An agent-based simulation evaluating the impact of consumer-trader information asymmetry on electricity market participation success

Nicolas Fatras*, Zheng Grace Ma, Bo Nørregaard Jørgensen

*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingArticle in proceedingsResearchpeer-review

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Abstract

Energy traders can help industrial consumers become active participants in electricity markets by optimising their operations based on market prices. However, operational changes can cause production losses if the energy trader does not respect the consumer’s operational requirements due to lack of information on the process’ operational properties. This study evaluates the impact of information asymmetry between an industrial process and an energy trader by comparing savings from market bid optimisation with production losses. An agent-based model is developed to represent consumer-trader interactions and the Value of Deviated Load (VoDL) is introduced to represent load deviation costs communicated to the energy trader. The model applied to a power-to-X facility in the Danish market shows that production losses can be reduced by informing the energy trader of the process’ VoDL. Such information is particularly important to provide when incentives from electricity prices are low compared to the production loss value.
Original languageEnglish
Title of host publication2023 19th International Conference on the European Energy Market (EEM)
Number of pages6
PublisherIEEE
Publication date2023
ISBN (Electronic)979-8-3503-1258-4
DOIs
Publication statusPublished - 2023
Event2023 19th International Conference on the European Energy Market (EEM) - Lappeenranta, Finland
Duration: 6. Jun 20238. Jun 2023

Conference

Conference2023 19th International Conference on the European Energy Market (EEM)
Country/TerritoryFinland
CityLappeenranta
Period06/06/202308/06/2023
SeriesInternational Conference on the European Energy Market, Proceedings
ISSN2165-4077

Keywords

  • agent-based modeling
  • demand response
  • market strategy
  • information asymmetry
  • collaborative intelligence

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