Flexibility Trading for Renewable Energy Producers in Intermediate Spot Markets

Wenju Zhuang; Qisheng Huang; Yunpeng Li; Ting Wu; Gaoqi Liang; Costas Courcoubetis

doi:10.1109/PESIM67009.2026.11438338

Flexibility Trading for Renewable Energy Producers in Intermediate Spot Markets

Wenju Zhuang
, Qisheng Huang^*
, Yunpeng Li
, Ting Wu
, Gaoqi Liang
, Costas Courcoubetis

^*Corresponding author for this work

School of Robotics and Advanced Manufacture, Harbin Institute of Technology Shenzhen
The Chinese University of Hong Kong, Shenzhen

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › peer-review

Abstract

The inherent stochasticity and intermittency of renewable generation present significant challenges for Renewable Energy Producers (REPs) in making effective bidding decisions within two-settlement electricity markets. To address this, we introduce an intermediate spot market that operates between the day-ahead and real-time markets. In this framework, we propose flexibility trading, enabling REPs to purchase flexible resources from Flexibility Service Providers (FSPs) after receiving more accurate forecasting information, just before the real-time market. We characterize the competitive equilibrium of the intermediate spot market and prove its social optimality. Our results show that REPs always benefit from participating in flexibility trading with FSPs. Numerical studies further reveal that the REP's profit first increases and then decreases with the capacity of the FSP's flexible resources.

Original language	English
Title of host publication	2026 IEEE PES International Meeting, PES IM 2026
Publisher	Institute of Electrical and Electronics Engineers Inc.
ISBN (Electronic)	9798331566456
DOIs	https://doi.org/10.1109/PESIM67009.2026.11438338
State	Published - 2026
Externally published	Yes
Event	2026 IEEE PES International Meeting, PES IM 2026 - Hong Kong, Hong Kong Duration: 18 Jan 2026 → 21 Jan 2026

Publication series

Name	2026 IEEE PES International Meeting, PES IM 2026

Conference

Conference	2026 IEEE PES International Meeting, PES IM 2026
Country/Territory	Hong Kong
City	Hong Kong
Period	18/01/26 → 21/01/26

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 7 Affordable and Clean Energy

Keywords

Renewable energy producers
electricity markets
flexibility trading
intermediate spot market
social optimal

Access to Document

10.1109/PESIM67009.2026.11438338

Cite this

@inproceedings{b3ec6fbf38574013b62de1a5d484fffb,

title = "Flexibility Trading for Renewable Energy Producers in Intermediate Spot Markets",

abstract = "The inherent stochasticity and intermittency of renewable generation present significant challenges for Renewable Energy Producers (REPs) in making effective bidding decisions within two-settlement electricity markets. To address this, we introduce an intermediate spot market that operates between the day-ahead and real-time markets. In this framework, we propose flexibility trading, enabling REPs to purchase flexible resources from Flexibility Service Providers (FSPs) after receiving more accurate forecasting information, just before the real-time market. We characterize the competitive equilibrium of the intermediate spot market and prove its social optimality. Our results show that REPs always benefit from participating in flexibility trading with FSPs. Numerical studies further reveal that the REP's profit first increases and then decreases with the capacity of the FSP's flexible resources.",

keywords = "Renewable energy producers, electricity markets, flexibility trading, intermediate spot market, social optimal",

author = "Wenju Zhuang and Qisheng Huang and Yunpeng Li and Ting Wu and Gaoqi Liang and Costas Courcoubetis",

note = "Publisher Copyright: {\textcopyright} 2026 IEEE.; 2026 IEEE PES International Meeting, PES IM 2026 ; Conference date: 18-01-2026 Through 21-01-2026",

year = "2026",

doi = "10.1109/PESIM67009.2026.11438338",

language = "英语",

series = "2026 IEEE PES International Meeting, PES IM 2026",

publisher = "Institute of Electrical and Electronics Engineers Inc.",

booktitle = "2026 IEEE PES International Meeting, PES IM 2026",

address = "美国",

}

Zhuang, W, Huang, Q, Li, Y, Wu, T, Liang, G & Courcoubetis, C 2026, Flexibility Trading for Renewable Energy Producers in Intermediate Spot Markets. in 2026 IEEE PES International Meeting, PES IM 2026. 2026 IEEE PES International Meeting, PES IM 2026, Institute of Electrical and Electronics Engineers Inc., 2026 IEEE PES International Meeting, PES IM 2026, Hong Kong, Hong Kong, 18/01/26. https://doi.org/10.1109/PESIM67009.2026.11438338

Flexibility Trading for Renewable Energy Producers in Intermediate Spot Markets. / Zhuang, Wenju; Huang, Qisheng; Li, Yunpeng et al.
2026 IEEE PES International Meeting, PES IM 2026. Institute of Electrical and Electronics Engineers Inc., 2026. (2026 IEEE PES International Meeting, PES IM 2026).

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › peer-review

TY - GEN

T1 - Flexibility Trading for Renewable Energy Producers in Intermediate Spot Markets

AU - Zhuang, Wenju

AU - Huang, Qisheng

AU - Li, Yunpeng

AU - Wu, Ting

AU - Liang, Gaoqi

AU - Courcoubetis, Costas

PY - 2026

Y1 - 2026

N2 - The inherent stochasticity and intermittency of renewable generation present significant challenges for Renewable Energy Producers (REPs) in making effective bidding decisions within two-settlement electricity markets. To address this, we introduce an intermediate spot market that operates between the day-ahead and real-time markets. In this framework, we propose flexibility trading, enabling REPs to purchase flexible resources from Flexibility Service Providers (FSPs) after receiving more accurate forecasting information, just before the real-time market. We characterize the competitive equilibrium of the intermediate spot market and prove its social optimality. Our results show that REPs always benefit from participating in flexibility trading with FSPs. Numerical studies further reveal that the REP's profit first increases and then decreases with the capacity of the FSP's flexible resources.

AB - The inherent stochasticity and intermittency of renewable generation present significant challenges for Renewable Energy Producers (REPs) in making effective bidding decisions within two-settlement electricity markets. To address this, we introduce an intermediate spot market that operates between the day-ahead and real-time markets. In this framework, we propose flexibility trading, enabling REPs to purchase flexible resources from Flexibility Service Providers (FSPs) after receiving more accurate forecasting information, just before the real-time market. We characterize the competitive equilibrium of the intermediate spot market and prove its social optimality. Our results show that REPs always benefit from participating in flexibility trading with FSPs. Numerical studies further reveal that the REP's profit first increases and then decreases with the capacity of the FSP's flexible resources.

KW - Renewable energy producers

KW - electricity markets

KW - flexibility trading

KW - intermediate spot market

KW - social optimal

UR - https://www.scopus.com/pages/publications/105037439224

U2 - 10.1109/PESIM67009.2026.11438338

DO - 10.1109/PESIM67009.2026.11438338

M3 - 会议稿件

AN - SCOPUS:105037439224

T3 - 2026 IEEE PES International Meeting, PES IM 2026

BT - 2026 IEEE PES International Meeting, PES IM 2026

PB - Institute of Electrical and Electronics Engineers Inc.

T2 - 2026 IEEE PES International Meeting, PES IM 2026

Y2 - 18 January 2026 through 21 January 2026

ER -

Flexibility Trading for Renewable Energy Producers in Intermediate Spot Markets

Abstract

Publication series

Conference

UN SDGs

Keywords

Access to Document

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Cite this