The Next-Generation Retail Electricity Market in the Context of Distributed Energy Resources: Vision and Integrating Framework

The increasing adoption of distributed energy resources (DERs) and smart grid technologies (SGTs) by end-user retail customers is changing significantly both technical and economic operations in the distribution grid. The next-generation retail electricity market will promote decentralization, efficiency, and competitiveness by accommodating existing and new agents through new business models and transactive approaches in an advanced metering infrastructure (AMI). However, these changes will bring several technical challenges to be addressed in transmission and distribution systems. Considerable activities have been carried out worldwide to study the impacts of integrating DERs into the grid and in the wholesale electricity market. However, the big vision and framework of the next-generation retail market in the context of DERs is still unclear. This paper aims to present a brief review of the present retail electricity market, some recent developments, and a comprehensive vision of the next-generation retail electricity market by describing its expected characteristics, challenges, needs, and future research topics to be addressed. A framework of integrating retail and wholesale electricity markets is also presented and discussed. The proposed vision and framework particularly highlight the necessity of new business models and regulatory initiatives to establish decentralized markets for DERs at the retail level as well as advances in technology and infrastructure necessary to allow the widespread use of DERs in active and effective ways

Towards transactive energy systems: An analysis on current trends

This paper presents a comprehensive analysis on the latest advances in transactive energy systems. The main contribution of this work is centered on the definition of transactive energy concepts and how such systems can be implemented in the smart grid paradigm. The analyzed works have been categorized into three lines of research: (i) transactive network management; (ii) transactive control; and (iii) peer-to-peer markets. It has been found that most of the current approaches for transactive energy are available as a model, lacking the real implementation to have a complete validation. For that purpose, both scientific and practical aspects of transactive energy should be studied in parallel, implementing adequate simulation platforms and tools to scrutiny the results.This work has received funding from the European Union's Horizon 2020 research and innovation programme under project DOMINOES (grant agreement No. 771066) and from FEDER Funds through COMPETE program and from National Funds through FCT under the project UID/EEA/00760/2019.info:eu-repo/semantics/publishedVersio

Modeling economic systems as locally-constructive sequential games

Real-world economies are open-ended dynamic systems consisting of heterogeneous interacting participants. Human participants are decision-makers who strategically take into account the past actions and potential future actions of other participants. All participants are forced to be locally constructive, meaning their actions at any given time must be based on their local states; and participant actions at any given time affect future local states. Taken together, these essential properties imply real-world economies are locally-constructive sequential games. This paper discusses a modeling approach, Agent-based Computational Economics, that permits researchers to study economic systems from this point of view. ACE modeling principles and objectives are first concisely presented and explained. The remainder of the paper then highlights challenging issues and edgier explorations that ACE researchers are currently pursuing