{"ID":5936934,"CreatedAt":"2026-07-07T03:14:33.014478982Z","UpdatedAt":"2026-07-09T17:35:13.548091312Z","DeletedAt":null,"paper_url":"https://arxiv.org/abs/2607.05372","arxiv_id":"2607.05372","title":"An Analytical Newsvendor Framework for Risk-Averse Energy Storage Capacity Reservation under Non-Normal Uncertainty","abstract":"Energy storage operators often reserve usable capacity before uncertain market opportunities are realized, for example when a day-ahead operator commits capacity for an evening peak-spread or ancillary-service window. Price spikes, renewable forecast errors, activation calls and imbalance penalties can make the decision-relevant opportunity distribution asymmetric and heavy-tailed rather than Gaussian. This paper develops a tri-objective storage-newsvendor framework for this capacity-reservation decision. The model jointly maximizes expected profit, minimizes CVaR tail loss and minimizes maximum regret over candidate non-normal distributions. We derive a critical-fractile expected-profit solution and a finite-scenario convex scalarization that solves the three objectives together. In stylized log-NMVM experiments with matched mean and variance, a moment-matched normal policy over-reserves capacity by up to 1.337 units. In a lognormal policy comparison, the CVaR and maximum-regret policies reduce tail loss and candidate-set regret at the cost of lower expected profit.","short_abstract":"Energy storage operators often reserve usable capacity before uncertain market opportunities are realized, for example when a day-ahead operator commits capacity for an evening peak-spread or ancillary-service window. Price spikes, renewable forecast errors, activation calls and imbalance penalties can make the decisio...","url_abs":"https://arxiv.org/abs/2607.05372","url_pdf":"https://arxiv.org/pdf/2607.05372v1","authors":"[\"Nuerxiati Abudurexiti\"]","published":"2026-07-06T17:49:32Z","proceeding":"math.OC","tasks":"[\"math.OC\"]","methods":"[]","has_code":false}