Management of Local Citizen Energy Communities and Bilateral Contracting in Multi-Agent Electricity Markets

Algarvio, Hugo

doi:10.3390/smartcities4040076

Cited by 13 publications

(15 citation statements)

References 64 publications

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“…The negotiation model is based on automated negotiation (see [7,[32][33][34][35] for a complete review on negotiation models and tools). The decision to accept or reject an offer depends on multi-issue utility functions, which score offers considering agents' preferences [14,36].…”

Section: Bilateral Negotiationmentioning

confidence: 99%

The Economic Sustainability of Variable Renewable Energy Considering the Negotiation of Different Support Schemes

Algarvio

2023

Sustainability

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The increase in the prices of fossil fuels and environmental issues are leading to a high investment in wind power and solar photovoltaic all over Europe, reducing its dependence on imported fossil fuels. The European countries started incentive programs for investment in these renewable technologies, which consisted of fixed and market premium feed-in tariffs. These feed-in schemes involve long-term contracts with updated prices over inflation. These incentives highly increase the investment and installation of new renewable capacity in Europe. They lead to high renewable penetrations in power systems but originate a tariff deficit due to the difference between market prices and the tariffs paid to these technologies. End-use consumers pay the tariff deficit on retail tariffs. This work analyzes the market-based remuneration of variable renewable energy considering different support schemes and the role of risk-sharing contracts in mitigating the spot price volatility. It presents models able to negotiate bilateral contracts considering risk management, notably risk attitude and risk sharing, bid establishment, and clause (by-laws) negotiation. Furthermore, to evaluate the economic sustainability of renewable generation in Spain, it presents a study for different 12-year support schemes starting in 2010. The results confirmed that, in the case of using risk-sharing contracts during crisis periods, the incidence of low energy prices (price “cannibalization”) decreases, such as the tariff deficit. Furthermore, in the case of high-inflation periods, these contracts hedge against the increase in retail prices, resulting in an economic surplus for consumers.

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Section: Bilateral Negotiationmentioning

confidence: 99%

The Economic Sustainability of Variable Renewable Energy Considering the Negotiation of Different Support Schemes

Algarvio

2023

Sustainability

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“…In 1999, Xerox Corporation, California, USA and Massachusetts institute of technology, USA proposed the concept of ubiquitous network and internet of things, respectively [31]. Ubiquitous IoT means that information can be connected and interacted without restricting the four elements of time, place, people and things [32]. The essence of ubiquitous power IoT lies in the collection, exchange, fusion and efficient expansion of "energy data" in the power industry, with the basic features of holographic perception, ubiquitous connection, open sharing and business innovation.…”

Section: The Concept Of Ubiquitous Power Iotmentioning

confidence: 99%

Research on power quality assessment based on ubiquitous power IoT

Zhang¹,

Zhi²,

Zhao³

et al. 2023

Applied Mathematics and Nonlinear Sciences

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With the rapid development of the Internet in this era, the traditional power grid is no longer able to meet the growing demand of the people for electricity. In order to realize a new generation of power system with comprehensive sensing, reliable transmission, intelligent processing and interconnection, the State Grid proposes the strategic goal of developing ubiquitous power IoT. Firstly, the concept and basic architecture of ubiquitous power IoT are elaborated, and then the main key technologies of the architecture of power energy consumption monitoring and management system are explained. The power quality parameters are measured and calculated, and the G1 method, which is computationally small and does not require consistency testing, is used to determine the subjective weights in the power quality evaluation process, which can truly reflect the power quality level of power grids in different regions. The information entropy method is used to determine the objective weights in the process of power quality evaluation to solve the error of artificially determined weights, and the combination of subjective weights and objective weights can more truly reflect the influence of each index on the comprehensive level of power quality. The results of the study show that PV is rated between 2 and 3 good when grid-connected and off-grid, and wind turbines are rated between 3 and 4 medium when grid-connected and off-grid. The results of the integrated assessment levels are in line with the actual situation and can meet the growing demand for electricity.

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“…Against this background, consumers are incentivized to be part of CECs and to manage their local resources [26][27][28][29]. Indeed, the European legislation's flexibility regarding CECs allows the formation of multiple types of energy communities, from a microgrid community with one owner similar to a prosumer to a national-level virtual community similar to a retailer [30][31][32][33][34].…”

Section: Introductionmentioning

confidence: 99%

“…Their regulatory framework, indicating their role in power systems and their potential members, benefits, and functions [21]. • A review and model for their agent-based formation and management of their resources [27].…”

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confidence: 99%

Strategic Behavior of Competitive Local Citizen Energy Communities in Liberalized Electricity Markets

Algarvio,

Couto,

Lopes

et al. 2024

Energies

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The liberalization of energy retail markets empowered consumers with the ability to be part of new emerging entities, such as Citizen Energy Communities. With the increasing penetration of decentralized variable generation, communities have the advantage of incentive local carbon neutrality and sustainability. Local generation reduces transport grid usage and costs to consumers. Furthermore, worldwide legislation incentives energy communities by providing them discounts to other fee parts of the tariff apart from wholesale prices. This paper presents a model of strategic behavior, investment, and trading of energy communities. The model comprises the investment in local renewable generation, the design of competitive tariffs, and strategic bidding on wholesale markets. Consumers have an optimization model that selects the retail tariff that minimizes their costs with energy. These models are tested using data from Portuguese consumers and the Iberian electricity market. Results from the study indicate that inflexible consumers may reduce their costs by 29% by being part of the community. Furthermore, they have the potential to reduce their costs above 50% when using demand–response, adapting themselves to local production and wholesale prices.

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Management of Local Citizen Energy Communities and Bilateral Contracting in Multi-Agent Electricity Markets

Cited by 13 publications

References 64 publications

The Economic Sustainability of Variable Renewable Energy Considering the Negotiation of Different Support Schemes

The Economic Sustainability of Variable Renewable Energy Considering the Negotiation of Different Support Schemes

Research on power quality assessment based on ubiquitous power IoT

Strategic Behavior of Competitive Local Citizen Energy Communities in Liberalized Electricity Markets

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