Hugo Algarvio

Hugo Algarvio
Laboratório Nacional de Energia e Geologia | LNEG · Unidade de Análise Energética e Redes

PhD in Sustainable Energy Systems

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52
Publications
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365
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Publications

Publications (52)
Article
The liberalization of the electricity sector has conducted to the establishment of spot markets, derivative markets and private bilateral contracts to trade electricity, increasing the competition in the sector. Spot markets are composed of day-ahead, intraday and real-time markets, and their prices are highly volatile. Derivative markets are compo...
Article
The liberalization of the retail market of electricity increased the tariff choice of end-use consumers. Retailers compete in the retail market for customers, obtaining private portfolios of end-use consumers to manage. Retailers buy electricity at wholesale markets to feed their customers’ demands. They can use spot, derivatives, and bilateral mar...
Article
Full-text available
The worldwide targets for carbon-neutral societies increased the penetration of distributed generation and storage. Smart cities now play a key role in achieving these targets by considering the alliances of their demand and supply assets as local citizen energy communities. These communities need to have enough weight to trade electricity in whole...
Article
Full-text available
Over the last few decades, the electricity sector has experienced several changes, resulting in different electricity markets (EMs) models and paradigms. In particular, liberalization has led to the establishment of a wholesale market for electricity generation and a retail market for electricity retailing. In competitive EMs, customers can do the...
Article
Full-text available
For a holistic understanding and simulation of the energy markets, many different aspects need to modelled properly. Often no single modelling tool offers the whole picture, but a combination of methods needs to be used. A model linkage platform has been chosen previously and this deliverable describes the integration of the modelling tools used in...
Article
Full-text available
The liberalization of energy markets brought full competition to the electric power industry. In the wholesale sector, producers and retailers submit bids to day-ahead markets, where prices are uncertain, or alternatively, they sign bilateral contracts to hedge against pool price volatility. In the retail sector, retailers compete to sign bilateral...
Article
The present deliverable was developed as part of the research activities of the TradeRES project Task 4.4 - Enhancing the value of VRE on the electricity markets with advanced forecasting and ramping tools. This report presents the first version of deliverable 4.9, which consists on the description and implementation of the forecasting techniques a...
Article
Full-text available
The ambitious targets of the European Union (EU) for a greater penetration of renewable energy sources (RES) in all areas of activity have led to power systems with growing levels of variable RES (VRES) all over the EU. Considering these targets, the EU countries presented their National Energy and Climate Plans (NECP) with their expected capacity...
Article
Full-text available
Global warming contributes to the worldwide goal of a sustainable carbon-neutral society. Currently, hydroelectric, wind and solar power plants are the most competitive renewable technologies. They are limited to the primary resource availability, but while hydroelectric power plants (HPPs) can have storage capacity but have several geographical li...
Article
Driven by climate change concerns, Europe has taken significant initiatives toward the decarbonization of its energy system. The European Commission (EC) has set targets for 2030 to achieve at least 40% reduction in greenhouse gas emissions with respect to the 1990 baseline level and cover at least 32% of the total energy consumption in the Europea...
Article
Full-text available
The European Union defined ambitious targets for the production of energy from renewable energy sources. Most European markets trade now high levels of variable renewable energy (VRE). Renewable generation increases the variability and uncertainty of the net-load (i.e., demand minus VRE). To a large extent, this variability and uncertainty can be c...
Conference Paper
This article aims to assess and understand the impact of large-scale integration of the solar photovoltaic (PV) technology in the Iberian electricity market. This impact was evaluated using the projections of the Portuguese solar deployment capacity established in the National Energy and Climate Plan (NECP) 2030 and a multi-agent electricity market...
Conference Paper
Full-text available
The European Union set ambitious targets for the use of renewable energy as the main source of energy in all activity sectors, resulting on a growing renewable penetration in electricity markets. The day-ahead market of electricity closes at 12 noon (CET) and has been designed for dispatchable technologies. So, the variable renewable energy (VRE) h...
Conference Paper
Power system operators traditionally use a static transmission line rating method to ensure the electric grid operates under a pre-defined limit temperature of the conductors. This method normally assesses the maximal power capacity of each line using conservative constant weather conditions that usually underestimate the real transmission capacity...
Chapter
The European Union has been one of the major drivers of the development of renewable energy. The energy policies of most European countries have involved subsidized tariffs, such as the feed-in tariff in Portugal, the regulated tariff and the market price plus premium in Spain, and the Renewables Obligation in UK, that came into effect in 2002. Rec...
Chapter
Full-text available
The evolution of renewable energy has increased substantially over the past decade. Wind power producers (WPPs) can submit bids to energy markets, making short-term commitments to produce specific quantities of energy. This article presents a case-study to analyze the benefits of the active participation of wind power producers in energy markets, p...
Article
Full-text available
Most existing energy markets (EMs) were not designed to take into account an active participation of variable renewable energy (VRE). This situation results typically in imbalances and substantial costs in balancing markets. Such costs are reflected both in the energy and the VRE parts of the consumer tariffs. Both appropriate market products and n...
Article
Full-text available
Currently, in most European electricity markets, power bids are based on forecasts performed 12 to 36 hours ahead. Actual wind power forecast systems still lead to large errors, which may strongly impact electricity market outcomes. Accordingly, this article analyzes the impact of the wind power forecast uncertainty and the change of the day-ahead...
Chapter
The European Union has been one of the major drivers of the development of renewable energy. In Portugal, renewable generation is subject to specific licensing requirements and benefits from a feed-in-tariff. This paper pays special attention to wind and hydroelectric technologies. Typically, wind farms produce more energy during the night (off-pea...
Chapter
Demand response (DR) in electricity markets may offer a variety of financial and operational benefits. Typically, customers respond to DR events by adopting curtailment and shifting strategies. This article focuses on the former strategy and assumes that consumers are encouraged to avoid consuming electricity during specific hours of a 24 h day, be...
Chapter
Electricity markets are systems for affecting the purchase and sale of energy. Most existing markets are built on well-established principles of competition and transparency. However, their designs are based on centralized power plants with a small participation of end-use customers. During the past years, the share of electricity produced by renew...
Article
The new proposal for regulating the European Internal Market for Electricity (EIME) can motivate the harmonization of the various National markets. The process of harmonizing the day‐ahead markets (DAMs) is at an advanced stage, with an efficiency in the use of interconnectors of 86%. However, the harmonization of both intraday (IDMs) and balancing...
Article
At present, a harmonized pan‐European electricity market (EM) is a close reality. While in day‐ahead markets (DAMs) the harmonization is at an advanced stage, in balancing markets (BMs) still exist some challenging issues, notably the remuneration of imbalances: some countries have simple and clear methods, but others consider complex methods that...
Chapter
The key mechanisms for purchasing and selling electrical energy include electricity pools and bilateral contracts. This article is devoted to bilateral contracting, which is modeled as a negotiation process involving an iterative exchange of offers and counter-offers. It focuses on coalitions of end-use consumers and describes a case study involvin...
Chapter
Variable generation (VG) has several unique characteristics compared to those of traditional thermal and hydro-power plants, notably significant fixed capital costs, but near-zero or zero variable production costs. Increasing the penetration of VG tend to reduce energy prices over time, increase the occurrence of zero or negatively priced periods,...
Chapter
The electricity industry is undergoing a deep transformation as Europe moves towards a greener, healthier future—the growth of renewable generation has surpassed all expectations and demand response (DR) has emerged as a key element of market design. Most European countries have already opened their markets to the participation of demand response a...
Article
The major electricity market models include: pools, bilateral contracts and hybrid models. Pool prices tend to change quickly and variations are usually highly unpredictable. In this way, market participants can enter into bilateral contracts to hedge against pool price volatility. In bilateral contracts, market participants can set the terms and c...
Conference Paper
Electricity markets (EMs) are distributed in nature, complex and evolve continuously. The share of variable generation continue to grow and gain an increasing relevance in EMs. In most of the European countries, the day-ahead market closes at 12 UTC of the day before the day of operation. Consequently, wind power forecasts have to be made 18 to 42...
Conference Paper
Electric power systems (EPSs) are systems composed by several active agents as well as various physical and economical aspects. Electricity markets are systems for effecting the purchase and sale of electricity using supply and demand to set energy prices. This work looks at using software agents to help manage the complexity of power systems. Spec...
Chapter
Electricity markets (EMs) are a relatively new reality and also an evolving one, since both market rules and market players are constantly changing. Market participants can purchase and sell electrical energy through centralized markets and bilateral contracts. The revenue and cost certainty associated with bilateral contracts presents a number of...
Conference Paper
This article uses an agent-based system to analyze the potential impact of variable generation on wholesale electricity markets. In particular, it presents a case study to analyse the impact of both wind forecast errors and high levels of wind generation on the outcomes of the day-ahead market. The case study involves six representative days and th...
Conference Paper
The participants in energy markets (EMs) can purchase and sell electricity through a few basic instruments, notably spot markets and bilateral contracts. This work aims at using software agents to help manage the complexity of EMs. Specifically, this paper centers on contract negotiation between a single retailer and a coalition of end-use customer...
Conference Paper
This article uses an agent-based system to analyze the potential impacts of variable generation on wholesale electricity markets. Specifically, the article presents some important features of the agent-based system, introduces a method to forecast wind power, and describes a case study to analyze the impact of both wind forecast errors and high lev...
Conference Paper
Wind power is increasingly integrated into power systems through electricity markets. To make the market operation economically possible for wind power producers, the period between bids and delivery (gate closure time) is crucial. Wind power will experience larger forecast errors the longer the gate closure time. This paper presents a case study f...
Conference Paper
Electricity markets are systems for effecting the purchase and sale of electricity using supply and demand to set energy prices. Pool prices tend to change quickly and variations are usually highly unpredictable. Bilateral contracts allow market participants to set the terms and conditions of agreements independent of a market operator. This paper...
Conference Paper
Full-text available
The programs and actions to rationalize energy consumption and increase energy efficiency, such as demand-side management (DSM) and demand response (DR), are receiving increasing attention. DSM involves the selection, planning, and implementation of measures intended to have an influence on the demand or customer-side of the electric meter. DR incl...
Conference Paper
The electricity industry has undergone enormous changes and market forces drive now the price of energy. This paper focuses on retail markets in which end-use customers can choose their supplier from competing electricity retailers. Most retailers negotiate the terms and conditions of electricity contracts directly with end-use customers, although...
Conference Paper
Full-text available
Electricity markets are systems for affecting the purchase and sale of electricity using supply and demand to set energy prices. Electricity can be traded in organized markets or by negotiating forward bilateral contracts. Demand response (DR) refers to participation by customers in electricity markets, seeing and responding to prices as they chang...
Conference Paper
Electricity markets are systems for effecting the purchase and sale of electricity using supply and demand to set energy prices. Two major market models are often distinguished: pools and bilateral contracts. Pool prices tend to change quickly and variations are usually highly unpredictable. In this way, market participants often enter into bilater...
Conference Paper
Full-text available
Traditional vertically integrated power utilities around the world have evolved from monopoly structures to open markets that promote competition among suppliers and provide consumers with a choice of services. Market forces drive the price of electricity and reduce the net cost through increased competition. Electricity can be traded in both organ...
Conference Paper
Full-text available
The dynamism and on-going changes that the electricity markets sector is constantly suffering, enhanced by the huge increase in competitiveness, create the need of using simulation platforms to support operators, regulators, and the involved players in understanding and dealing with this complex environment. This paper presents an enhanced electric...
Conference Paper
The electricity industry throughout the world, which has long been dominated by vertically integrated utilities, has experienced major changes. Deregulation, unbundling, wholesale and retail wheeling, and real-time pricing were abstract concepts a few years ago. Today market forces drive the price of electricity and reduce the net cost through incr...
Conference Paper
In competitive energy markets, customers can freely choose their energy suppliers. The electricity trade can be done in organized markets or using bilateral contracts between customers and suppliers. In the latter case, market participants set the terms and conditions of agreements independent of the market operator. They often enter into bilateral...
Conference Paper
In competitive energy markets (EMs), customers can freely choose their energy suppliers. The electricity trade can be done in organized markets or using forward bilateral contracts. Currently, there are several simulation tools based on multi-agent techniques that allow modeling, partially or globally, competitive EMs. The existing tools allow simu...
Conference Paper
The novelty of the evolving electric power industry implies that researchers lack insight into numerous open problems. There is a growing need for advanced modeling approaches that simulate the behavior of electricity markets over time. Accordingly, this article looks at using software agents to help manage the complexity of electricity markets, pa...
Conference Paper
Full-text available
The electricity industry throughout the world, which has long been dominated by vertically integrated utilities, has experienced major changes. Deregulation, unbundling, wholesale and retail wheeling, and real-time pricing were abstract concepts a few years ago. Today market forces drive the price of electricity and reduce the net cost through incr...
Conference Paper
Electricity markets (EMs) are a constantly evolving reality, since both market players and market rules are constantly changing. Two major market models have been considered: pools and bilateral transactions. Pool prices tend to change quickly and variations are usually highly unpredictable. In this way, market participants can enter into bilateral...
Conference Paper
Full-text available
Electricity markets are systems for effecting the purchase and sale of electricity using supply and demand to set energy prices. Two major market models are often distinguished: pools and bilateral transactions. Pool prices tend to change quickly and variations are usually highly unpredictable. In this way, market participants can enter into bilate...
Conference Paper
The novelty of the evolving electric power industry implies that researchers lack insight into numerous open problems. There is a growing need for advanced modeling approaches that simulate the behavior of electricity markets over time. Accordingly, this article looks at using software agents to help manage the complexity of electricity markets, pa...

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Cited By

Projects

Projects (5)
Project
The TradeRES project will develop and test innovative electricity market designs that can meet society’s needs of a (near) 100% renewable power system. A long-term sustainable market design needs to provide efficient operational and investment incentives for an electricity system that is characterized by a high share of variable renewable energy sources (VREs) by increasing integration with other energy sectors, e.g. transport and hydrogen, and by increasing participation of flexible electricity demand from households to industrial consumers. Furthermore, this market design needs to provide security of supply by ensuring sufficient controllable electricity generation capacity whilst being economically efficient. Finally, despite the variability of solar and wind energy, the market risks should be allocated in an efficient and socially accepted way. This should also safeguard that consumers are not exposed to extreme swings in their energy expenses. In this sense, this project aims at finding market designs that are economically efficient in the above setting. To achieve these goals the project will use an iterative methodology and involve the key players from the energy sector in order to achieve and test the most suitable market designs. The project TradeRES – Tools for the Design and Modelling of New Markets and Negotiation Mechanisms for a ~100% Renewable European Power System, is funded by the EU framework programme for research and innovation Horizon 2020 under the call H2020-LC-SC3-2019-ES-SCC.
Project
R&D project with the following goals: (i) to study emerging market design elements to help manage the variability and uncertainty of renewable generation, (ii) to extend the MATREM system with these market elements, and (iii) to test the effectiveness of these market elements in specific situations. The project has been cross-fed by the background of F. Lopes on energy markets and renewable energy sources, as well as various researchers of LNEG (e.g. Hugo Algarvio). Also, the project has involved a strict collaboration with the Technical University of Lisbon and the NOVA University of Lisbon, resulting in the supervision of various students (and the corresponding thesis), who performed valuable work on energy markets and their computational simulation using software agents. Main Results: This is an ongoing project. The results already obtained are as follows. The project has examined the operation and structure of most European markets and concluded that they are not complying yet with the recent EU legislation. Also, it has investigated: (i) the participation of wind power producers in day-ahead and balancing markets, and examined the effect of shortening these markets on their effectiveness, (ii) the well-known merit order effect of the intensive deployment of wind power in Portugal, and its impact on the consumer´s cost of the wind feed-in tariff, and (iii) the impact of different levels of demand response on the Iberian market prices, during the period 2014-2017, and the potential benefits for market participants and retail customers. The project has led to the book ‘Energy Markets with Increasing levels of Renewable Generation: Structure, Operation, Agent-based Simulation and Emerging Designs´, published by Springer in 2018. Several journal articles and conference papers were published and a number of Master Thesis were completed. The markets supported by MATREM system were improved and the system was extended with new market products.
Project
Development of an operational tool for the Dynamic Line Rating (DLR) analysis of potentially congested electrical networks to allow an optimal integration of renewable power in a cost-efficient way. The OptGRID project (and tool developed) will demonstrate the benefits of using Dynamic Line Rating (DLR) techniques namely in terms of: 1) increasing the levels of renewable penetration (avoided curtailment) in the power system; 2) reducing the number of market splitting hours in the Electricity Market and consequent impact on electricity market prices. The goals of the project will be achieved through the application of its tools to different case studies bearing in mind current and future scenarios of high renewable power penetration levels in the power system, as well as different constraints occurring in the operation of the Electricity Market, which may cause the activation of market splitting mechanism.