An Exchange Mechanism to Coordinate Flexibility in Residential Energy Cooperatives

Energy cooperatives (ECs) such as residential and industrial microgrids have the potential to mitigate increasing fluctuations in renewable electricity generation, but only if their joint response is coordinated. However, the coordination and control of independently operated flexible resources (e.g., storage, demand response) imposes critical challenges arising from the heterogeneity of the resources, conflict of interests, and impact on the grid. Correspondingly, overcoming these challenges with a general and fair yet efficient exchange mechanism that coordinates these distributed resources will accommodate renewable fluctuations on a local level, thereby supporting the energy transition. In this paper, we introduce such an exchange mechanism. It incorporates a payment structure that encourages prosumers to participate in the exchange by increasing their utility above baseline alternatives. The allocation from the proposed mechanism increases the system efficiency (utilitarian social welfare) and distributes profits more fairly (measured by Nash social welfare) than individual flexibility activation. A case study analyzing the mechanism performance and resulting payments in numerical experiments over real demand and generation profiles of the Pecan Street dataset elucidates the efficacy to promote cooperation between co-located flexibilities in residential cooperatives through local exchange.Comment: Accepted in IEEE ICIT 201

Natural resources conservation management and strategies in agriculture

This paper suggests a holistic framework for assessment and improvement of management strategies for conservation of natural resources in agriculture. First, it incorporates an interdisciplinary approach (combining Economics, Organization, Law, Sociology, Ecology, Technology, Behavioral and Political Sciences) and presents a modern framework for assessing environmental management and strategies in agriculture including: specification of specific “managerial needs” and spectrum of feasible governance modes (institutional environment; private, collective, market, and public modes) of natural resources conservation at different level of decision-making (individual, farm, eco-system, local, regional, national, transnational, and global); specification of critical socio-economic, natural, technological, behavioral etc. factors of managerial choice, and feasible spectrum of (private, collective, public, international) managerial strategies; assessment of efficiency of diverse management strategies in terms of their potential to protect diverse eco-rights and investments, assure socially desirable level of environmental protection and improvement, minimize overall (implementing, third-party, transaction etc.) costs, coordinate and stimulate eco-activities, meet preferences and reconcile conflicts of individuals etc. Second, it presents evolution and assesses the efficiency of diverse management forms and strategies for conservation of natural resources in Bulgarian agriculture during post-communist transformation and EU integration (institutional, market, private, and public), and evaluates the impacts of EU CAP on environmental sustainability of farms of different juridical type, size, specialization and location. Finally, it suggests recommendations for improvement of public policies, strategies and modes of intervention, and private and collective strategies and actions for effective environmental protection

Automated peer-to-peer negotiation for energy contract settlements in residential cooperatives

This paper presents an automated peer-to-peer negotiation strategy for settling energy contracts among prosumers in a Residential Energy Cooperative considering heterogeneity prosumer preferences. The heterogeneity arises from prosumers' evaluation of energy contracts through multiple societal and environmental criteria and the prosumers' private preferences over those criteria. The prosumers engage in bilateral negotiations with peers to mutually agree on periodical energy contracts/loans consisting of the energy volume to be exchanged at that period and the return time of the exchanged energy. The negotiating prosumers navigate through a common negotiation domain consisting of potential energy contracts and evaluate those contracts from their valuations on the entailed criteria against a utility function that is robust against generation and demand uncertainty. From the repeated interactions, a prosumer gradually learns about the compatibility of its peers in reaching energy contracts that are closer to Nash solutions. Empirical evaluation on real demand, generation and storage profiles – in multiple system scales – illustrates that the proposed negotiation based strategy can increase the system efficiency (measured by utilitarian social welfare) and fairness (measured by Nash social welfare) over a baseline strategy and an individual flexibility control strategy representing the status quo strategy. We thus elicit system benefits from peer-to-peer flexibility exchange already without any central coordination and market operator, providing a simple yet flexible and effective paradigm that complements existing markets

Energy Contract Settlements through Automated Negotiation in Residential Cooperatives

This paper presents an automated peer-to-peer (P2P) negotiation strategy for settling energy contracts among prosumers in a Residential Energy Cooperative (REC) considering heterogeneous prosumer preferences. The heterogeneity arises from prosumers' evaluation of energy contracts through multiple societal and environmental criteria and the prosumers' private preferences over those criteria. The prosumers engage in bilateral negotiations with peers to mutually agree on periodical energy contracts/loans that consist of an energy volume to be exchanged at that period and the return time of the exchanged energy. The prosumers keep an ordered preference profile of possible energy contracts by evaluating the contracts from their own valuations on the entailed criteria, and iteratively offer the peers contracts until an agreement is formed. A prosumer embeds the valuations into a utility function that further considers uncertainties imposed by demand and generation profiles. Empirical evaluation on real demand, generation and storage profiles illustrates that the proposed negotiation based strategy is able to increase the system efficiency (measured by utilitarian social welfare) and fairness (measured by Nash social welfare) over a baseline strategy and an individual flexibility control strategy. We thus elicit system benefits from P2P flexibility exchange already with few agents and without central coordination, providing a simple yet flexible and effective paradigm that may complement existing markets.Comment: 6 pages, 4 figures, accepted in IEEE SGComm 201

Hayek and the Texas blackout

Was the Texas blackout a market failure or regulatory failure? The economist Hayek has been adduced in support of both views. Hayek would have approved the competitive Texas system, including ERCOT. His likely view on the scarcity pricing framework is less clear, and the recent regulatory implementation of the “circuit breaker” was problematic. There is now a need to revise the scarcity pricing framework in the light of recent events, and to reflect ever-changing market conditions

Mapping of Energy Community Development in Europe: State of the Art and Research Directions

Within the framework of defining a new energy paradigm to address climate change and other global challenges, the energy community model is gaining interest in several countries, especially in Europe. This article analyses the literature and experiences of organisational forms that fall under the definition of energy communities in a broad sense, in relation to their ability to bring improvements to the social, environmental and economic dimensions, and to ensure durability and replicability. The main elements that constitute a complete, albeit simplified, model of energy community are identified and analysed. The legislative and regulatory frameworks, technologies and social innovation frameworks, identified here as enabling elements, are discussed, as well as the elements of the energy community business models and the impacts generated at the environmental and energy, economic and social levels. The transformation potential of energy communities is confirmed as more than promising. However, in order to develop as a sustainable and replicable model capable of achieving social and environmental goals, as well as economic stability, further significant research and experimentation, following a cross-sectoral and multidisciplinary approach and strong political leadership, are needed

Transmission Expansion in Argentina 5: The Regional Electricity Forum of Buenos Aires Province

This paper supplements analyses of Argentine transmission expansions at the federal level by looking at experience in Buenos Aires province. A Regional Electricity Forum of distribution companies has drawn up and begun to implement a ten-year transmission expansion plan. Contrary to previous fears, getting agreement between the members on investment and cost sharing has not been unduly problematic. More challenging was getting approval of the provincial government on funding. Deferring tariff reductions and using the revenues for investment facilitated the process, and now some innovative financing arrangements are underway. Again contrary to some previous suggestions, the controversial Area of Influence method was extended rather than replaced. This overcame concerns about free-riding. Progress and investment have been severely curtailed by the economic crisis in 2001 and subsequent federal government policy. The arrangements nonetheless appear to be working well, and to be conducive to more efficient transmission expansion. This confirms that it is practicable and advantageous to allow users rather than the transmission company or the regulator to propose and determine transmission investment, even in a meshed rather than radial system. An appropriate regulatory framework is needed to approve that part of the total budget to paid by distribution business consumers, but this does not require the regulator to lead or monitor the detail of the process