In recent years energy storage systems (ESSs) have been used widely in most European and American countries
because of their economic and technical benefits. One of their most exciting capabilities is the ability to participate
in deregulated power markets. This paper proposes a hybrid stochastic-robust optimization approach, in
which an ESS owner can engage in energy arbitrage in the day-ahead market (DAM) and provide extra bids and
offers in the real-time market (RTM) to increase his profit. Stochastic programming is used to model DAM price
uncertainties, while the robust optimization approach is proposed for more conservative decision making in
RTM considering its high volatile prices. The results are optimal price-quantity pairs, which should be submitted
to the DAM and RTM by the ESS owner.