Electricity Markets, Stochastic Storage Optimization

Energy Markets

The energy industry has seen significant changes in recent years due to factors like liberalization, regulation, and the growth of renewable energy. Challenges such as market competition, sector consolidation, security of supply, renewable energy integration, and energy efficiency targets have emerged. These changes have major implications for energy companies and regulators, requiring further evolution of business models and organizational structures.

We use several special-purpose model to address the different problem dimensions:

  • Game-theoretic model of energy markets (electricity, gas, etc.) in Switzerland and surrounding countries by using a Nash-Cournot Conjectural Variation approach. BEM
  • Risk-averse stochastic equilibrium models to model the incompleteness of electricity markets and trading of hedging assets Maestro
  • Multi-stage stochastic programming methods to optimize the dispatch of pumped-storage energy units against exogenous electricity prices. Dispatch