibility of each market player. This stresses the importance of imbalance management of renewable energy sources (RES), as the imbalance payments can strongly reduce their…

系统与控制 · 电气工程与系统科学 2024-10-10 Petra Draskovic , Ivan Pavic , Karlo Sepetanc , Hrvoje Pandzic

In Electricity markets, illiquidity, transaction costs and market price characteristics prevent managers to replicate exactly contracts. A residual risk is always present and the hedging strategy depends on a risk criterion chosen. We…

计算金融 · 定量金融 2018-08-29 Xavier Warin

Renewable electricity generation has grown significantly across many European power systems, leading to a greener energy mix, but also additional complexity in balancing electricity supply and demand. Unexpected differences between…

系统与控制 · 电气工程与系统科学 2026-05-19 Arnaud Verstraeten , Maria Margarida Mascarenhas , Hussain Kazmi

Efficiently integrating renewable resources into electricity markets is vital for addressing the challenges of matching real-time supply and demand while reducing the significant energy wastage resulting from curtailments. To address this…

机器学习 · 计算机科学 2024-06-21 Ciaran O'Connor , Joseph Collins , Steven Prestwich , Andrea Visentin

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…

综合金融 · 定量金融 2026-05-14 Thomas K. Kloster , Fred Espen Benth

Energy storage resources must consider both price uncertainties and their physical operating characteristics when participating in wholesale electricity markets. This is a challenging problem as electricity prices are highly volatile, and…

机器学习 · 计算机科学 2023-06-02 Yousuf Baker , Ningkun Zheng , Bolun Xu

Reduced installation and operating costs give energy storage systems an opportunity to participate actively and profitably in electricity markets. In addition to providing ancillary services, energy storage systems can also arbitrage…

最优化与控制 · 数学 2017-02-17 Yishen Wang , Yury Dvorkin , Ricardo Fernández-Blanco , Bolun Xu , Daniel S. Kirschen

This paper proposes a risk-averse approach to energy storage price arbitrage, leveraging conformal uncertainty quantification for electricity price predictions. The method addresses the significant challenges posed by the inherent…

最优化与控制 · 数学 2024-12-11 Saud Alghumayjan , Ming Yi , Bolun Xu

In this letter, we address the problem of controlling energy storage systems (ESSs) for arbitrage in real-time electricity markets under price uncertainty. We first formulate this problem as a Markov decision process, and then develop a…

机器学习 · 计算机科学 2019-05-07 Hanchen Xu , Xiao Li , Xiangyu Zhang , Junbo Zhang

We study the optimal control of storage which is used for arbitrage, i.e. for buying a commodity when it is cheap and selling it when it is expensive. Our particular concern is with the management of energy systems, although the results are…

最优化与控制 · 数学 2014-06-17 James Cruise , Richard Gibbens , Stan Zachary

The European power grid can be divided into several market areas where the price of electricity is determined in a day-ahead auction. Market participants can provide continuous hourly bid curves and combinatorial bids with associated…

最优化与控制 · 数学 2015-03-02 Alexander Martin , Johannes C. Müller , Sebastian Pokutta

We characterize profit-maximizing operating strategies, over some time horizon [0,T], for an energy store which is trading in an arbitrage market. Our theory allows for leakage, operating inefficiencies, operating constraints and general…

最优化与控制 · 数学 2014-12-03 Lisa Flatley , Robert S. MacKay , Michael Waterson
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