and ideas into the energy market, but the very nature of the market means that this will likely be a fairly slow process. “One thing you have to remember is that at the European level, the integrated electricity market has to go through a lot of compromise to achieve consensus among all members, which makes bringing disruptive ideas in fairly difficult,” he explains. “This is made even more difficult when you consider that the electricity market is actually not entirely linked to the actual operation of the system. Finally, the present lack of understanding about the effects of bringing renewables into the system makes it harder to agree upon a solution. Academics are giving conflicting opinions about the best course of action, which makes the likelihood of decision makers acting upon their ideas less likely.”
Changing behaviour, changing market As the evidence piles up about the negative
effects of excessive
is so much information out there that it is sometimes difficult to know how to manipulate it in a way that can give you new insights,” he says. For the data that is not available, there are a number of
statistical methods can be used to fill in the gaps.
Future electricity markets The design of Europe’s energy market currently uses simplified zones that don’t truly represent the transmission network used for sharing electricity. Using these simplified zones comes at a cost, however. In countries such as the US, the transmission network is represented as accurately as possible, with prices set at every node of the network. It is possible that by using a system such as this in the future, Europe could cut losses in social welfare. Pinson and his team have been attempting to quantify the potential loss in social welfare that arises from using the current system, and have been simulating whether other systems could be more effective as more renewables are introduced. Pinson is keen to help facilitate the introduction of disruptive technologies
www.projectsmagazine.eu.com that
consumerism on the planet, there is a growing trend towards actively making lifestyle changes to try and counteract the damage being caused. Renewable energy sources are now being rapidly introduced, but the next real paradigm shift could occur in terms of demand rather than supply. ‘Prosumers’ — those who produce electricity themselves via solar panels etc. but also consume — have been talked about a lot, but changes in how and when energy is consumed could prove to be even more disruptive. If the behaviour of consumers
of energy alters
significantly, the market will be forced to alter itself to accommodate them. Encouraging people to change their
behaviour is not easy, however. Pinson and his colleagues have been working on another project that is helping consumers
become more
proactive by using automated technology that reacts to the changing price of energy or controls a building’s heating. “The problem you find is that even if you fully automate something for someone, they still want to play with it and adjust it!” says Pinson. “People do not like to think that their comfort is being affected, so it is a challenge to try
and behaviour.” ★ maintain changes in 47
AT A GLANCE Project Information
Project Title: ‘5s’ – Future Electricity Markets
Project Objective: Ambitious objectives in terms of renewable energy generation will inevitably induce a paradigm shift in the way electric energy is produced, exchanged and consumed. Future electricity markets must be able to optimally deal with the dynamics and uncertainties of renewable energy generation, as well as with dynamic and flexible offers on the demand side. They should fairly re-distribute the increase in social welfare while providing enough returns to electricity producers for them to make appropriate investments. It is the core objective of the ‘5s’ project to forge the scientific and technical core for such future electricity markets to become a reality
Project Duration and Timing: 1.4.2013 until 1.10.2017 (4 years 1/2)
Project Funding: Danish Council for Strategic Research, 11MDKK
Project Partners: Technical University of Denmark, University of Copenhagen, Copenhagen Business School,
Energinet.dk, Danish energy Association, Norwegian University of Science and Technology
MAIN CONTACT
Prof. Pierre Pinson Pierre Pinson is a Professor at the Centre for Electric Power and Energy (CEE) of the Technical university of Denmark (DTU). He holds a
M.Sc. In Applied Mathematics and a PhD. In Energetics from Ecole de Mines de Paris (France). His main research interests are centred around the proposal and application of mathematical methods for electricity markets and power systems operations, including forecasting. He has published extensively in some of the leading journals in meteorology, power systems engineering, statistics and operations research.
Contact: Tel: +45 2398 3221 Email:
ppin@dtu.dk
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