Strengthening Retailer Resilience: Robust Optimization for Profit Maximization and Risk Mitigation in the Nordic Electricity Market

Strengthening Retailer Resilience: Robust Optimization for Profit Maximization and Risk Mitigation in the Nordic Electricity Market | Authorea try { document.documentElement.classList.add('js'); } catch (e) { } var _gaq = _gaq || []; _gaq.push(['_setAccount', 'G-8VDV14Y67G']); _gaq.push(['_trackPageview']); (function() { var ga = document.createElement('script'); ga.type = 'text/javascript'; ga.async = true; ga.src = ('https:' == document.location.protocol ? 'https://ssl' : 'http://www') + '.google-analytics.com/ga.js'; var s = document.getElementsByTagName('script')[0]; s.parentNode.insertBefore(ga, s); })(); Skip to main content Preprints Collections Wiley Open Research IET Open Research Ecological Society of Japan All Collections About About Authorea FAQs Contact Us Quick Search anywhere Search for preprint articles, keywords, etc. Search Search ADVANCED SEARCH SCROLL This is a preprint and has not been peer reviewed. Data may be preliminary. 3 February 2026 V1 Latest version Share on Strengthening Retailer Resilience: Robust Optimization for Profit Maximization and Risk Mitigation in the Nordic Electricity Market Authors : Reza Khalili 0000-0001-7648-8506 , Reza Gharibi , Behrooz Vahidi 0000-0002-9430-9468 , Amin Foroughi , Rahman Dashti , and Mousa Marzband 0000-0003-3482-609X [email protected] Authors Info & Affiliations https://doi.org/10.22541/au.177008245.58045008/v1 112 views 63 downloads Contents Abstract Supplementary Material Information & Authors Metrics & Citations View Options References Figures Tables Media Share Abstract Due to environmental and economic incentives in the electricity sector, various energy sources are transitioning toward electrification more rapidly than ever before. Consequently, the electricity market serves as the economic foundation for diverse energy types in the future, introducing greater complexity to market modeling. This complexity necessitates accurate and holistic electricity market modeling that integrates multiple sources of uncertainty and risk. Furthermore, addressing these uncertainties and risks requires practical methods for the decision-making process. In this paper, supply, demand, and regulation market uncertainties are modeled through residual supply curve scenarios, price elasticity scenarios, and price difference scenarios, respectively. Additionally, Conditional Value at Risk (CVaR) and Independent System Operator (ISO) penalty risks are considered. Finally, a robust-stochastic model is developed to hedge risks and enhance retailers’ decision-making capabilities. As a result, energy prices are reduced significantly, and the effects of different demand collaboration levels in Demand Response Programs (DRP) are demonstrated. Supplementary Material File (21jan2026.tex) Download 94.52 KB File (main.pdf) Download 1.97 MB File (references.bib) Download 13.04 KB Information & Authors Information Version history V1 Version 1 03 February 2026 Copyright This work is licensed under a Non Exclusive No Reuse License. Keywords demand side management electricity supply industry pricing risk analysis supply and demand uncertainty handling Authors Affiliations Reza Khalili 0000-0001-7648-8506 Stony Brook University View all articles by this author Reza Gharibi Amirkabir University of Technology View all articles by this author Behrooz Vahidi 0000-0002-9430-9468 Amirkabir University of Technology View all articles by this author Amin Foroughi Amirkabir University of Technology View all articles by this author Rahman Dashti Faculty of Intelligent Systems Engineering and Data Science View all articles by this author Mousa Marzband 0000-0003-3482-609X [email protected] King Abdulaziz University View all articles by this author Metrics & Citations Metrics Article Usage 112 views 63 downloads .FvxKWukQNSOunydq8rnd { width: 100px; } Citations Download citation Reza Khalili, Reza Gharibi, Behrooz Vahidi, et al. Strengthening Retailer Resilience: Robust Optimization for Profit Maximization and Risk Mitigation in the Nordic Electricity Market. Authorea . 03 February 2026. DOI: https://doi.org/10.22541/au.177008245.58045008/v1 If you have the appropriate software installed, you can download article citation data to the citation manager of your choice. Simply select your manager software from the list below and click Download. For more information or tips please see 'Downloading to a citation manager' in the Help menu . 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