ISE - Comunicações em actas de encontros científicos internacionais
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Browsing ISE - Comunicações em actas de encontros científicos internacionais by Author "Algarvio, Hugo"
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- 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.
- 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.
- A Double Pricing and Penalties “Separated” Imbalance Settlement Mechanism to Incentive Self Balancing of Market PartiesPublication . Algarvio, Hugo; Couto, António; Estanqueiro, AnaABSTRACT: Increasing penetrations of variable renewable energy sources increase the usage and costs of reserves due to their stochastic nature. As Balance Responsible Parties all market participants pay the balancing costs of their imbalances according to the imbalance settlement mechanism of each market zone. The European balancing markets and the imbalance settlement mechanisms still have different rules across Europe, but normally, the prices of upward and downward regulation are higher and lower than spot prices, respectively, originating penalties. Against this background, this work presents an alternative “Separated” imbalance settlement mechanism that consists of unbalanced parties paying/receiving directly the costs/revenues of the balancing markets needed to balance them. In this mechanism, the net costs/revenues of Transmission System Operators with energy balancing mechanisms are zero. Furthermore, by separating the payment of penalties between unbalanced directions, this mechanism also incentive unbalanced parties to self-control their dispatch, mitigating part of their deviations. Two case studies have been presented to test the application of this mechanism in Portugal and Spain, comparing its outputs with those of the mechanisms in place in these countries during 2019. Outputs from the studies prove the benefit of using this mechanism to reduce penalties, mainly in the case of active market players that can partly control their dispatch.
- Hydro-wind balance in daily electricity markets : a case-studyPublication . Algarvio, Hugo; Lopes, Fernando; Santana, JoãoABSTRACT: 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-peak periods), when the demand is lower, contributing to a reduction of the market price. Hydroelectric power plants use off-peak periods to pump water, and produce energy in the periods of a 24 hour day where the prices of electricity are higher (peak periods). This paper presents a case study aiming at analyzing the behavior of hydroelectric power producers—that is, in power systems with large renewable generation, producers typically use the periods of the day with lower energy prices for pumping, and the other periods (with higher energy prices) to produce electricity. The simulations are performed using MATREM (for Multi-Agent Trading in Electricity Markets). The results confirm (and rebate) the typical behavior of hydroelectric power producers.
- Integration of renewable energy in markets: analysis of key European and American electricity marketsPublication . Algarvio, Hugo; Lopes, Fernando; Santana, JoãoABSTRACT: 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 renewable sources increased significantly. This paper analyses the structure and operation of two European markets and two American markets. The analysis highlights that the design, rules and characteristics of most markets are still not completely adapted to power systems with high levels of variable renewable energy. Accordingly, the paper proposes some recommendations to foster the integration of renewable generation.
- A Methodology for Dynamic Procurement of Secondary Reserve Capacity in Power Systems with Significant vRES PenetrationsPublication . Algarvio, Hugo; Couto, António; Estanqueiro, AnaABSTRACT: The European pathway to carbon neutrality indicates strong investments in variable renewable energy sources. Demand-side and variable renewable players rely on forecasts to participate in day-ahead markets closing between 12 and 37 hours ahead of real-time operation. As such, the further from the real-time operation those forecasts are provided, the higher their errors and the uncertainty. Deviations from the market schedules are balanced using real-time reserves. Traditionally, transmission system operators (TSOs) use a symmetrical procurement of up and down reserves based on the expected demand. This work considers the computation of a dynamic up and down procurement of secondary capacities by considering the expected deviations, using the day-ahead programmed and expected dispatches of variable renewables, demand, other technologies, and the cross-border capacities. The study uses operational open data from the Spanish TSO from 2019 to 2022. The proposed methodology allows increasing the usage of the up and down secondary capacities by almost 13% and 8%, respectively, freeing up 11% of the allocated resources, on average.
- Participation of wind power producers in intra-day markets : a case-studyPublication . Rocha, Tomás; Algarvio, Hugo; Lopes, Fernando; Pronto, Anabela; Santana, JoãoABSTRACT: 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, particularly intra-day markets. The case-study is carried out with the help of the MATREM system. The preliminary results indicate a reduction of the deviations of WPPs, but also a decreasing in their remuneration. Thus, the results highlight to some extent the importance of new market mechanisms to enable the active participation of WPPs in markets, without support policies.
- Potential impact of load curtailment on the day-ahead Iberian market : a preliminary analysisPublication . Rodrigues, Francisco; Algarvio, Hugo; Lopes, Fernando; Pronto, Anabela; Santana, JoãoABSTRACT: 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, because the energy price is above a given threshold. It presents a study on the Iberian market, conducted with the help of an agent-based simulation tool, called MATREM. The results are very favorable to the adoption of the load curtailment strategy (as a consequence of the enrollment in different DR programs).
- Reduction of the Market Splitting Occurrences: A Dynamic Line Rating Approach for the 2030 Iberian Day-ahead Market ScenariosPublication . Algarvio, Hugo; Couto, António; Estanqueiro, Ana; Carvalho, Rui; Santos, Gabriel; Faia, Ricardo; Faria, Pedro; Vale, ZitaABSTRACT: Typically, Transmission System Operators apply power flow models with Seasonal Line Rating prescriptions to compute the ampacity of power lines, in a process that enables to obtain the cross-border capacity for trading between different countries or market zones. These seasonal-dependent models rely on fixed conservative meteorological conditions throughout the year, underestimating the real-time transmission capacity of overhead lines. This can contribute to market splitting occurrences, i.e., a situation where the cleared power flow between different market zones of the coupled market is superior to the cross-border capacity, separating markets, which brings economic losses to market participants. Dynamic Line Rating analysis allows computing the overhead lines’ capacity considering the weather conditions that influence the power line's thermal dynamics. This work presents a study that applies the CIGRÉ 601 model in cross-border power lines between Portugal and Spain to quantify the reduction in market splitting occurrences in the day-ahead Iberian market considering based on the installed capacities from the 2030 national energy and climate plans. Comparing with the seasonal approach, dynamic line rating enabled to reduce the number of market splitting occurrences from 1512 to 514, reducing the electricity costs by more than 1% and the price difference from 19 to 12 €/MWh.