IDEAS home Printed from https://ideas.repec.org/a/eee/renene/v260y2026ics0960148125026801.html

Financially inspired methodologies for risk management in electricity markets

Author

Listed:
  • Ramirez, Andres F.
  • Lamadrid L., Alberto J.

Abstract

We present a framework to determine the risk of assets in electricity systems. We train machine learning and estimation models with optimal outputs from simulating Security Constrained Economic Dispatch (SCED) and Security Constraint Unit Commitment (SCUC). The operational score we present provides a quantitative measure of the likelihood that a generating unit will cause imbalances in the grid due to variability and uncertainty. We illustrate our methodology using real world data from the New York Independent System Operator (NYISO).

Suggested Citation

  • Ramirez, Andres F. & Lamadrid L., Alberto J., 2026. "Financially inspired methodologies for risk management in electricity markets," Renewable Energy, Elsevier, vol. 260(C).
    • Handle: RePEc:eee:renene:v:260:y:2026:i:c:s0960148125026801
    DOI: 10.1016/j.renene.2025.125016
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0960148125026801
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.renene.2025.125016?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    More about this item

    Keywords

    ;
    ;
    ;

    JEL classification:

    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:renene:v:260:y:2026:i:c:s0960148125026801. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/renewable-energy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.