Energy exchange among heterogeneous prosumers under price uncertainty

Marta Castellini, Luca Di Corato, Michele Moretto and Sergio Vergalli

Energy Economics, 2021, vol. 104, issue C

Abstract: In this paper, we provide a real options model framing prosumers’ investment in photovoltaic plants. This is presented in a Smart Grid context where the exchange of energy among prosumers is possible. We determine the optimal size of the photovoltaic installations based on the influence the self-consumption profiles on the exchange of energy among prosumers. We calibrate the model using figures relative to the Northern Italy energy market and investigate the investment decision allowing for different prosumer profiles and consider several combinations of their individual energy demand and supply. Our findings show that the shape of individual energy demand and supply curves is crucial to the exchange of energy among prosumers, and that there could be circumstances under which no exchange occurs.

Keywords: Smart grids; Renewable energy sources; Real options; Prosumer; Peer to peer energy trading (search for similar items in EconPapers)
JEL-codes: C61 D81 Q42 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Working Paper: Energy exchange among heterogeneous prosumers under price uncertainty (2021)
Working Paper: Energy exchange among heterogeneous prosumers under price uncertainty (2021)
Working Paper: Energy exchange among heterogeneous prosumers under price uncertainty (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:104:y:2021:i:c:s0140988321005041

DOI: 10.1016/j.eneco.2021.105647

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