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The Next-Generation Retail Electricity Market in the Context of Distributed Energy Resources: Vision and Integrating Framework

Author

Listed:
  • Josue Campos do Prado

    (Department of Electrical and Computer Engineering, University of Nebraska-Lincoln, Lincoln, NE 68588-0511, USA)

  • Wei Qiao

    (Department of Electrical and Computer Engineering, University of Nebraska-Lincoln, Lincoln, NE 68588-0511, USA)

  • Liyan Qu

    (Department of Electrical and Computer Engineering, University of Nebraska-Lincoln, Lincoln, NE 68588-0511, USA)

  • Julio Romero Agüero

    (Quanta Technology, Houston, TX 77056-6175, USA)

Abstract

The increasing adoption of distributed energy resources (DERs) and smart grid technologies (SGTs) by end-user retail customers is changing significantly both technical and economic operations in the distribution grid. The next-generation retail electricity market will promote decentralization, efficiency, and competitiveness by accommodating existing and new agents through new business models and transactive approaches in an advanced metering infrastructure (AMI). However, these changes will bring several technical challenges to be addressed in transmission and distribution systems. Considerable activities have been carried out worldwide to study the impacts of integrating DERs into the grid and in the wholesale electricity market. However, the big vision and framework of the next-generation retail market in the context of DERs is still unclear. This paper aims to present a brief review of the present retail electricity market, some recent developments, and a comprehensive vision of the next-generation retail electricity market by describing its expected characteristics, challenges, needs, and future research topics to be addressed. A framework of integrating retail and wholesale electricity markets is also presented and discussed. The proposed vision and framework particularly highlight the necessity of new business models and regulatory initiatives to establish decentralized markets for DERs at the retail level as well as advances in technology and infrastructure necessary to allow the widespread use of DERs in active and effective ways.

Suggested Citation

  • Josue Campos do Prado & Wei Qiao & Liyan Qu & Julio Romero Agüero, 2019. "The Next-Generation Retail Electricity Market in the Context of Distributed Energy Resources: Vision and Integrating Framework," Energies, MDPI, vol. 12(3), pages 1-24, February.
    • Handle: RePEc:gam:jeners:v:12:y:2019:i:3:p:491-:d:203348
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    References listed on IDEAS

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    Cited by:

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    2. Nallapaneni Manoj Kumar & Aneesh A. Chand & Maria Malvoni & Kushal A. Prasad & Kabir A. Mamun & F.R. Islam & Shauhrat S. Chopra, 2020. "Distributed Energy Resources and the Application of AI, IoT, and Blockchain in Smart Grids," Energies, MDPI, vol. 13(21), pages 1-42, November.
    3. Heloísa P. Burin & Julio S. M. Siluk & Graciele Rediske & Carmen B. Rosa, 2020. "Determining Factors and Scenarios of Influence on Consumer Migration from the Regulated Market to the Deregulated Electricity Market," Energies, MDPI, vol. 14(1), pages 1-18, December.
    4. Lisardo Prieto González & Anna Fensel & Juan Miguel Gómez Berbís & Angela Popa & Antonio de Amescua Seco, 2021. "A Survey on Energy Efficiency in Smart Homes and Smart Grids," Energies, MDPI, vol. 14(21), pages 1-16, November.
    5. Yuness Badiei & Josue Campos do Prado, 2023. "Analyzing the Impact of Electricity Rates on the Feasibility of Solar PV and Energy Storage Systems in Commercial Buildings: Financial vs. Resilience Perspective," Energies, MDPI, vol. 16(5), pages 1-15, March.
    6. Davor Zoričić & Goran Knežević & Marija Miletić & Denis Dolinar & Danijela Miloš Sprčić, 2022. "Integrated Risk Analysis of Aggregators: Policy Implications for the Development of the Competitive Aggregator Industry," Energies, MDPI, vol. 15(14), pages 1-22, July.
    7. Simone Di Leo & Marta Chicca & Cinzia Daraio & Andrea Guerrini & Stefano Scarcella, 2022. "A Framework for the Analysis of the Sustainability of the Energy Retail Market," Sustainability, MDPI, vol. 14(12), pages 1-28, June.
    8. Renata Rodrigues Lautert & Wagner da Silva Brignol & Luciane Neves Canha & Olatunji Matthew Adeyanju & Vinícius Jacques Garcia, 2022. "A Flexible-Reliable Operation Model of Storage and Distributed Generation in a Biogas Power Plant," Energies, MDPI, vol. 15(9), pages 1-21, April.

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