Fair Pricing for Time-Flexible Smart Energy Markets

The adoption of new market mechanisms - vital to the better integration of flexible assets - depends on the fairness and nondiscrimination of the pricing rules. We consider a market setting with time-flexible unit energy buyers and sellers, that additionally submit their availability in time. The time-flexibility of the agents allows for...

Fairness vsWelfare: A Hybrid Congestion Aftermarket

We consider network flow congestion management modelled after electricity distribution networks. The desired consumption or production of the agents that populate such networks are determined by a higher-level (e.g. national) market mechanism, but this can lead to congestion locally. We first consider congestion solutions in the form of...

AI as an accelerator of the energy transitition: Opportunities for a carbon-free energy system

Towards Optimal Demand-Side Bidding in Parallel Auctions for Time-Shiftable Electrical Loads

Increasing electricity production from renewable energy sources has, by its fluctuating nature, created the need for more flexible demand side management. How to integrate flexible demand in the electricity system is an open research question. We consider the case of procuring the energy needs of a time-shiftable load through a set of...

Distributed coordination of deferrable loads: A real-time market with self-fulfilling forecasts

Increased uptake of variable renewable generation and further electrification of energy demand necessitate efficient coordination of flexible demand resources to make most efficient use of power system assets. Flexible electrical loads are typically small, numerous, heterogeneous and owned by self-interested agents. Considering the multi...

Fairness in Power Flow Network Congestion Management with Outer Matching and Principal Notions of Fair Division

The problem of network flow congestion occurring in power networks is increasing in severity. Especially in low-voltage networks this is a novel development. The congestion is caused for a large part by distributed and renewable energy sources introducing a complex blend of prosumers to the network. Since congestion management solutions may...

Combined Heat and Power Markets by Double-Sided Auction Mechanisms

In order to reduce CO2 emissions, energy systems using different energy carriers (e.g., heat and power) are becoming more intertwined and integrated. However, coordination between non-cooperative participants of these systems in the combined heat and power domain has been limited to single-sided auctions with one centralised seller. In this...

Forecast-based mechanisms for demand response

We study mechanisms to incentivize demand response in smart energy systems. We assume agents that can respond (reduce their demand) with some probability if they prepare prior to the real-ization of the demand. Both preparation and response incur costs to agents. Previous work studies truthful mechanisms that select a minimal set of agents to...

Degrees of Rationality in Agent-Based Retail Markets

The imperfect decision-making of human buyers participating in retail markets varies from fundamental models that assume rational economic choices: even in markets with identical items human buyers are not rational, i.e., buyers do not always choose the cheapest option. Recent developments in artificial intelligence and e-commerce enable...

Efficient balancing by effort-based activation of demand response services

We present a unified model for flexibility services in the power system, identify two existing categories (ramping and loading) and introduce a new category (stalling). Each service is characterised by duration, capacity and effort, with associated prices. We show that the effort of stalling, measurable in kWh2, is a significant cost component...

Capability-based governance patterns over the product life-cycle: an agent-based model

In recent literature, there is disagreement over the temporal pattern of vertical governance of firms over the product life-cycle. We use a novel neo-Schumpeterian agent-based simulation model to investigate emerging patterns of vertical governance for different levels of imitability and substitutability of capabilities. We find that, in the...

Incentivizing Intelligent Customer Behavior in Smart-Grids: A Risk-Sharing Tariff & Optimal Strategies

Current electricity tariffs for retail rarely provideincentives for intelligent demand response of flexiblecustomers. Such customers could otherwisecontribute to balancing supply and demand in futuresmart grids. This paper proposes an innovativerisk-sharing tariff to incentivize intelligentcustomer behavior. A two-step parameterized...

Now, later, or both: A closed-form optimal decision for a risk-averse buyer

Motivated by the energy domain, we examine a risk-averse buyer that has to purchase a fixed quantity of a continuous good. The buyer has two opportunities to buy: now or later. The buyer can spread the quantity over the two timeslots in any way, as long as the total quantity remains the same. The current price is known, but the future price...