Implementing flexible demand: Real-time price vs. market integration

Florian Kühnlenz, Pedro H.J. Nardelli, Santtu Karhinen and Rauli Svento

Energy, 2018, vol. 149, issue C, 550-565

Abstract: This paper proposes an agent-based model that combines both spot and balancing electricity markets. From this model, we develop a multi-agent simulation to study the integration of the consumers' flexibility into the system. Our study identifies the conditions that real-time prices may lead to higher electricity costs, which in turn contradicts the usual claim that such a pricing scheme reduces cost.

Keywords: Real-time pricing; Day-ahead market; Balancing market; Market design; Demand response; Smart grid (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (14)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:149:y:2018:i:c:p:550-565

DOI: 10.1016/j.energy.2018.02.024

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