scholarly journals Prosumers’ Behavior under a Regulation That Encourages Strict Self-Sufficiency. The Case of Spanish Photovoltaic Micro-Generation

Energies ◽  
2021 ◽  
Vol 14 (4) ◽  
pp. 1114
Author(s):  
Pere Mir-Artigues ◽  
Pablo del Río
Keyword(s):  
Electricity Markets ◽  
Electricity Market ◽  
Specific Form ◽  
Economic Behavior ◽  
Distribution Grid ◽  
Self Sufficiency ◽  
Regulatory Limits ◽  
Regulatory Measures ◽  
Self Production ◽  
Municipal Level

The reduction of equipment costs encourages the diffusion of photovoltaic micro-generation, however, proper regulatory measures should be implemented to facilitate self-production dissemination and to promote the emergence of new electricity markets which integrate prosumers. The specific form of these markets will depend on the level of prosumers’ self-sufficiency and the type of grid to which they will be connected. Unfortunately, Spain has been an example of resistance to micro-generation deployment. However, some things have started to change recently, albeit only to a certain extent. This article explains the key elements of the latest regulation of photovoltaic micro-generation in Spain and, through a stylized model, describes the economic behavior of prosumers in such a regulatory framework. It is concluded that this regulation only encourages prosumer plants which are strictly focused on self-sufficiency because it discourages exports and limits capacities and this regulation discourages the smart renewal of the distribution grid because it prevents prosumers from participating in the electricity market. It is recommended that the aforementioned regulatory limits be removed and pilot experiences for the market participation of prosumers be promoted by creating the appropriate technical and regulatory conditions, for example, at the municipal level.

scholarly journals Optimal Simulation of Three Peer to Peer (P2P) Business Models for Individual PV Prosumers in a Local Electricity Market Using Agent-Based Modelling

Buildings ◽  
2020 ◽  
Vol 10 (8) ◽  
pp. 138 ◽  
Author(s):  
Marco Lovati ◽  
Xingxing Zhang ◽  
Pei Huang ◽  
Carl Olsmats ◽  
Laura Maturi
Keyword(s):  
Electricity Markets ◽  
Electricity Market ◽  
Business Models ◽  
Energy System ◽  
Peer To Peer ◽  
Positive Energy ◽  
Financial Flows ◽  
Agent Based ◽  
Agent Based Modelling ◽  
Self Sufficiency

Solar photovoltaic (PV) is becoming one of the most significant renewable sources for positive energy district (PED) in Sweden. The lack of innovative business models and financing mechanisms are the main constraints for PV’s deployment installed in local communities. This paper therefore proposes a peer-to-peer (P2P) business model for 48 individual building prosumers with PV installed in a Swedish community. It considers energy use behaviour, electricity/financial flows, ownerships and trading rules in a local electricity market. Different local electricity markets are designed and studied using agent-based modelling technique, with different energy demands, cost–benefit schemes and financial hypotheses for an optimal evaluation. This paper provides an early insight into a vast research space, i.e., the operation of an energy system through the constrained interaction of its constituting agents. The agents (48 households) show varying abilities in exploiting the common PV resource, as they achieve very heterogeneous self-sufficiency levels (from ca. 15% to 30%). The lack of demand side management suggests that social and lifestyle differences generate huge impacts on the ability to be self-sufficient with a shared, limited PV resource. Despite the differences in self-sufficiency, the sheer energy amount obtained from the shared PV correlates mainly with annual cumulative demand.

ECONOMIC BEHAVIOR OF CONSUMERS UNDER CONDITIONS OF CONTEMPORARY CHALLENGES IN THE POST-REFORM PERIOD OF DEVELOPMENT OF THE ELECTRIC POWER INDUSTRY IN RUSSIA

2020 ◽  
Vol 1 (11) ◽  
pp. 33-45
Author(s):  
S. Ya. CHERNAVSKII ◽  
◽  
N. R. KHACHATURYAN ◽  
Keyword(s):  
Electric Power ◽  
Electricity Markets ◽  
Electricity Market ◽  
Power Plants ◽  
Fossil Fuels ◽  
Electric Power Industry ◽  
Power Industry ◽  
Economic Behavior ◽  
Negative Consequences ◽  
New Phenomena

The article examines the consequences of the reform of the Russian electric power industry, which resulted in the formation and operation of: wholesale electricity markets in the European part of the country, including the Urals, and in Western Siberia; the system of state-owned companies transporting electricity; and the aggregate of market platforms for the retail electricity market. New phenomena are analyzed, in particular: the emergence of vertically integrated companies coordinating the production and combustion of fossil fuels in power plants; the emergence of competition in the heat market from the side of heat generating plants, which led to financial losses for the existing CHP plants that are part of heat generating companies - participants in the wholesale electricity market; the withdrawal of some heat consumers from the market and the construction of their own heat generating plants; failure to create a competitive retail electricity market. Measures are proposed to prevent the negative consequences of the detected phenomena.

scholarly journals Effects of Local Electricity Trading on Power Flows and Voltage Levels for Different Elasticities and Prices

Energies ◽  
2019 ◽  
Vol 12 (24) ◽  
pp. 4708 ◽  
Author(s):  
Lin Herenčić ◽  
Perica Ilak ◽  
Ivan Rajšl
Keyword(s):  
Electricity Markets ◽  
Electricity Market ◽  
Unit Commitment ◽  
Low Voltage ◽  
Early Stage ◽  
Local Level ◽  
Added Value ◽  
Distribution Grid ◽  
Electricity Trading ◽  
Trading Period

Local electricity trading is a concept that allows active electricity trading between consumers, producers and/or prosumers located in a local low voltage distribution grid. The concept should provide added value to the participants and accelerate the democratization, decarbonization and decentralization of the power sector. The effects of local electricity trading on voltage levels in distribution grids are just in the early stage of research, together with the possible means of control, market design, market-clearing approaches and integration of the local electricity trading within the electricity markets. The aim of this work is to contribute to the research by examining if near real-time local electricity trading can be implemented in a distribution grid without time-consuming security-constrained unit commitment calculations for the observed time horizon and without security-constrained economic dispatch calculations for each trading period. Moreover, this work investigates if the implementation of local electricity trading can contribute to the avoidance of unpredictable and unfavorable consumption/production patterns, which can appear in the distribution grid due to the random behavior of a large number of participants. It is analyzed if a contribution to the maintenance of the voltages and currents within limits can be achieved that way. The method for simulation of a local electricity market and analysis of power flows and voltage levels is presented. The auction-based local electricity trading is simulated and applied on the modified IEEE European Low Voltage Test Feeder where the effects of local electricity trading on power flows and voltage levels are studied for boundary elasticities and prices of demand and supply offering curves. It is shown that the local electricity trading has potential to incentivize active participation of prosumers, which can lead to better demand/supply balancing at the local level and to a decrease of voltage fluctuations.

scholarly journals Electricity Markets during the Liberalization: The Case of a European Union Country

Energies ◽  
2021 ◽  
Vol 14 (14) ◽  
pp. 4317
Author(s):  
Štefan Bojnec ◽  
Alan Križaj
Keyword(s):  
Electricity Markets ◽  
Electricity Market ◽  
Renewable Energy Sources ◽  
Primary Energy ◽  
Lessons Learned ◽  
Policy Implications ◽  
Daily Maximum ◽  
Energy Prices ◽  
Electricity Prices ◽  
Electricity Power

This paper analyzes electricity markets in Slovenia during the specific period of market deregulation and price liberalization. The drivers of electricity prices and electricity consumption are investigated. The Slovenian electricity markets are analyzed in relation with the European Energy Exchange (EEX) market. Associations between electricity prices on the one hand, and primary energy prices, variation in air temperature, daily maximum electricity power, and cross-border grid prices on the other hand, are analyzed separately for industrial and household consumers. Monthly data are used in a regression analysis during the period of Slovenia’s electricity market deregulation and price liberalization. Empirical results show that electricity prices achieved in the EEX market were significantly associated with primary energy prices. In Slovenia, the prices for daily maximum electricity power were significantly associated with electricity prices achieved on the EEX market. The increases in electricity prices for households, however, cannot be explained with developments in electricity prices on the EEX market. As the period analyzed is the stage of market deregulation and price liberalization, this can have important policy implications for the countries that still have regulated and monopolized electricity markets. Opening the electricity markets is expected to increase competition and reduce pressures for electricity price increases. However, the experiences and lessons learned among the countries following market deregulation and price liberalization are mixed. For industry, electricity prices affect cost competitiveness, while for households, electricity prices, through expenses, affect their welfare. A competitive and efficient electricity market should balance between suppliers’ and consumers’ market interests. With greening the energy markets and the development of the CO2 emission trading market, it is also important to encourage use of renewable energy sources.

scholarly journals Competition in Power Generation: Ex-ante Analysis of Indonesia’s Electricity Market

Energies ◽  
2020 ◽  
Vol 13 (24) ◽  
pp. 6741
Author(s):  
Dzikri Firmansyah Hakam ◽  
Sudarso Kaderi Wiyono ◽  
Nanang Hariyanto
Keyword(s):  
Power System ◽  
Market Structure ◽  
Market Power ◽  
Electricity Markets ◽  
Electricity Market ◽  
Regulatory Reform ◽  
Optimal Number ◽  
Load Flow ◽  
Utility Company ◽  
Competitive Electricity Markets

This research optimises the mix and structure of Generation Companies (GenCos) in the Sumatra power system, Indonesia. Market power, indicating the ability to raise prices profitably above the competitive level, tends to be a significant problem in the aftermath of electricity market restructuring. In the process of regulatory reform and the development of competitive electricity markets, it is desirable and practical to establish an efficient number of competitor GenCos. Simulations of a power system account for multi-plant mergers of GenCos subject to a regulatory measure of the Residual Supply Index and the influence of direct current load flow and the topology of the system. This study simulates the Sumatra power system in order to determine the following: optimal market structure, efficient GenCo generation mix, and the optimal number of competitive GenCos. Further, this study seeks to empirically optimise the electricity generation mix and electricity market structure of the Sumatra power system using DC load flow optimisation, market power index, and multi-plant monopoly analysis. The simulations include generation and transmission constraints to represent network constraints. This research is the first to analyse the Sumatra power system using imperfect (Cournot) competition modelling. Furthermore, this study is the first kind to optimise the mix and structure of the Sumatra generation power market. The guidelines and methodology in this research can be implemented in other countries characterised by a monopoly electricity utility company.

scholarly journals Decentralized Prosumer-Centric P2P Electricity Market Coordination with Grid Security

Energies ◽  
2021 ◽  
Vol 14 (15) ◽  
pp. 4665
Author(s):  
Duarte Kazacos Winter ◽  
Rahul Khatri ◽  
Michael Schmidt
Keyword(s):  
Electricity Markets ◽  
Electricity Market ◽  
Power Flow ◽  
Power Plants ◽  
Optimal Power Flow ◽  
Free Market ◽  
Economic Value ◽  
New Paradigm ◽  
Grid Security ◽  
Virtual Power Plants

The increasing number of prosumers and the accompanying greater use of decentralised energy resources (DERs) bring new opportunities and challenges for the traditional electricity systems and the electricity markets. Microgrids, virtual power plants (VPPs), peer-to-peer (P2P) trading and federated power plants (FPPs) propose different schemes for prosumer coordination and have the potential of becoming the new paradigm of electricity market and power system operation. This paper proposes a P2P trading scheme for energy communities that negotiates power flows between participating prosumers with insufficient renewable power supply and prosumers with surplus supply in such a way that the community welfare is maximized while avoiding critical grid conditions. For this purpose, the proposed scheme is based on an Optimal Power Flow (OPF) problem with a Multi-Bilateral Economic Dispatch (MBED) formulation as an objective function. The solution is realized in a fully decentralized manner on the basis of the Relaxed Consensus + Innovations (RCI) algorithm. Network security is ensured by a tariff-based system organized by a network agent that makes use of product differentiation capabilities of the RCI algorithm. It is found that the proposed mechanism accurately finds and prevents hazardous network operations, such as over-voltage in grid buses, while successfully providing economic value to prosumers’ renewable generation within the scope of a P2P, free market.

scholarly journals Credible Peer-to-Peer Trading with Double-Layer Energy Blockchain Network in Distributed Electricity Markets

Electronics ◽  
2021 ◽  
Vol 10 (15) ◽  
pp. 1815
Author(s):  
Longze Wang ◽  
Yu Xie ◽  
Delong Zhang ◽  
Jinxin Liu ◽  
Siyu Jiang ◽  
...  
Keyword(s):  
Double Layer ◽  
Electricity Markets ◽  
Electricity Market ◽  
Peer To Peer ◽  
Malicious Nodes ◽  
Energy Trading ◽  
Contract Performance ◽  
Trading Model ◽  
Consensus Information ◽  
Available Information

Blockchain-based peer-to-peer (P2P) energy trading is one of the most viable solutions to incentivize prosumers in distributed electricity markets. However, P2P energy trading through an open-end blockchain network is not conducive to mutual credit and the privacy protection of stakeholders. Therefore, improving the credibility of P2P energy trading is an urgent problem for distributed electricity markets. In this paper, a novel double-layer energy blockchain network is proposed that stores private trading data separately from publicly available information. This blockchain network is based on optimized cross-chain interoperability technology and fully considers the special attributes of energy trading. Firstly, an optimized ring mapping encryption algorithm is designed to resist malicious nodes. Secondly, a consensus verification subgroup is built according to contract performance, consensus participation and trading enthusiasm. This subgroup verifies the consensus information through the credit-threshold digital signature. Thirdly, an energy trading model is embedded in the blockchain network, featuring dynamic bidding and credit incentives. Finally, the Erenhot distributed electricity market in China is utilized for example analysis, which demonstrates the proposed method could improve the credibility of P2P trading and realize effective supervision.

scholarly journals Prosumer Community Portfolio Optimization via Aggregator: The Case of the Iberian Electricity Market and Portuguese Retail Market

Energies ◽  
2021 ◽  
Vol 14 (13) ◽  
pp. 3747
Author(s):  
Ricardo Faia ◽  
Tiago Pinto ◽  
Zita Vale ◽  
Juan Manuel Corchado
Keyword(s):  
Portfolio Optimization ◽  
Electricity Markets ◽  
Electricity Market ◽  
Retail Market ◽  
Wholesale Market ◽  
Generation Capacity ◽  
Wholesale Electricity Market ◽  
Portfolio Optimization Model ◽  
Photovoltaic Generators

The participation of household prosumers in wholesale electricity markets is very limited, considering the minimum participation limit imposed by most market participation rules. The generation capacity of households has been increasing since the installation of distributed generation from renewable sources in their facilities brings advantages for themselves and the system. Due to the growth of self-consumption, network operators have been putting aside the purchase of electricity from households, and there has been a reduction in the price of these transactions. This paper proposes an innovative model that uses the aggregation of households to reach the minimum limits of electricity volume needed to participate in the wholesale market. In this way, the Aggregator represents the community of households in market sales and purchases. An electricity transactions portfolio optimization model is proposed to enable the Aggregator reaching the decisions on which markets to participate to maximize the market negotiation outcomes, considering the day-ahead market, intra-day market, and retail market. A case study is presented, considering the Iberian wholesale electricity market and the Portuguese retail market. A community of 50 prosumers equipped with photovoltaic generators and individual storage systems is used to carry out the experiments. A cost reduction of 6–11% is achieved when the community of households buys and sells electricity in the wholesale market through the Aggregator.

scholarly journals Investment Incentives in Competitive Electricity Markets

2018 ◽  
Vol 8 (10) ◽  
pp. 1978 ◽  
Author(s):  
Jaber Valinejad ◽  
Taghi Barforoshi ◽  
Mousa Marzband ◽  
Edris Pouresmaeil ◽  
Radu Godina ◽  
...  
Keyword(s):  
Electricity Markets ◽  
Electricity Market ◽  
Planning Horizon ◽  
Optimization Method ◽  
Design Criterion ◽  
Mixed Integer ◽  
Investment Incentives ◽  
Mixed Integer Linear Program ◽  
Interconnected Power System ◽  
The Impact

This paper presents the analysis of a novel framework of study and the impact of different market design criterion for the generation expansion planning (GEP) in competitive electricity market incentives, under variable uncertainties in a single year horizon. As investment incentives conventionally consist of firm contracts and capacity payments, in this study, the electricity generation investment problem is considered from a strategic generation company (GENCO) ′ s perspective, modelled as a bi-level optimization method. The first-level includes decision steps related to investment incentives to maximize the total profit in the planning horizon. The second-level includes optimization steps focusing on maximizing social welfare when the electricity market is regulated for the current horizon. In addition, variable uncertainties, on offering and investment, are modelled using set of different scenarios. The bi-level optimization problem is then converted to a single-level problem and then represented as a mixed integer linear program (MILP) after linearization. The efficiency of the proposed framework is assessed on the MAZANDARAN regional electric company (MREC) transmission network, integral to IRAN interconnected power system for both elastic and inelastic demands. Simulations show the significance of optimizing the firm contract and the capacity payment that encourages the generation investment for peak technology and improves long-term stability of electricity markets.

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