Energy generation from intermittent renewable sources introduces additional variability into electrical systems, resulting in a higher cost of balancing against the increased variabilities. Ways to balance demand and supply for electricity include using flexible generation resources, storage...

We study supply function competition among conventional power generators with different levels of flexibility. Inflexible generators commit production before uncertainties are realized, while flexible generators can adjust their production after uncertainties are realized. Both types of...

We model uniform and discriminatory auctions in wholesale electricity markets. High variability of electricity prices is often explained by exogenous economic factors. We, however, show that it can result endogenously from suppliers' strategic bidding, and that the connection between demand and...