Aided design of market mechanisms for electricity clusters
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Aided design of market mechanisms for electricity clusters Mariusz Kaleta1
© The Author(s) 2019
Abstract There are two pillars of sustainable development in the electricity sector: renewable energy and energy efficiency. Both can be addressed by a concept of electrical energy cluster, which is a local area power system that works towards self-balancing. In this paper, we consider the problem of designing the market mechanism for an electrical energy cluster. This task is complex and extensive with ill-defined constraints and criteria. Therefore, we propose the ARchitecture for Market Systems, a well-defined reference architecture that captures the entire design process and helps the designer to navigate through it. The contribution of the paper lies in structuring the cluster mechanism design problem through problem decomposition into several areas called views. Within this architecture, a mechanism is being designed by choosing parameters from the space of solutions, visualising the concept on different schemas, and applying simulation models for evaluation purposes. Based on our reference architecture, we also propose a decision support system (DSS) for the market designer. We prove the usefulness of the approach by implementing a part of the DSS concept and by presenting its application for exemplary cluster design processes. Keywords Market mechanism design · Energy clusters · DSS · Market engineering
1 Introduction There is no doubt that the electrical power sector is undergoing a transformation that will profoundly shape people lives and the future of the planet in the long term. There are many factors driving the transformation (see Fig. 1), but taken together they can be synthesised into a megatrend towards greater granularity and energy democratisation (IRENA 2019). This means the inclusion of increasingly lesser participants in the growing scope of market functioning. Enhanced granulation also means scattering
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Mariusz Kaleta [email protected] Institute of Control and Computation Engineering, Warsaw University of Technology, Nowowiejska 15/19, 00-665 Warsaw, Poland
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Increasing number of Distributed Energy Resources
Bi-direconal flow of flexibility
Demand Side Respons/ Demand Side Management
Smart grids
IoT and automaon
Electric vehicles
Micro & nano grids
Integraon of naonal markets
Distributed balancing
Fig. 1 Main factors driving the current transformation of the electricity sector
mechanisms, functions and entities, while increasing the accuracy of models and methods. For instance, the number of distributed energy resources, including renewable energy, has grown tremendously over the past few years. At the same time, technical and economic possibilities for the bi-directional flow of flexibility have emerged. As a result, renewable energy, initially bringing many burdens to grid operation, has become a new tool for effective balancing (Hirth and Ziegenhagen 2015). While all these trends create great opportunities for mankind, it is extremely important to direct e
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