The design of the Internal Energy Market in relation energy supply security and climate change

The Clingendael International Energy Programme (CIEP), the Loyola de Palacio Chair on EU Energy Policy of the Robert Schuman Centre of Advanced Studies (European University Institute), the Fondazione Eni Enrico Mattei (FEEM) and Wilton Park Conferences (WPC) organize a four-tier program for discussing the potential for a smart EU Energy Policy. The Florence workshop is then the first one in a series of four where academics will discuss the various interactions between the three objectives of the EU Energy Policy with stakeholders from governments, regulators and the industry. This workshop adressed the internal energy market design and its consequences for energy supply security and climate change policies. The workshop gathered over on day and a half 42 experts to discuss current problems and possible solutions for a smart EU Energy Policy.Smart energy policy; 3rd EU directive; Market design; Renewable energy; gas reform

The Design of the Internal Energy Market in Relation to Energy Supply Security and Climate Change

The Clingendael International Energy Programme (CIEP), the Loyola de Palacio Chair on EU Energy Policy of the Robert Schuman Centre of Advanced Studies (European University Institute), the Fondazione Eni Enrico Mattei (FEEM) and Wilton Park Conferences (WPC) organize a four-tier program for discussing the potential for a smart EU Energy Policy. The Florence workshop is then the first one in a series of four where academics will discuss the various interactions between the three objectives of the EU Energy Policy with stakeholders from governments, regulators and the industry. This workshop addressed the internal energy market design and its consequences for energy supply security and climate change policies. The workshop gathered over one day and a half 42 experts to discuss current problems and possible solutions for a smart EU Energy Policy.Smart energy policy,3d EU directive,Market design,Renewable energy,gas reform

Market design for a reliable ~100% renewable electricity system: Deliverable D3.5

Project TradeRES - New Markets Design & Models for 100% Renewable Power Systems: https://traderes.eu/about/ABSTRACT: The goal of this report is to identify in which respects the design and regulation of electricity markets needs to be improved in order facilitate a (nearly) completely decarbonized electricity system. It provides a basis for scoping the modeling analyses that are to be performed in subsequent work packages in the TradeRES project. These simulations will provide the basis for an update of this deliverable in the form of a more precise description of an all-renewable electricity market design. In this first iteration1 of deliverable 3.5, we analyze how the current design of electricity markets may fall short of future needs. Where there is a lack of certainty about the best market design choices, we identify alternative choices. Alternatives may concern a choice between policy intervention and no intervention or different intervention options. Section 2 outlines current European electricity market design and the key pieces of European legislation that underlie it. The European target model is zonal pricing with bidding zones that are defined as geographic areas within the internal market without structural congestion. That implies that within one bidding zone electricity can be traded without considering grid constraints and there are uniform wholesale prices in each zone. The main European markets are Nordpool, EPEX and MIBEL. Trading between zones in the European Price Coupling Region occurs through an implicit auction where price and quantity are computed for every hour of the next day, using EUPHEMIA, a hybrid algorithm for flowbased market coupling that is considered the best practice in Europe at this time.N/

Understanding Deregulated Retail Electricity Markets in the Future: A Perspective from Machine Learning and Optimization

On top of Smart Grid technologies and new market mechanism design, the further deregulation of retail electricity market at distribution level will play a important role in promoting energy system transformation in a socioeconomic way. In today’s retail electricity market, customers have very limited ”energy choice,” or freedom to choose different types of energy services. Although the installation of distributed energy resources (DERs) has become prevalent in many regions, most customers and prosumers who have local energy generation and possible surplus can still only choose to trade with utility companies.They either purchase energy from or sell energy surplus back to the utilities directly while suffering from some price gap. The key to providing more energy trading freedom and open innovation in the retail electricity market is to develop new consumer-centric business models and possibly a localized energy trading platform. This dissertation is exactly pursuing these ideas and proposing a holistic localized electricity retail market to push the next-generation retail electricity market infrastructure to be a level playing field, where all customers have an equal opportunity to actively participate directly. This dissertation also studied and discussed opportunities of many emerging technologies, such as reinforcement learning and deep reinforcement learning, for intelligent energy system operation. Some improvement suggestion of the modeling framework and methodology are included as well.Ph.D.College of Engineering & Computer ScienceUniversity of Michigan-Dearbornhttps://deepblue.lib.umich.edu/bitstream/2027.42/145686/1/Tao Chen Final Dissertation.pdfDescription of Tao Chen Final Dissertation.pdf : Dissertatio

Optimal Demand Response Strategy in Electricity Markets through Bi-level Stochastic Short-Term Scheduling

Current technology in the smart monitoring including Internet of Things (IoT) enables the electricity network at both transmission and distribution levels to apply demand response (DR) programs in order to ensure the secure and economic operation of power systems. Liberalization and restructuring in the power systems industry also empowers demand-side management in an optimum way. The impacts of DR scheduling on the electricity market can be revealed through the concept of DR aggregators (DRAs), being the interface between supply side and demand side. Various markets such as day-ahead and real-time markets are studied for supply-side management and demand-side management from the Independent System Operator (ISO) viewpoint or Distribution System Operator (DSO) viewpoint. To achieve the research goals, single or bi-level optimization models can be developed. The behavior of weather-dependent renewable energy sources, such as wind and photovoltaic power generation as uncertainty sources, is modeled by the Monte-Carlo Simulation method to cope with their negative impact on the scheduling process. Moreover, two-stage stochastic programming is applied in order to minimize the operation cost. The results of this study demonstrate the importance of considering all effective players in the market, such as DRAs and customers, on the operation cost. Moreover, modeling the uncertainty helps network operators to reduce the expenses, enabling a resilient and reliable network.A tecnologia atual na monitorização inteligente, incluindo a Internet of Things (IoT), permite que a rede elétrica ao nível da transporte e distribuição faça uso de programas de demand response (DR) para garantir a operação segura e económica dos sistemas de energia. A liberalização e a reestruturação da indústria dos sistemas de energia elétrica também promovem a gestão do lado da procura de forma otimizada. Os impactes da implementação de DR no mercado elétrico podem ser expressos pelo conceito de agregadores de DR (DRAs), sendo a interface entre o lado da oferta e o lado da procura de energia elétrica. Vários mercados, como os mercados diário e em tempo real, são estudados visando a gestão otimizada do ponto de vista do Independent System Operator (ISO) ou do Distribution System Operator (DSO). Para atingir os objetivos propostos, modelos de otimização em um ou dois níveis podem ser desenvolvidos. O comportamento das fontes de energia renováveis dependentes do clima, como a produção de energia eólica e fotovoltaica que acarretam incerteza, é modelado pelo método de simulação de Monte Carlo. Ainda, two-stage stochastic programming é aplicada para minimizar o custo de operação. Os resultados deste estudo demonstram a importância de considerar todos os participantes efetivos no mercado, como DRAs e clientes finais, no custo de operação. Ainda, considerando a incerteza no modelo beneficia os operadores da rede na redução de custos, capacitando a resiliência e fiabilidade da rede

From Packet to Power Switching: Digital Direct Load Scheduling

At present, the power grid has tight control over its dispatchable generation capacity but a very coarse control on the demand. Energy consumers are shielded from making price-aware decisions, which degrades the efficiency of the market. This state of affairs tends to favor fossil fuel generation over renewable sources. Because of the technological difficulties of storing electric energy, the quest for mechanisms that would make the demand for electricity controllable on a day-to-day basis is gaining prominence. The goal of this paper is to provide one such mechanisms, which we call Digital Direct Load Scheduling (DDLS). DDLS is a direct load control mechanism in which we unbundle individual requests for energy and digitize them so that they can be automatically scheduled in a cellular architecture. Specifically, rather than storing energy or interrupting the job of appliances, we choose to hold requests for energy in queues and optimize the service time of individual appliances belonging to a broad class which we refer to as "deferrable loads". The function of each neighborhood scheduler is to optimize the time at which these appliances start to function. This process is intended to shape the aggregate load profile of the neighborhood so as to optimize an objective function which incorporates the spot price of energy, and also allows distributed energy resources to supply part of the generation dynamically.Comment: Accepted by the IEEE journal of Selected Areas in Communications (JSAC): Smart Grid Communications series, to appea

Peer-to-peer and community-based markets: A comprehensive review

The advent of more proactive consumers, the so-called "prosumers", with production and storage capabilities, is empowering the consumers and bringing new opportunities and challenges to the operation of power systems in a market environment. Recently, a novel proposal for the design and operation of electricity markets has emerged: these so-called peer-to-peer (P2P) electricity markets conceptually allow the prosumers to directly share their electrical energy and investment. Such P2P markets rely on a consumer-centric and bottom-up perspective by giving the opportunity to consumers to freely choose the way they are to source their electric energy. A community can also be formed by prosumers who want to collaborate, or in terms of operational energy management. This paper contributes with an overview of these new P2P markets that starts with the motivation, challenges, market designs moving to the potential future developments in this field, providing recommendations while considering a test-case

Special Section on Local and Distributed Electricity Markets

Driven by the Goals of Clean Energy and Zero Carbon Emissions, the Power Industry is Undergoing Significant Transformations. the Rapid Growth of Diverse Distributed Energy Resources (DERs) at Grid Edge Such as Rooftop Photovoltaics (PVs) and Electric Vehicles is Transforming the Traditional Centralized Power Grid Management to a Decentralized, Bottom-Up, and Localized Control Paradigm. Establishing Local and Distribution-Level Electricity Markets Provides an Effective Solution to Managing Large Amounts of Small-Scale DERs. New Regulations Such as the Recent FERC Order 2222 in the U.S. Open the Door to DERs in the Wholesale Markets. through Coordinating the Local and Distribution-Level Markets with the Transmission-Level Wholesale Market, the DERs and Prosumers Can Trade Energy and Flexibility Locally with Each Other and Meanwhile Provide Energy, Flexibility and Ancillary Services to the Bulk Power Grid. during This Transition, There Are Many New Technical Challenges to Address, Calling for Innovative Ideas and Interdisciplinary Research in This Promising Direction. Advanced Information and Communication Technologies (ICT) Are Needed, as a Key Enabler, for the Development and Practical Implementation of Local and Distribution Electricity Markets. Research into Local and Distribution Markets is Strongly Interdisciplinary, Involving the State of the Art in Power Engineering, Economics, and Digital/information Technology. a Broad Spectrum of Contributors from Universities, Industry, Research Laboratories and Policy Makers is Sought to Develop and Present Solutions and Technologies that Will Facilitate and Advance Practical Applications and Implementations of Local and Distribution-Level Electricity Markets to Uncover the Values of DERs