Working paper series

Methodology, in writing.

Every claim our products make is backed by a paper. Methodology, convergence proofs and reproducible case studies — published openly. Comments and challenges to christopher@compoundingenergy.com.

Flagship paper · CE-WP-2026-01

Cannibalisation as a fixed point.

Revenue forecasting for battery energy storage in liberalised electricity markets. The mathematical backbone of CE BESS Arbitrage and the foundation paper for the Compounding Energy stack.

Published papers

The series so far.

The paper library is currently closed. Compounding Energy is in private beta. Working papers are shared by invitation only with academics, system operators, regulators and prospective counterparties. If you have been given an access passphrase, enter it below. Otherwise, please request access.
CE-WP-2026-01 Working paper · v0.1 BESS · June 2026 BESS · live

Cannibalisation as a fixed point: revenue forecasting for battery energy storage in liberalised electricity markets.

Variational-inequality formulation of the BESS cannibalisation equilibrium; Krasnoselski–Mann convergence theorem; reproducible stylised GB case study quantifying the price-taker bias at 100–300% (2-hour) and 200–800% (4-hour) at NESO 2030 fleet penetrations. ~22 pp.

CE-WP-2026-02 Working paper · v0.1 BESS · June 2026 BESS · live

Five-product co-optimisation of GB BESS revenue stacks: a stochastic stack model.

Extends CE-WP-2026-01 from wholesale-only to the full five-product GB stack — energy arbitrage plus DC-L, DC-H, DR-L and DR-H. Per-product fleet commitment vectors, product-specific price-formation operators, and a single state-of-charge-coupled dispatch LP that allocates the battery across products simultaneously. Existence and Krasnoselski–Mann convergence under standard supply-curve and ancillary-clearing assumptions. Validated against published NGESO settlement data for the 2024–2025 GB BESS fleet. Headline finding: single-product naive sums overstate equilibrium fleet revenue by 35–90% at projected 2030 GB BESS penetration. ~10 pp.

CE-WP-2026-03 Working paper · v1 · June 2026 CENovaSage core

Stabilised Benders decomposition with embedded N-1 contingency cuts: a scalable framework for security-constrained stochastic capacity expansion.

Decomposition framework retaining nodal resolution, multi-stage stochastic structure and full N-1 security at GB scale. Combines Benders with Magnanti–Wong cut selection, level-bundle stabilisation, and an N-1 separation oracle producing contingency-aware optimality cuts on demand. Finite-convergence proofs for the integer master, geometric-rate bounds for the continuous master. Reproducible 30-zone GB case study. ~14 pp.

CE-WP-2026-04 Working paper · v1 · June 2026 CENovaSage / CEDeris

Pruned ReLU surrogates: embedding non-linear physics into MILP-based energy system optimisation with explicit error bounds.

Unified framework for embedding non-linear physical models — aerodynamic wake interactions, distribution-feeder hosting capacity, conversion-efficiency surfaces — into MILPs via ReLU surrogates. Interval-bound propagation tightens per-neuron big-M values, often by orders of magnitude. Provably always-active and always-inactive neurons are pruned and replaced by their linear or constant equivalents. Worked 3×3 offshore wind farm case study with Jensen wake interaction.

CE-NOTE-2025-03 Position paper · v1.0 Principles · August 2025 Methodology

Training equals production: why we never train on synthetic hindcasts.

Most operational energy-modelling stacks are trained against synthetic hindcasts — re-runs of the upstream weather, price or load model on historical inputs, with realised conditions hand-corrected back into training data. The result is calibration against a reconstruction, not against what production sees. Compounding Energy's position is the opposite: every shadow forecast customers see is itself the next training cycle's input. Training and production share an artefact, not a copy. This note explains why the discipline matters, what it buys in calibration drift, and what it costs to maintain. ~4 pp.

Roadmap

Forthcoming papers.

Each paper anchors a product in active build. CE-WP-2026-01 through 04 will be revised to v2 as journal-targeted versions (likely IEEE Transactions on Power Systems or Applied Energy) once external feedback is incorporated, expected late 2026 / early 2027.