This book explores decision-making under uncertainty in electricity markets, focusing on stochastic programming and risk management. It covers the structure of electricity markets, including market organization, agents, and key markets like the pool, futures, and reserve markets. The book discusses the decision-making process for various market participants, such as consumers, retailers, producers, and independent system operators, under uncertainty. Chapter 2 introduces stochastic programming fundamentals, including random variables, stochastic processes, scenarios, and risk measures. It also covers solving stochastic programming problems and quality metrics like the expected value of perfect information and value of the stochastic solution. Chapter 3 focuses on uncertainty characterization via scenarios, including scenario generation, reduction, and case studies on electricity prices and wind speeds. Chapter 4 discusses risk management, covering risk-neutral and risk-averse decision-making, various risk measures, and their application in stochastic programming. Chapters 5-11 explore specific applications of stochastic programming in electricity markets, including producer pool trading, wind power producers, futures market trading, medium-term retailer trading, consumer energy procurement, and market clearing under uncertainty, particularly with wind energy. The book also includes case studies, examples, and exercises for each chapter. Appendices provide GAMS codes for examples and data for a 24-node system. The book concludes with solutions to exercises and references. Overall, it serves as a comprehensive guide to decision-making under uncertainty in electricity markets, with a focus on stochastic programming and risk management.This book explores decision-making under uncertainty in electricity markets, focusing on stochastic programming and risk management. It covers the structure of electricity markets, including market organization, agents, and key markets like the pool, futures, and reserve markets. The book discusses the decision-making process for various market participants, such as consumers, retailers, producers, and independent system operators, under uncertainty. Chapter 2 introduces stochastic programming fundamentals, including random variables, stochastic processes, scenarios, and risk measures. It also covers solving stochastic programming problems and quality metrics like the expected value of perfect information and value of the stochastic solution. Chapter 3 focuses on uncertainty characterization via scenarios, including scenario generation, reduction, and case studies on electricity prices and wind speeds. Chapter 4 discusses risk management, covering risk-neutral and risk-averse decision-making, various risk measures, and their application in stochastic programming. Chapters 5-11 explore specific applications of stochastic programming in electricity markets, including producer pool trading, wind power producers, futures market trading, medium-term retailer trading, consumer energy procurement, and market clearing under uncertainty, particularly with wind energy. The book also includes case studies, examples, and exercises for each chapter. Appendices provide GAMS codes for examples and data for a 24-node system. The book concludes with solutions to exercises and references. Overall, it serves as a comprehensive guide to decision-making under uncertainty in electricity markets, with a focus on stochastic programming and risk management.