Management of Local Citizen Energy Communities and Bilateral Contracting in Multi-Agent Electricity Markets
Over the last few decades, the electricity sector has experienced several changes, resulting in different electricity markets (EMs) models and paradigms. In particular, liberalization has led to the establishment of a wholesale market for electricity generation and a retail market for electricity re...
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| Format: | Article |
| Language: | English |
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MDPI AG
2021-11-01
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| Series: | Smart Cities |
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| Online Access: | https://www.mdpi.com/2624-6511/4/4/76 |
| _version_ | 1797500571628863488 |
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| author | Hugo Algarvio |
| author_facet | Hugo Algarvio |
| author_sort | Hugo Algarvio |
| collection | DOAJ |
| description | Over the last few decades, the electricity sector has experienced several changes, resulting in different electricity markets (EMs) models and paradigms. In particular, liberalization has led to the establishment of a wholesale market for electricity generation and a retail market for electricity retailing. In competitive EMs, customers can do the following: freely choose their electricity suppliers; invest in variable renewable energy such as solar photovoltaic; become prosumers; or form local alliances such as Citizen Energy Communities (CECs). Trading of electricity can be done in spot and derivatives markets, or by bilateral contracts. This article focuses on CECs. Specifically, it presents how agent-based local consumers can form alliances as CECs, manage their resources, and trade on EMs. It also presents a review of how agent-based systems can model and support the formation and interaction of alliances in the electricity sector. The CEC can trade electricity directly with sellers through private bilateral agreements. During the negotiation of private bilateral contracts, the CEC receives the prices and volumes of their members and according to its negotiation strategy, tries to satisfy the electricity demands of all members and reduce their costs for electricity. |
| first_indexed | 2024-03-10T03:05:44Z |
| format | Article |
| id | doaj.art-617040fd24af45c58d84f77e6a6bf919 |
| institution | Directory Open Access Journal |
| issn | 2624-6511 |
| language | English |
| last_indexed | 2024-03-10T03:05:44Z |
| publishDate | 2021-11-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Smart Cities |
| spelling | doaj.art-617040fd24af45c58d84f77e6a6bf9192023-11-23T10:33:23ZengMDPI AGSmart Cities2624-65112021-11-01441437145310.3390/smartcities4040076Management of Local Citizen Energy Communities and Bilateral Contracting in Multi-Agent Electricity MarketsHugo Algarvio0LNEG—National Laboratory of Energy and Geology, 1649-038 Lisbon, PortugalOver the last few decades, the electricity sector has experienced several changes, resulting in different electricity markets (EMs) models and paradigms. In particular, liberalization has led to the establishment of a wholesale market for electricity generation and a retail market for electricity retailing. In competitive EMs, customers can do the following: freely choose their electricity suppliers; invest in variable renewable energy such as solar photovoltaic; become prosumers; or form local alliances such as Citizen Energy Communities (CECs). Trading of electricity can be done in spot and derivatives markets, or by bilateral contracts. This article focuses on CECs. Specifically, it presents how agent-based local consumers can form alliances as CECs, manage their resources, and trade on EMs. It also presents a review of how agent-based systems can model and support the formation and interaction of alliances in the electricity sector. The CEC can trade electricity directly with sellers through private bilateral agreements. During the negotiation of private bilateral contracts, the CEC receives the prices and volumes of their members and according to its negotiation strategy, tries to satisfy the electricity demands of all members and reduce their costs for electricity.https://www.mdpi.com/2624-6511/4/4/76agent-based consumersalliance formationbilateral contractsCitizen Energy Communitieselectricity markets |
| spellingShingle | Hugo Algarvio Management of Local Citizen Energy Communities and Bilateral Contracting in Multi-Agent Electricity Markets Smart Cities agent-based consumers alliance formation bilateral contracts Citizen Energy Communities electricity markets |
| title | Management of Local Citizen Energy Communities and Bilateral Contracting in Multi-Agent Electricity Markets |
| title_full | Management of Local Citizen Energy Communities and Bilateral Contracting in Multi-Agent Electricity Markets |
| title_fullStr | Management of Local Citizen Energy Communities and Bilateral Contracting in Multi-Agent Electricity Markets |
| title_full_unstemmed | Management of Local Citizen Energy Communities and Bilateral Contracting in Multi-Agent Electricity Markets |
| title_short | Management of Local Citizen Energy Communities and Bilateral Contracting in Multi-Agent Electricity Markets |
| title_sort | management of local citizen energy communities and bilateral contracting in multi agent electricity markets |
| topic | agent-based consumers alliance formation bilateral contracts Citizen Energy Communities electricity markets |
| url | https://www.mdpi.com/2624-6511/4/4/76 |
| work_keys_str_mv | AT hugoalgarvio managementoflocalcitizenenergycommunitiesandbilateralcontractinginmultiagentelectricitymarkets |