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Simple and linear bids in multi-agent daily electricity markets: a preliminary report

Publication . Algarvio, Hugo; Lopes, Fernando; Santana, João

ABSTRACT: 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, and reduce the cleared energy levels of existing plants. This paper presents an overview of an agent-based system, called MATREM, to simulate electricity markets. Special attention is devoted to a case study that aims at analyzing the behavior of a simulated day-ahead market in situations with increasing levels of wind generation, and also comparing market schedules and prices in situations involving either simple and linear bids.

2018Conference object

Open access

Integration of renewable energy in markets: analysis of key European and American electricity markets

Publication . Algarvio, Hugo; Lopes, Fernando; Santana, João

ABSTRACT: 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.

2019Conference object

Open access

Hydro-wind balance in daily electricity markets : a case-study

Publication . Algarvio, Hugo; Lopes, Fernando; Santana, João

ABSTRACT: 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.

2019Conference object

Open access

Potential impact of load curtailment on the day-ahead Iberian market : a preliminary analysis

Publication . Rodrigues, Francisco; Algarvio, Hugo; Lopes, Fernando; Pronto, Anabela; Santana, João

ABSTRACT: 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).

2019Conference object

Open access

Coalitions of end-use customers in retail electricity markets: a real-world case study involving five schools for children

Publication . Algarvio, Hugo; Lopes, Fernando; Santana, João

ABSTRACT: 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.

2018Conference object

Open access