Risk Management of Energy Communities with Hydrogen Production and Storage Technologies

The distributed integration of renewable energy sources plays a central role in the decarbonization of economies. In this regard, energy communities arise as a promising entity to coordinate groups of proactive consumers (prosumers) and incentivize the investment on clean technologies. However, the uncertain nature of renewable energy generation, residential loads, and trading tariffs pose important challenges, both at the operational and economic levels. We study how this management can be directly undertaken by an arbitrageur that, making use of an adequate price tariff system, serves as an intermediary with the central electricity market to coordinate different types of prosumers under risk aversion. In particular, we consider a sequential futures and spot market where the aggregated shortage or excess of energy within the community can be traded. We aim to study the impact of the integration of hydrogen production and storage systems, together with a parallel hydrogen market, on the community operation. These interactions are modeled as a game theoretical setting in the form of a stochastic two-stage bilevel optimization problem, which is latter reformulated without approximation as a single-level mixed-integer linear problem (MILP). An extensive set of numerical experiments based on real data is performed to study the operation of the energy community under different technical and economical conditions. Results indicate that the optimal involvement in futures and spot markets is highly conditioned by the community's risk aversion and self-sufficiency levels. Moreover, the external hydrogen market has a direct effect on the community's internal price-tariff system, and depending on the market conditions, may worsen the utility of individual prosumers

A monetary model of the exchange rate with informational frictions

Data for the U.S. and the Euro area during the post-Bretton Woods period shows that nominal and real exchange rates are more volatile than consumption, very persistent, and highly correlated with each other. Standard models with nominal rigidities match reasonably well the volatility and persistence of the nominal exchange rate, but require an average contract duration above 4 quarters to approximate the real exchange rate counterparts. I propose a two-country model with financial intermediaries and argue that: First, sticky and asymmetric information introduces a lag in the consumption response to currently unobservable shocks, mostly foreign.> ; Accordingly, the real exchange rate becomes more volatile to induce enough expenditure-switching across countries for all markets to clear. Second, differences in the degree of price stickiness across markets and firms weaken the correlation between the nominal exchange rate and the relative CPI price. This correlation is important to match the moments of the real exchange rate. The model suggests that asymmetric information and differences in price stickiness account better for the stylized facts without relying on an average contract duration for the U.S. larger than the current empirical estimates.Foreign exchange rates

The competition and equilibrium in power markets under decarbonization and decentralization

Equilibrium analysis has been widely studied as an effective tool to model gaming interactions and predict market results. However, as competition modes are fundamentally changed by the decarbonization and decentralization of power systems, analysis techniques must evolve. This article comprehensively reviews recent developments in modelling methods, practical settings and solution techniques in equilibrium analysis. Firstly, we review equilibrium in the evolving wholesale power markets which feature new entrants, novel trading products and multi-stage clearing. Secondly, the competition modes in the emerging distribution market and distributed resource aggregation are reviewed, and we compare peer-to-peer clearing, cooperative games and Stackelberg games. Furthermore, we summarize the methods to treat various information acquisition degrees, risk preferences and rationalities of market participants. To deal with increasingly complex market settings, this review also covers refined analytical techniques and agent-based models used to compute the equilibrium. Finally, based on this review, this paper summarizes key issues in the gaming and equilibrium analysis in power markets under decarbonization and decentralization

Does lending behaviour of banks in emerging economies vary by ownership? Evidence from the Indian banking sector

While much has been discussed about the relationship between ownership and financial performance of banks in emerging markets, literature about cross-ownership differences in credit market behaviour of banks in emerging economies is sparse. Using bank-level data from India, and a portfolio-choice model, for nine years (1995-96 to 2003-04), we examine banks’ behaviour in the context of emerging credit markets. Our results indicate that, in India, the data for the domestic banks fit well the aforementioned portfolio-choice model, especially for private banks, but the model cannot explain the behaviour of foreign banks. In general, allocation of assets between risk-free government securities and risky credit is affected by past allocation patterns, stock exchange listing (for private banks), risk averseness of banks, regulations regarding treatment of NPA, and ability of banks to recover doubtful credit. It is also evident that banks deal with changing levels of systematic risk by altering the ratio of securitized to non-securitized credit. These results have implications for disbursal of credit to small and medium enterprises in India

SLA Establishment Decisions: Minimizing the Risk of SLA Violations

This thesis presents an approach for service providers to select an SLA portfolio that minimizes the SLA violation risk. It considers constraints on expected profit and available resources. The problem is addressed by applying decision theory and risk measures, especially by adapting the concept of portfolio selection by Harry Markowitz and the semi-variance. In order to capture a decision maker\u27s attitude towards risk, utility theory and the concept of risk aversion are used

Mass Customization of Cloud Services - Engineering, Negotiation and Optimization

Several challenges hinder the entry of mass customization principles into Cloud computing: Firstly, the service engineering on provider side needs to be automated. Secondly, there has to be a suitable negotiation mechanism helping provider and consumer on finding an agreement on Quality-of-Service and price. Thirdly, finding the optimal configuration requires adequate and efficient optimization techniques. The work at hand addresses these challenges through technical and economic contributions

Designing a Robust Decentralized Energy Transactions Framework for Active Prosumers in Peer-to-Peer Local Electricity Markets

In this paper, a fully decentralized local energy market based on peer-to-peer(P2P) trading is proposed for small-scale prosumers. In the proposed market, the prosumers are classified as buyers and sellers and can bilaterally engage in energy trading (P2P) with each other. The buyer prosumers are equipped with electrical storage and can participate in a demand response (DR) program while protecting their privacy. In addition to bilateral negotiating with the local sellers, these players can compensate for their energy deficiency from the upstream market as the retail market at hours without local generation. In this paper, the retail market price is assumed uncertain. Robust optimization is applied to model this uncertainty in the buyer prosumers model. The proposed decentralized robust optimization guarantees the solution’s existence for each realization of uncertainty components. Furthermore, it performs optimization to realize the hard worse case from uncertainty components. A fully decentralized approach known as the fast alternating direction method of multipliers (FADMM) is employed to solve the proposed decentralized robust problem. The proposed approach does not require third-party involvement as a supervisory node nor disclose the players’ private information. Numerical studies were carried out on a small distribution system with several prosumers. The numerical results suggested the operationality and applicability of the proposed decentralized robust framework and the decentralized solving method