Business models in the Smart Grid: challenges, opportunities and proposals for prosumer profitability.

Considering that non-renewable energy resources are dwindling, the smart grid turns out to be one of the most promising and compelling systems for the future of energy. Not only does it combine efficient energy consumption with avant-garde technologies related to renewable energies, but it is also capable of providing several beneficial utilities, such as power monitoring and data provision. When smart grid end users turn into prosumers, they become arguably the most important value creators within the smart grid and a decisive agent of change in terms of electricity usage. There is a plethora of research and development areas related to the smart grid that can be exploited for new business opportunities, thus spawning another branch of the so-called ?green economy? focused on turning smart energy usage into a profitable business. This paper deals with emerging business models for smart grid prosumers, their strengths and weaknesses and puts forward new prosumer-oriented business models, along with their value propositions

An adaptive agent-based system for deregulated smart grids

The power grid is undergoing a major change due mainly to the increased penetration of renewables and novel digital instruments in the hands of the end users that help to monitor and shift their loads. Such transformation is only possible with the coupling of an information and communication technology infrastructure to the existing power distribution grid. Given the scale and the interoperability requirements of such future system, service-oriented architectures (SOAs) are seen as one of the reference models and are considered already in many of the proposed standards for the smart grid (e.g., IEC-62325 and OASIS eMIX). Beyond the technical issues of what the service-oriented architectures of the smart grid will look like, there is a pressing question about what the added value for the end user could be. Clearly, the operators need to guarantee availability and security of supply, but why should the end users care? In this paper, we explore a scenario in which the end users can both consume and produce small quantities of energy and can trade these quantities in an open and deregulated market. For the trading, they delegate software agents that can fully interoperate and interact with one another thus taking advantage of the SOA. In particular, the agents have strategies, inspired from game theory, to take advantage of a service-oriented smart grid market and give profit to their delegators, while implicitly helping balancing the power grid. The proposal is implemented with simulated agents and interaction with existing Web services. To show the advantage of the agent with strategies, we compare our approach with the “base” agent one by means of simulations, highlighting the advantages of the proposal

Characterization of new flexible players: Deliverable D3.2

Project TradeRES - New Markets Design & Models for 100% Renewable Power Systems: https://traderes.eu/about/ABSTRACT: The subject matter of this report is the analysis of the electricity markets’ actors’ scene, through the identification of actor classes and the characterisation of actors from a behavioural and an operational perspective. The technoeconomic characterization of market participants aims to support the upcoming model enhancements by aligning the agent-based model improvements with the modern market design challenges and the contemporary characteristics of players. This work has been conducted in the context of task T3.2, which focuses on the factorization of the distinctive operational and behavioural characteristics of players in market structures. Traditional parties have been considered together with new and emerging roles, while special focus has been given on new actors related to flexible technologies and demand-side response. Among the main objectives have been the characterization of individual behaviours, objectives and requirements of different electricity market players, considering both the traditional entities and the new distributed ones, and the detailed representation of the new actors.N/

Blockchain in Energy Communities, A proof of concept

This report aims at exploring the use of the distributed ledger paradigm to incentive the participation of the citizen to a truly free, open and interoperable energy market, producing a feasibility study and a first demo testbed, taking also into consideration privacy, cybersecurity and big-data issues of the smart-home in the Energy market context. This study is intended to support point 4.1, 4.2 and 4.3 of the DSM (COM(2015)192) and point 2.2 of the Energy Union package (COM(2015)80.JRC.E.3-Cyber and Digital Citizens' Securit

Using blockchain to create and capture value in the energy sector

The undergoing digital transition of the energy sector refers to the integration of decentralized ledger technologies and data-driven solutions that have the potential to truly revolutionize its ecosystem and business practices. The aim of a decentralized, inter connected and two-way interactive energy grid can be enabled by leveraging blockchain technologies. This research investigates how blockchain technology can create and capture value from data and the new business models applied in Web 3.0 and blockchain-based environments in the energy sector. A qualitative case study research design was conducted for primary data collection and pilot projects by the European Commission were used for secondary data collection. The analysis shows local energy communities as the main blockchain application in this sector, with adjacent applications such as P2P energy trading, smart contract & metering, carbon trading and grid management. The main benefits associated are transparency, integrity, grid automation and renewable energy sources promotion, and obstacles are mainly associated with the contrasting centralized design of the current energy systems. We conclude that value is created and captured through data provenance and transparency, data monetization and tokenization, and data sharing and collaboration in blockchain platforms. New business models include the decentralization and fusion between energy production and consumption, generating a new actor known as the prosumer. Fundamental to a successful implementation of local energy communities that allow energy and asset trading between peers.A transição digital do sector energético baseia-se na integração de tecnologias de registo descentralizadas e de soluções de tratamento de dados que têm o potencial de revolucionar o seu ecossistema. O objetivo de uma rede de energia descentralizada e interconectada em ambos os sentidos, pode ser concretizado através do recurso a tecnologias blockchain. Esta investigação analisa a forma como esta tecnologia pode criar e reter valor a partir de dados e dos novos modelos de negócio associados à Web 3.0 e a ambientes baseados em blockchain neste sector. Para a recolha de dados primários, foi efetuado um caso de estudo qualitativo. Para dados secundários foram analisados os projetos-piloto da Comissão Europeia. A análise demonstra que as comunidades locais de energia são a principal aplicação da blockchain, com aplicações adjacentes como trocas de energia P2P, contratos e contadores inteligentes, comércio de carbono e gestão da rede. Os principais benefícios associados são a transparência, a integridade, a automatização da rede e a promoção das fontes de energia renováveis. Os obstáculos estão principalmente associados à estrutura centralizada dos atuais sistemas energéticos. Concluímos que o valor é criado e capturado através da proveniência, transparência, monetização, tokenização e integração de dados em plataformas blockchain. Os novos modelos de negócio incluem a descentralização e a fusão entre a produção e o consumo de energia, gerando um novo elemento neste sector, o prosumer. Fundamental para uma implementação bem sucedida de comunidades locais de energia que permitam o comércio de energia e de ativos entre pares

Exploring auction based energy trade with the support of MAS and blockchain technology

This document describes a simulation of the local energy market with support of multi-agent approach and blockchain technology. The investigated points include blockchain technology and its applications, Ethereum platform and smart contracts as a tool for storing data of operations and creating assets, multi-agent approach to model the local energy market. The document explores building a solution for proposed problem with blockchain technology, agent interactions on the simulated market and auction models, that provide sustainability and profit for the local energy market overall

Framework for Electric Vehicles and Photovoltaic Synergies

Historically road transport has been exclusively dominated by petrol and diesel engines. Both alternatives are proved to be unsustainable due to their environmental impacts and the limited nature of their primary resources. Today’s transportation sector in the European Union (EU) accounts for 23% of CO2 emissions, 72% of which is being emitted by road transport. The European Union’s CO2 emission regulation for new cars, has come as a response to set emission performance limits for new passenger cars with the goal of establishing a road map change for automotive sector. Furthermore, the EU has set challenging targets to reduce greenhouse gas emissions by 40% in 2030 (relative to emissions in 1990) and for energy consumed to be generated at least with 27% from renewable sources in 2030. As regards energy efficiency, the 2030 framework also indicated that the cost-effective delivery of the greenhouse gas emissions reduction target for 2030 would require increased energy savings of the order of 27%. The renewable energy directive particularly identified: technological innovation, energy efficiency and contribution of renewable energy sources in transport sector as one of the most effective tools in reaching the expected targets in terms of sustainability and security of the supply. In such context it is obvious that reaching these challenges will be certainly depending on the rollout of Electric Vehicles (EV) as a mean of sustainable transport, higher penetration of distributed renewable energy sources. One consequential challenge will consist in accommodating such paradigm in the most cost-efficient fashion through active involvement of customer and better flexibility of the demand. This report highlights the current trends and expected evolution in the EU in term of electromobility, Photovoltaic (PV) systems and smart grids, with the aim of identifying mutual synergies aiming at enabling: energy efficiency, sustainable transport and higher share of renewable energy sources in the final energy mix. A technical conceptual architecture for integration of EV facilities and distributed generation sources in the context of smart grid is proposed to identify the predictable penetration limits of PV systems and EV users.JRC.F.3-Energy Security, Systems and Marke

Understanding potential users of energy community information system:a thematic analysis

Abstract. The continuing global growth of energy consumers, the war in Europe, and climate change are the driving factors for energy revolution. One solution to this concerning issue has been the transformation of energy consumers to become energy producers. Prosumers can be grouped to establish energy communities. Prosumers, energy communities, and other distributed energy resources (DERs) are possible sustainable energy resources that can be connected to the smart grid. The literature review of existing research about smart grids, distributed energy resources, and energy communities, is conducted to gain a better understanding of the complex system and its stakeholders. The Second part of the literature review follows the behaviour of the potential smart grid users and its recent studies. The research questions focus on understanding energy prosumer’s perspectives on information system usage in order to discover the advantages and disadvantages of potential information system within an energy community context. The data were gathered from semi-structured interviews with people who voluntarily replied to application forms which were distributed prior to this study. Qualitative research methods were chosen to be used. A thematic analysis was conducted and as a result a thematic map in which two main themes, 15 sub-themes, and 25 codes were identified. It was discovered that positive user experience, desired functionalities, monitoring, economic benefits, user interface, beneficial information, and platform availability were the driving factors seen as an advantage of the potential information system. On the other hand, data leaks, undesired functionalities, energy community problems, and negative user experience were seen as disadvantages of the information system. This study contributes to the field of sustainable human-computer interaction and the findings of this thesis can be used as a foundation for future research and to design and develop the smart grids from the prosumer’s perspective. Due to several requests from participants, the text of the thesis has been written with accessibility in mind, so that the text does not require special expertise in the field of sustainable human-computer interaction

Prosumer behaviour in emerging electricity systems

This dissertation investigates the interface between technology and society in the emerging electricity systems and in particular the role of the energy prosumer in the energy transition. It contributes to the understanding of the role of consumers in emerging electricity systems within the current EU energy policy context where consumer active participation is regarded as "a prerequisite for managing the energy transition successfully and in a cost-effective way". Emerging energy systems are characterized by a high level of complexity, especially for what concerns the behaviour of social actors. Social actors interact through physical and social networks by sharing information and learning from one another through social interactions. These interactions determine self-organization and emergent behaviours in energy consumption patterns and practices. I argue that the best suited tool to study emergent behaviours in energy consumption patterns and practices, and to investigate how consumers' preferences and choices lead to macro behaviours is agent based modelling. To build a sound characterization of the energy prosumer, I review the current social psychology and behavioural theories on sustainable consumption and collect evidence from EU energy prosumers surveys, studies and demand side management pilot projects. I employ these findings to inform the development of an agent based model of the electricity prosumer, Subjective Individual Model of Prosumer – SIMP, and its extended version, SIMP-N, that includes the modelling of the social network. I apply SIMP and SIMP-N models to study the emergence in consumer systems and how values and beliefs at consumer level (as defined by social psychology and behavioural theories and informed by empirical evidence) and social dynamics lead to macro behaviours. More specifically, I explore the diffusion of smart grid technologies enabled services among a population of interacting prosumers and evaluate the impact of such diffusion on individual and societal performance indicators under different policy scenarios and contextual factors. The analysis of the simulation results provides interesting insights on how different psychological characteristics, social dynamics and technological elements can strongly influence consumers' choices and overall system performance. I conclude proposing a framework for an integrated approach to modelling emerging energy systems and markets that extend the SIMP model to also include markets, distribution system operator and the electricity network