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Approximation of supply curves

2023/10/24 by Andrés M. Alonso, Alonso, Andres M., Zehang Li +1
Engineering · #Applications (stat.AP) #Electric Power System Optimization #FOS: Computer and information sciences #FOS: Economics and business #Methodology (stat.ME) #Pricing of Securities (q-fin.PR) #Statistical Finance (q-fin.ST)

paper · pdf · doi:10.48550/arxiv.2311.10738

openalex publication_date 2023/10/24 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/28

Abstract

In this note, we illustrate the computation of the approximation of the supply curves using a one-step basis. We derive the expression for the L2 approximation and propose a procedure for the selection of nodes of the approximation. We illustrate the use of this approach with three large sets of bid curves from European electricity markets.

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