Instruct: Identify the main and secondary category of Arxiv papers based on the titles and abstracts
Query: Optimal installation of renewable electricity sources: the case of Italy   Starting from the model in Koch-Vargiolu (2019), we test the real impact of
current renewable installed power in the electricity price in Italy, and assess
how much the renewable installation strategy which was put in place in Italy
deviated from the optimal one obtained from the model in the period 2012--2018.
To do so, we consider the Ornstein-Uhlenbeck (O-U) process, including an
exogenous increasing process influencing the mean reverting term, which is
interpreted as the current renewable installed power. Using real data of
electricity price, photovoltaic and wind energy production from the six main
Italian price zones, we estimate the parameters of the model and obtain
quantitative results, such as the production of photovoltaic energy impacts the
North zone, while wind is significant for Sardinia and the Central North zone
does not present electricity price impact. Then we implement the solution of
the singular optimal control problem of installing renewable power production
devices, in order to maximize the profit of selling the produced energy in the
market net of installation costs. We extend the results of \cite{KV} to the
case when no impact on power price is presented, and to the case when $N$
players can produce electricity by installing renewable power plants. We are
thus able to describe the optimal strategy and compare it with the real
installation strategy that was put in place in Italy.

29
The categories of this paper are: funct-an
31
The categories of this paper are: ao-sci
20
The categories of this paper are: acc-phys
10
The categories of this paper are: q-bio
26
The categories of this paper are: bayes-an
19
The categories of this paper are: eess
34
The categories of this paper are: chem-ph
37
The categories of this paper are: supr-con
11
The categories of this paper are: hep-lat
25
The categories of this paper are: patt-sol
15
The categories of this paper are: nucl-ex
16
The categories of this paper are: stat
5
The categories of this paper are: gr-qc
36
The categories of this paper are: cmp-lg
9
The categories of this paper are: nlin
22
The categories of this paper are: chao-dyn