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A transition to a sustainable energy system is essential. In this context, smart grids represent the future of power systems for efficiently integrating renewable energy sources and active consumer participation. Recently, different studies were performed that defined the conceptual architecture of power systems and their agents. However, these con...
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Electric vehicles (EVs) are pivotal in the global shift towards sustainable energy systems. As EV adoption rises, effective integration into the power grid becomes vital. Vehicle-to-grid (V2G) operations, enabling bidirectional power flow between EVs and the grid, enhance grid resilience and leverage EVs as distributed energy resources. This paper...
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... The power system is composed of multiple actors performing specific roles [20]. Figure 1 depicts the agents that can intervene in the electricity markets, connected by the wholesale and retail markets. ...
... The Transmission System Operator (TSO) owns and manages the transmission grid. Hence, it is a natural monopoly and is highly reg-ulated [20]. The TSO is also in charge of the market settlements, predicting demand to control the evolution and develop the transmission grid and scheduling the operation of production facilities. ...
... Researchers expect the creation of local electricity markets (LEM). LEM will implement local trading or peer-to-peer [20] and require their market operator to enable more dynamic electricity trading. ...
Renewable energy sources such as PV solar or wind power are intermittent and non-dispatchable. Massive integration of these resources into the electric mix poses some challenges to meeting power generation with demand. Hence, improving power generation forecasting has raised much interest. This work assesses the market value of enhanced PV solar power generation forecasting. Then, we analyse the different agents present in the electricity system. We link the studied agents to the proposed market values based on both analyses. Improving the accuracy of RES forecasting has massive potential as the sector grows and new agents arise. It can have reactive values like reducing imbalances or proactive values such as participating in intraday markets or exercising energy arbitrage. However, accurate forecasting can also lead to opportunistic values that can be exploited by malicious agents if they are not adequately regulated.
... The power system is composed of multiple actors performing specific roles [20]. Figure 1 depicts the agents that can intervene in the electricity markets, connected by the wholesale and retail markets. ...
... The Transmission System Operator (TSO) owns and manages the transmission grid. Hence, it is a natural monopoly and is highly reg-ulated [20]. The TSO is also in charge of the market settlements, predicting demand to control the evolution and develop the transmission grid and scheduling the operation of production facilities. ...
... Researchers expect the creation of local electricity markets (LEM). LEM will implement local trading or peer-to-peer [20] and require their market operator to enable more dynamic electricity trading. ...
Renewable energy sources such as PV solar or wind power are intermittent and nondispatchable.
Massive integration of these resources into the electric mix poses some challenges to meeting power generation with demand. Hence, improving power generation forecasting has raised much interest. This work assesses the market value of enhanced PV solar power generation
forecasting. Then, we analyse the different agents present in the electricity system. We link the studied agents to the proposed market values based on both analyses. Improving the accuracy of RES forecasting has massive potential as the sector grows and new agents arise. It can have reactive values like reducing imbalances or proactive values such as participating in intraday markets or exercising energy arbitrage. However, accurate forecasting can also lead to opportunistic values that can be exploited by malicious agents if they are not adequately regulated.
... The transformation of the electricity sector is mainly based on the digitalization of the power system, such as the installation of smart meters that establish bidirectional communications between consumers and the system operator. This transformation also results from the emergence of new agents, such as demand aggregators, storage systems, and virtual power plants (VPPs), which ensure the security and quality of the electricity supply given the growing introduction of renewable energy [3]. ...
In recent years, the integration of distributed generation in power systems has been accompanied by new facility operations strategies. Thus, it has become increasingly important to enhance management capabilities regarding the aggregation of distributed electricity production and demand through different types of virtual power plants (VPPs). It is also important to exploit their ability to participate in electricity markets to maximize operating profits.
This review article focuses on the classification and in-depth analysis of recent studies that propose VPP models including interactions with different types of energy markets. This classification is formulated according to the most important aspects to be considered for these VPPs. These include the formulation of the model, techniques for solving mathematical problems, participation in different types of markets, and the applicability of the proposed models to real case studies. From the analysis of the studies, it is concluded that the most recent models tend to be more complete and realistic in addition to featuring greater diversity in the types of electricity markets in which VPPs participate. The aim of this review is to identify the most profitable VPP scheme to be applied in each regulatory environment. It also highlights the challenges remaining in this field of study.
... The proposed design was guided by a smart energy system (SES) approach which coordinates across the three pillars of energy (electricity, mobility and heat) to identify synergies between these in order to provide an optimal solution to both the individual sector, and the overall energy system [43,44]. As such, multiple alterations to the electricity market design are proposed which facilitate the integration of services, i.e., flexibility, from both the heat and mobility sector [6,[43][44][45][46]. Therefore, the proposed design promotes the belief that a provider of a service should be able to access the market based upon the provision of said service, not basing market access on the characteristics of the underlying technology. ...
... Local balancing can be facilitated through the deployment of generation and demand in proximity on the network. This removes the distance that electrons would otherwise travel and possibly breach network capacity in doing so, thus leading to a more efficient use of the network [9,20,21,45,78,81]. ...
... These benefits can be realised through the deployment of locational market [7,45]. ...
The design of electricity markets determines the technologies, services and modes of operation that can access value, consequently shaping current and future electricity landscapes. This paper highlights that the efficacy of Great Britain’s electricity market design in facilitating net zero is inadequate and must be reconfigured. The rules of the current electricity market design are remnants of an electricity sector dominated by large-scale, centralised, fossil fuel technologies. Therefore, routes to market for the provision of necessary services to support net zero, not least flexibility, are largely inaccessible for distributed energy resources and, despite their benefits to the system, are thus undervalued. Based upon a review and consolidation of 30 proposed electricity market designs from liberalised electricity sectors, this paper proposes a new electricity market design for Great Britain. This design is presented alongside a new institutional framework to aid in the efficient operation of the market. Specifically, this paper proposes a new local balancing and coordinating market located at each grid supply point (the transmission and distribution interface). This is realised through the implementation of a distributed locational marginal pricing structure which is governed by the evolution of the current distributed network operator, known as the distributed service provider (DSP). The DSP also operates a local balancing and ancillary market for their geographical area. The wholesale market is reconfigured to coordinate with these new local markets and to harmonise the actors across the distribution and transmission network.
... Nevertheless, these uses were marginal since power systems treated consumers as passive agents without the capacity to modify their loads and relied on the flexibility of fossil generators [4]. But now, when flexibility needs arise due to RES variability [2,11], thanks to the advances in Information and Communication Technologies (ICT), DSM counts as necessary infrastructure to fully participate in the system flexibility throughout Demand Response Products (DRP) [12,13]. ...
Demand response is a key element of future power systems due to its capacity to defer grid investments, improve demand participation in the market, and absorb renewable energy source variations. In this regard, demand response can play an important role in delivering ancillary services to power systems. The lack of standardization and ancillary services programs prepared for traditional generators have blocked the participation of demand in these services. Nowadays, increasing needs to ensure the security of supply, renewable fluctuations, and information and communication technology advances are boosting the interest in demand response products to deliver ancillary services. While countries have had lengthy experience with these programs, others are starting from almost zero to develop these programs. To our knowledge, no analysis or standardized comparison exists of the different parameters and prices of demand response in ancillary services among different countries. Our study reviews more than 20 power systems around the world and their programs to classify them according to standard demand response parameters. At the end of the paper we discuss the main characteristics and prices that face demand response in ancillary services markets and a series of policy recommendations to policymakers to improve the deployment on demand participation in ancillary services.
... Power reduced during any DR event (kW) ∆ 2 Power increased before DR event (kW) ∆ 3 Power increased after DR event (kW) Maximum time duration of a DR event (h) ...
... To overcome generation and consumption mismatches with massive integrations of RES, power systems will require three major changes: network reinforcement, deployment of storage and untapping demand response resources [1]. These actions will allow power systems to increase their flexibility and integrate a larger share of RES without jeopardizing their security [2]. ...
... Nevertheless, previous studies keep stating how industrial DR can provide significant benefits not only to the power system as a whole, but also to DR providers [10]. Moreover, different studies show how SMEs can deliver a large variety of flexible resources to the power system [11], especially through aggregators [2]. However, to facilitate the participation of SMEs, it remains essential to develop and make available analysis tools to industrial consumers and other agents such as aggregators or Virtual Power Plants (VPP). ...
Integration of renewable energy sources require an increase in the flexibility of power systems. Demand response is a valuable flexible resource that is not currently being fully exploited. Small and medium industrial consumers can deliver a wide range of underused flexibility resources associated with the electricity consumption in their production processes. Flexible resources should compete in liberalized operation markets to ensure the reliability of the system at a minimum cost. This paper presents a new tool to assist industrial demand response to participate in operation markets and optimize its value. The tool uses a combined physical-mathematical modelling of the industrial demand response and a Parallel Particle Swarm Optimization algorithm specifically tuned for the proposed problem to maximize the profit. The main advantages of the proposed tool are demonstrated in the paper through its application to the participation of a meat factory in the Spanish tertiary reserve market during a whole year using a quarter-hourly time resolution. The enhanced performance of the proposed tool with respect to previous methodologies is shown with these four flexible processes examples, where the maximum available profit obtained in the simultaneous consideration of all different flexible processes is computed. The flexible processes are technical and economically characterized in a way that makes the tool valid for most of the processes in the industry.
... However, it can participate in the distribution market's bidding competition [3,4], changing the interests of the internal distribution network, and having an impact on the competition mechanism of the power market. Therefore, it is important to study how distributed power generation can participate in the power market competition, and the game between various stakeholders [5]. ...
... If it exists, recorded as f is , and turn (5). (5) If there is f is or s = S, getting the optimal solution x i,s , and end of solution. ...
The volatility of a new energy output leads to bidding bias when participating in the power market competition. A pumped storage power station is an ideal method of stabilizing new energy volatility. Therefore, wind power suppliers and pumped storage power stations first form wind storage joint ventures to participate in power market competition. At the same time, middlemen are introduced, constructing an upper-level game model (considering power producers and wind storage joint ventures) that forms equilibrium results of bidding competition in the wholesale and power distribution markets. Based on the equilibrium result of the upper-level model, a lower model is constructed to distribute the profits from wind storage joint ventures. The profits of each wind storage joint venture, wind power supplier, and pumped storage power station are obtained by the Nash negotiation and the Shapely value method. Finally, a case study is conducted. The results show that the wind storage joint ventures can improve the economics of the system. Further, the middlemen can smooth the rapid fluctuation of power price in the distribution and wholesale market, maintaining a smooth and efficient operation of the electricity market. These findings provide information for the design of an electricity market competition mechanism and the promotion of new energy power generation.
... The Chinese government has launched a pilot project of an RPGIP in Shanxi province to demonstrate how an independent regional power grid works [12]. Similarly, a novel conceptual architecture, which can efficiently integrate agents, such as generators, consumers, and storage, is raised to effectively use renewable energy and distributed energy resources [13]. To effectively and efficiently integrate prosumers into competitive electricity markets is a strategic challenge for both policymakers and planners [14]. ...
Energy infrastructure construction is a top priority and focus for the Belt and Road Initiative (BRI), and this drives dramatical demand for significant energy consumption growth and investment funds in BRI countries. In response, the concept of a regional power grid of an industrial park (RPGIP) has emerged as a new energy infrastructure, where the industrial power supply, load, and grid are integrated to form a balanced and independent regional power grid. Moreover, dramatically increased market competition on the retail side of the electricity market challenges developing countries striving to achieve sustainable development of power retailers. This paper proposes that power retailers transform into energy saving companies (ESCOs) to participate in the electricity management of an RPGIP. By using a financing scheme realized by asset securitization, power retailers can smoothly participate in the construction and operation of a power system of BRI that contributes to accelerating energy infrastructure construction, the electricity management of the RPGIP, and sustainable development of power retailers in BRI countries. Furthermore, this study provides a game analysis for achieving maximum benefits of power retailers and industrial consumers in the implementation of the financing scheme.
... In the third place, different types of Demand Response (DR) strategies are considered to achieve a more reliable power supply through responsible consumer's behavior by means of energy conservation, energy efficiency, load curtailment and fuel substitution programs. Main types of demand response mechanisms are tariff pricing and economic incentives for customers [33,34]. In this instrument, customers decide when to consume. ...
... The concept of annualized cost ( ), especially for initial investment, is mathematically expressed as: In the third place, different types of Demand Response (DR) strategies are considered to achieve a more reliable power supply through responsible consumer's behavior by means of energy conservation, energy efficiency, load curtailment and fuel substitution programs. Main types of demand response mechanisms are tariff pricing and economic incentives for customers [33,34]. In this instrument, customers decide when to consume. ...
Electricity has become one of the main driving forces for development, especially in remote areas where the lack of energy is linked to poverty. Traditionally, in these areas power is supplied by grid extension projects, which are expensive, or stand-alone systems based on fossil fuels. An actual alternative to these solutions is community micro-grid projects based on distributed renewable energy sources. However, these solutions need to introduce a holistic approach in order to be successfully implemented in real cases. The main purpose of this research work is the definition and development of a comprehensive methodology to encourage the use of decentralized renewable power systems to provide power supply to non-electrified areas. The methodology follows a top-down approach. Its main novelty is that it interlinks a macro and micro analysis dimension, considering not only the energy context of the country where the area under study is located and its development towards a sustainable scenario; but also the potential of renewable power generation, the demand side management opportunities and the socio-economic aspects involved in the final decision on what renewable energy solution would be the most appropriate for the considered location. The implementation of this methodology provides isolated areas a tool for sustainable energy development based on an environmentally friendly and socially participatory approach. Results of implementing the methodology in a case study showed the importance of introducing a holistic approach in supplying power energy to isolated areas, stating the need for involving all the different stakeholders in the decision-making process. Despite final raking on sustainable power supply solutions may vary from one area to another, the implementation of the methodology follows the same procedure, which makes it an inestimable tool for governments, private investors and local communities.
