{"about":{"site":"https://codewithpapers.app","non_affiliation":"Code with Papers and Syntology are not affiliated with, endorsed by, or sponsored by Papers with Code, Meta, or the pwc-archive mirror.","licence":"CC BY-SA 4.0","licence_url":"https://creativecommons.org/licenses/by-sa/4.0/legalcode","attribution":"https://codewithpapers.app/attribution","modified":"archive material modified by Syntology; see the attribution page"},"url":"/paper/risk-and-variance-aware-electricity-pricing","title":"Risk- and Variance-Aware Electricity Pricing","arxiv_id":"1910.05409","date":"2020-03-27","proceeding":null,"authors":[],"abstract":"The roll-out of stochastic renewable energy sources (RES) undermines the\nefficiency of power system and market operations. This paper proposes an\napproach to derive electricity prices that internalize RES stochasticity. We\nleverage a chance-constrained AC Optimal Power Flow (CC AC-OPF) model, which is\nrobust against RES uncertainty and is also aware of the resulting variability\n(variance) of the system state variables. Using conic duality theory, we derive\nand analyze energy and balancing reserve prices that internalize the risk of\nsystem limit violations and the variance of system state variables. We compare\nthe risk- and variance-aware prices on the IEEE 118-node testbed.","url_abs":"http://arxiv.org/abs/1910.05409v2","url_pdf":"http://arxiv.org/pdf/1910.05409v2.pdf","source":{"archive":"pwc-archive (Hugging Face), CC BY-SA 4.0","snapshot":"2025-07-28","licence_url":"https://creativecommons.org/licenses/by-sa/4.0/legalcode","row_kind":"abstracts"},"code_links":[{"paper_slug":"risk-and-variance-aware-electricity-pricing","repo_url":"https://github.com/korpuskel91/acccopf_pricing","is_official":1,"mentioned_in_paper":1,"mentioned_in_github":0,"framework":"none","reach":null}],"tasks":[],"methods":[],"datasets_introduced":[],"methods_introduced":[],"results":[],"syntology":{"atlas_url":null,"mcp":null,"developers":"https://syntology.ai/developers"},"arxiv_metadata":null,"syntology_extracted_results":null}