Integração de Sistemas de Energia - ISE
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Browsing Integração de Sistemas de Energia - ISE by Author "Algarvio, Hugo"
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- Agent-based model of citizen energy communities used to negotiate bilateral contracts in electricity marketsPublication . Algarvio, HugoABSTRACT: 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 wholesale markets. Trading of electricity can be done in spot markets or by bilateral contracts involving customers and suppliers. This paper is devoted to bilateral contracting, which is modeled as a negotiation process involving an iterative exchange of offers and counter-offers. This article focuses on local citizen energy communities. Specifically, it presents team and single-agent negotiation models, where each member has its sets of strategies and tactics and also its decision model. Community agents are equipped with intra-team strategies and decision protocols. To evaluate the benefits of CECs, models of both coalition formation and management have been adapted. This paper also describes a case study on forward bilateral contracts, involving a retailer agent and three different types of citizen energy communities. The results demonstrate the benefits of CECs during the negotiation of private bilateral contracts of electricity. Furthermore, they also demonstrate that in the case of using a representative strategy, the selection of the mediator may be critical for achieving a good deal.
- Agent-based retail competition and portfolio optimization in liberalized electricity markets: A study involving real-world consumersPublication . Algarvio, Hugo; Lopes, FernandoABSTRACT: 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 contracts with end-use customers. Typically, such contracts are subject to a high-risk premium—that is, retailers request a high premium to consumers to cover their potential risk of trading energy in wholesale markets. Accordingly, consumers pay a price for energy typically higher than the wholesale market price. This article addresses the optimization of the portfolios of retailers, which are composed of end-use customers. To this end, it makes use of a risk-return optimization model based on the Markowitz theory. The article presents a simulation-based study conducted with the help of the MATREM system, involving 6 retailer agents, with different risk preferences, and 312 real-world consumers. The retailers select a pricing strategy and compute a tariff to offer to target consumers, optimize their portfolio of consumers using data from the Iberian market, sign bilateral contracts with consumers, and compute their target return during contract duration. The results support the conclusion that retail markets are more favourable to risk-seeking retailers, since substantial variations in return lead to small variations in risk. However, for a given target return, risk-averse retailers consider lower risk portfolios, meaning that they may obtain higher returns in both favourable and unfavourable situations.
- Agent-based simulation of retail electricity markets: Bilateral contracting with demand responsePublication . Lopes, Fernando; Algarvio, Hugo; Ilco, Cristina; Sousa, JorgeThe 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, particularly retail markets, towards ensuring long-term capacity sustainability. The article focuses on bilateral trading and describes some important features of an agent-based system for bilateral contracting with demand response. Special attention is devoted to two strategies for promoting demand response: a “volume management” strategy, for Buyer agents, and a “price management” strategy, for Seller agents.
- Agent-based simulation of retail electricity markets: Bilateral trading playersPublication . Lopes, Fernando; Algarvio, Hugo; Coelho, HelderThe 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 increased competition. As power markets continue to evolve, there is a growing need for advanced modeling approaches. Accordingly, this article looks at using software agents to help manage the complexity of electricity markets, particularly retail markets. The article focuses on bilateral trading and describes some important features of an agent-based system for bilateral contracting. Special attention is devoted to the characteristics and negotiation behaviour of Buyer and Seller agents.
- Automated Bilateral Trading of Energy by Alliances in Multi-Agent Electricity MarketsPublication . Algarvio, HugoABSTRACT: In liberalized markets, consumers can choose their electricity suppliers or be part of an energy community. The problem with communities is that they may not have enough weight to trade in markets, which can be overcome by forming coalitions. Electricity is traded in spot markets or through bilateral contracts involving consumers and suppliers. This paper is devoted to bilateral contracting, modeled as a negotiation process involving an iterative exchange of offers and counter-offers. It focuses on coalitions of energy communities. Specifically, it presents team and single-agent negotiation models, where each consumer has strategies, tactics, and decision models. Coalition agents are equipped with intra-team strategies and decision protocols. It also describes a study of bilateral contracts involving a seller agent and a coalition of energy communities. By allying into a coalition, members of energy communities reduced their average costs for electricity by between 2% (large consumers) and 64% (small consumers) according to their consumption. Their levelized cost reduction was 19%. The results demonstrate the power of coalitions when negotiating bilateral contracts and the benefit of a low-consumption members alliance with larger players.
- Bilateral Contracting and Price-Based Demand Response in Multi-Agent Electricity Markets: A Study on Time-of-Use TariffsPublication . Algarvio, Hugo; Lopes, FernandoABSTRACT: Electrical energy can be traded in liberalized organized markets or by negotiating private bilateral contracts. Competitive markets are central systems where market players can purchase and sell electrical energy. Bilateral contracting consists typically in a private negotiation of power over several months or years between two parties. Price-based demand response considers the active participation of consumers in electricity markets. Consumers adopt demand response programs when responding to market prices or tariffs, as they change over time. Those tariffs can be proposed by retailers by considering their load shape goals, influencing consumers to change their behavior. Consumers may adopt strategies from two different groups, namely by curtailing energy at times of high prices (e.g., peak and intermediate periods) and rescheduling energy away from those times to other times (shifting). This article considers bilateral contracting in electricity markets with demand response. It investigates how curtailment and shifting affect the energy quantity and energy cost of consumers that adopt a time-of-use tariff involving three block periods (i.e., base, intermediate and peak periods). The results indicate that consumers respond to changes in energy price according to their consumption flexibility, while retailers do not always change energy price in response to consumers' efforts to change their consumption patterns. On average, by considering a 5% consumption reduction in the intermediate and peak periods by a consumer agent, a retailer agent reduces the energy price only by 1.5%.
- Changing the day-ahead gate closure to wind power integration: a simulation-based studyPublication . Algarvio, Hugo; Couto, António; Lopes, Fernando; Estanqueiro, AnaABSTRACT: 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 market gate closure on both the market-clearing prices and the outcomes of the balancing market. To this end, it presents a simulation-based study conducted with the help of an agent-based tool, called MATREM. The results support the following conclusion: a change in the gate closure to a time closer to real-time operation is beneficial to market participants and the energy system generally.
- Characterization of new flexible players: Deliverable D3.2Publication . Chrysanthopoulos, Nikolaos; Papadaskalopoulos, Dimitrios; Strbac, Goran; Schimeczek, Christoph; Kochems, Johannes; Vries, Laurens de; Sanchez, Ingrid; Algarvio, Hugo; Couto, António; Pinto, Tiago; Hernandez-Serna, Ricardo; Johanndeiter, Silke; Estanqueiro, AnaABSTRACT: 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.
- Coalitions of end-use customers in retail electricity markets: a real-world case study involving five schools for childrenPublication . Algarvio, Hugo; Lopes, Fernando; Santana, JoãoABSTRACT: 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 involving five schools for children located in England. The schools decide to ally into a coalition to strengthen their bargaining positions and, hopefully, to obtain better tariffs. To this end, they rely on a coordinator agent, who is defined from the group of five schools, by selecting either the “most powerful” school or the “best negotiator” school. The coordinator takes decisions according to either a “majority” rule, a “consensus” rule, or an “unanimity” rule. The simulations are performed with an agent-based system, called MATREM (for Multi-agent TRading in Electricity Markets). Although preliminary, the results suggest that coalition formation and management is beneficial to end-use customers, since the price agreed in the new forward contracts is more favorable to these agents, particularly when the coordinator is the “best negotiator” agent and considers the “unanimity” decision rule.
- Comparative Analysis of Market Designs : Deliverable D5.5Publication . Couto, António; Qiu, Dawei; Sperber, Evelyn; Lezama, Fernando; Strbac, Goran; Syse, Helleik; Algarvio, Hugo; Kochems, Johannes; Wang, Ni; Chrysanthopoulos, Nikolaos; Gregorio, Noelia Martin; Faia, Ricardo; Silke, Johanndeiter