IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v260y2022ics0360544222017649.html
   My bibliography  Save this article

A review of current analytical methods, modelling tools and development frameworks applicable for future retail electricity market design

Author

Listed:
  • Hampton, Harrison
  • Foley, Aoife

Abstract

Retail electricity markets require development to become transparently functioning, operate in near real-time, permit the integration of smart technology, improve customer engagement, better reflect wholesale prices, be driven by optimal sustainability metrics and mitigate against unexpected price spikes, so that society transitions to net zero in a just manner. This study postulates that it is essential that future retail electricity markets are designed by cross-linking current analytical approaches and integrating proprietary and open-source modelling tools, by adopting the latest development frameworks across data science, software development, cloud computing and Internet of Things interconnectivity. Current analytical methods applicable for retail electricity market design are reviewed and multi-criteria decision analyses are applied to assess modelling tool and development framework effectiveness. A key finding of this study is that current analytical methods applied in the research domain are typically segregated or siloed. As current analytical methods tend to focus on specific clusters, such as electricity customer profiling, demand response and dynamic pricing, peer-to-peer electricity trading, interconnectivity of Internet of Things devices and distribution-level power dynamics, rather than the integration of these clusters and how each analytical method interacts with each other. Similarly, this study finds that modelling tools are also typically segregated or siloed, focusing on energy system planning, electricity market simulation, power system simulation and energy consumption analysis. To provide the necessary tools to design future retail electricity markets, this study suggests that robust modelling tool integration is required.

Suggested Citation

  • Hampton, Harrison & Foley, Aoife, 2022. "A review of current analytical methods, modelling tools and development frameworks applicable for future retail electricity market design," Energy, Elsevier, vol. 260(C).
    • Handle: RePEc:eee:energy:v:260:y:2022:i:c:s0360544222017649
    DOI: 10.1016/j.energy.2022.124861
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544222017649
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2022.124861?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Al Kez, Dlzar & Foley, Aoife M. & Ahmed, Faraedoon W. & O'Malley, Mark & Muyeen, S.M., 2021. "Potential of data centers for fast frequency response services in synchronously isolated power systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 151(C).
    2. Després, Jacques & Hadjsaid, Nouredine & Criqui, Patrick & Noirot, Isabelle, 2015. "Modelling the impacts of variable renewable sources on the power sector: Reconsidering the typology of energy modelling tools," Energy, Elsevier, vol. 80(C), pages 486-495.
    3. Vinhoza, Amanda & Schaeffer, Roberto, 2021. "Brazil's offshore wind energy potential assessment based on a Spatial Multi-Criteria Decision Analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 146(C).
    4. McIlwaine, Neil & Foley, Aoife M. & Morrow, D. John & Al Kez, Dlzar & Zhang, Chongyu & Lu, Xi & Best, Robert J., 2021. "A state-of-the-art techno-economic review of distributed and embedded energy storage for energy systems," Energy, Elsevier, vol. 229(C).
    5. Zhang, Tao & Li, Yiteng & Chen, Yin & Feng, Xiaoyu & Zhu, Xingyu & Chen, Zhangxing & Yao, Jun & Zheng, Yongchun & Cai, Jianchao & Song, Hongqing & Sun, Shuyu, 2021. "Review on space energy," Applied Energy, Elsevier, vol. 292(C).
    6. Massoud Amin, 2013. "The smart-grid solution," Nature, Nature, vol. 499(7457), pages 145-147, July.
    7. Sun, Cheng & Wang, Yun & McMurtrey, Michael D. & Jerred, Nathan D. & Liou, Frank & Li, Ju, 2021. "Additive manufacturing for energy: A review," Applied Energy, Elsevier, vol. 282(PA).
    8. Khasani, & Prasidha, Willie & Widyatama, Arif & Aziz, Muhammad, 2021. "Energy-saving and environmentally-benign integrated ammonia production system," Energy, Elsevier, vol. 235(C).
    9. Tarroja, Brian & Hittinger, Eric, 2021. "The value of consumer acceptance of controlled electric vehicle charging in a decarbonizing grid: The case of California," Energy, Elsevier, vol. 229(C).
    10. Tim Braunholtz-Speight & Maria Sharmina & Edward Manderson & Carly McLachlan & Matthew Hannon & Jeff Hardy & Sarah Mander, 2020. "Business models and financial characteristics of community energy in the UK," Nature Energy, Nature, vol. 5(2), pages 169-177, February.
    11. Tao Chen & Qais Alsafasfeh & Hajir Pourbabak & Wencong Su, 2017. "The Next-Generation U.S. Retail Electricity Market with Customers and Prosumers—A Bibliographical Survey," Energies, MDPI, vol. 11(1), pages 1-17, December.
    12. Yang, Xi & Pang, Jun & Teng, Fei & Gong, Ruixin & Springer, Cecilia, 2021. "The environmental co-benefit and economic impact of China's low-carbon pathways: Evidence from linking bottom-up and top-down models," Renewable and Sustainable Energy Reviews, Elsevier, vol. 136(C).
    13. Pinto, Giuseppe & Piscitelli, Marco Savino & Vázquez-Canteli, José Ramón & Nagy, Zoltán & Capozzoli, Alfonso, 2021. "Coordinated energy management for a cluster of buildings through deep reinforcement learning," Energy, Elsevier, vol. 229(C).
    14. Zhongfu Tan & Ye Yang & Pinxi Wang & Yilun Li, 2021. "Charging Behavior Analysis of New Energy Vehicles," Sustainability, MDPI, vol. 13(9), pages 1-20, April.
    15. Lu, Renzhi & Hong, Seung Ho & Zhang, Xiongfeng, 2018. "A Dynamic pricing demand response algorithm for smart grid: Reinforcement learning approach," Applied Energy, Elsevier, vol. 220(C), pages 220-230.
    16. Fotouhi Ghazvini, Mohammad Ali & Ramos, Sergio & Soares, João & Castro, Rui & Vale, Zita, 2019. "Liberalization and customer behavior in the Portuguese residential retail electricity market," Utilities Policy, Elsevier, vol. 59(C), pages 1-1.
    17. Kumar Biswajit Debnath & Monjur Mourshed, 2018. "Author Correction: Challenges and gaps for energy planning models in the developing-world context," Nature Energy, Nature, vol. 3(6), pages 528-528, June.
    18. Murrant, Daniel & Radcliffe, Jonathan, 2018. "Assessing energy storage technology options using a multi-criteria decision analysis-based framework," Applied Energy, Elsevier, vol. 231(C), pages 788-802.
    19. Kumar Biswajit Debnath & Monjur Mourshed, 2018. "Challenges and gaps for energy planning models in the developing-world context," Nature Energy, Nature, vol. 3(3), pages 172-184, March.
    20. Binod Prasad Koirala & Ellen C. J. van Oost & Esther C. van der Waal & Henny J. van der Windt, 2021. "New Pathways for Community Energy and Storage," Energies, MDPI, vol. 14(2), pages 1-8, January.
    21. Motlagh, Omid & Berry, Adam & O'Neil, Lachlan, 2019. "Clustering of residential electricity customers using load time series," Applied Energy, Elsevier, vol. 237(C), pages 11-24.
    22. Wayes Tushar & Tapan K. Saha & Chau Yuen & David Smith & Peta Ashworth & H. Vincent Poor & Subarna Basnet, 2020. "Challenges and prospects for negawatt trading in light of recent technological developments," Nature Energy, Nature, vol. 5(11), pages 834-841, November.
    23. Campos-Guzmán, Verónica & García-Cáscales, M. Socorro & Espinosa, Nieves & Urbina, Antonio, 2019. "Life Cycle Analysis with Multi-Criteria Decision Making: A review of approaches for the sustainability evaluation of renewable energy technologies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 104(C), pages 343-366.
    24. Yue, Xiufeng & Deane, J.P. & O'Gallachoir, Brian & Rogan, Fionn, 2020. "Identifying decarbonisation opportunities using marginal abatement cost curves and energy system scenario ensembles," Applied Energy, Elsevier, vol. 276(C).
    25. Li, Zhenpeng & Ma, Tao, 2020. "Peer-to-peer electricity trading in grid-connected residential communities with household distributed photovoltaic," Applied Energy, Elsevier, vol. 278(C).
    26. Foley, A.M. & Ó Gallachóir, B.P. & Hur, J. & Baldick, R. & McKeogh, E.J., 2010. "A strategic review of electricity systems models," Energy, Elsevier, vol. 35(12), pages 4522-4530.
    27. Sharma, Tarun & Glynn, James & Panos, Evangelos & Deane, Paul & Gargiulo, Maurizio & Rogan, Fionn & Gallachóir, Brian Ó, 2019. "High performance computing for energy system optimization models: Enhancing the energy policy tool kit," Energy Policy, Elsevier, vol. 128(C), pages 66-74.
    28. Cheng, Liang & Zhang, Fangli & Li, Shuyi & Mao, Junya & Xu, Hao & Ju, Weimin & Liu, Xiaoqiang & Wu, Jie & Min, Kaifu & Zhang, Xuedong & Li, Manchun, 2020. "Solar energy potential of urban buildings in 10 cities of China," Energy, Elsevier, vol. 196(C).
    29. Barjak, F. & Lindeque, J. & Koch, J. & Soland, M., 2022. "Segmenting household electricity customers with quantitative and qualitative approaches," Renewable and Sustainable Energy Reviews, Elsevier, vol. 157(C).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Moez Krichen & Yasir Basheer & Saeed Mian Qaisar & Asad Waqar, 2023. "A Survey on Energy Storage: Techniques and Challenges," Energies, MDPI, vol. 16(5), pages 1-29, February.
    2. Navajas Fernando, 2023. "Electricity rate structure design in Latin America: Where do we stand? Where should we go?," Asociación Argentina de Economía Política: Working Papers 4676, Asociación Argentina de Economía Política.
    3. Samuli Honkapuro & Jasmin Jaanto & Salla Annala, 2023. "A Systematic Review of European Electricity Market Design Options," Energies, MDPI, vol. 16(9), pages 1-26, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hofbauer, Leonhard & McDowall, Will & Pye, Steve, 2022. "Challenges and opportunities for energy system modelling to foster multi-level governance of energy transitions," Renewable and Sustainable Energy Reviews, Elsevier, vol. 161(C).
    2. Omar Al-Ani & Sanjoy Das, 2022. "Reinforcement Learning: Theory and Applications in HEMS," Energies, MDPI, vol. 15(17), pages 1-37, September.
    3. Sun, Yinong & Frew, Bethany & Dalvi, Sourabh & Dhulipala, Surya C., 2022. "Insights into methodologies and operational details of resource adequacy assessment: A case study with application to a broader flexibility framework," Applied Energy, Elsevier, vol. 328(C).
    4. Yazdanie, M. & Orehounig, K., 2021. "Advancing urban energy system planning and modeling approaches: Gaps and solutions in perspective," Renewable and Sustainable Energy Reviews, Elsevier, vol. 137(C).
    5. Savvidis, Georgios & Siala, Kais & Weissbart, Christoph & Schmidt, Lukas & Borggrefe, Frieder & Kumar, Subhash & Pittel, Karen & Madlener, Reinhard & Hufendiek, Kai, 2019. "The gap between energy policy challenges and model capabilities," Energy Policy, Elsevier, vol. 125(C), pages 503-520.
    6. Paul Wolfram & Qingshi Tu & Niko Heeren & Stefan Pauliuk & Edgar G. Hertwich, 2021. "Material efficiency and climate change mitigation of passenger vehicles," Journal of Industrial Ecology, Yale University, vol. 25(2), pages 494-510, April.
    7. Thimet, P.J. & Mavromatidis, G., 2022. "Review of model-based electricity system transition scenarios: An analysis for Switzerland, Germany, France, and Italy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 159(C).
    8. Seyid Abdellahi Ebnou Abdem & Jérôme Chenal & El Bachir Diop & Rida Azmi & Meriem Adraoui & Cédric Stéphane Tekouabou Koumetio, 2023. "Using Logistic Regression to Predict Access to Essential Services: Electricity and Internet in Nouakchott, Mauritania," Sustainability, MDPI, vol. 15(23), pages 1-28, November.
    9. Das, Laya & Garg, Dinesh & Srinivasan, Babji, 2020. "NeuralCompression: A machine learning approach to compress high frequency measurements in smart grid," Applied Energy, Elsevier, vol. 257(C).
    10. Ringkjøb, Hans-Kristian & Haugan, Peter M. & Solbrekke, Ida Marie, 2018. "A review of modelling tools for energy and electricity systems with large shares of variable renewables," Renewable and Sustainable Energy Reviews, Elsevier, vol. 96(C), pages 440-459.
    11. Dimitrios Vamvakas & Panagiotis Michailidis & Christos Korkas & Elias Kosmatopoulos, 2023. "Review and Evaluation of Reinforcement Learning Frameworks on Smart Grid Applications," Energies, MDPI, vol. 16(14), pages 1-38, July.
    12. Karami, Mahdi & Madlener, Reinhard, 2022. "Business models for peer-to-peer energy trading in Germany based on households’ beliefs and preferences," Applied Energy, Elsevier, vol. 306(PB).
    13. Blanco, Herib & Leaver, Jonathan & Dodds, Paul E. & Dickinson, Robert & García-Gusano, Diego & Iribarren, Diego & Lind, Arne & Wang, Changlong & Danebergs, Janis & Baumann, Martin, 2022. "A taxonomy of models for investigating hydrogen energy systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 167(C).
    14. Ahmed, Faraedoon & Al Kez, Dlzar & McLoone, Seán & Best, Robert James & Cameron, Ché & Foley, Aoife, 2023. "Dynamic grid stability in low carbon power systems with minimum inertia," Renewable Energy, Elsevier, vol. 210(C), pages 486-506.
    15. Carlos Roberto de Sousa Costa & Paula Ferreira, 2023. "A Review on the Internalization of Externalities in Electricity Generation Expansion Planning," Energies, MDPI, vol. 16(4), pages 1-19, February.
    16. Chang, Miguel & Thellufsen, Jakob Zink & Zakeri, Behnam & Pickering, Bryn & Pfenninger, Stefan & Lund, Henrik & Østergaard, Poul Alberg, 2021. "Trends in tools and approaches for modelling the energy transition," Applied Energy, Elsevier, vol. 290(C).
    17. Zhang, Jiaqi & Tian, Guang & Chen, Xiangyu & Liu, Pei & Li, Zheng, 2023. "A chance-constrained programming approach to optimal planning of low-carbon transition of a regional energy system," Energy, Elsevier, vol. 278(PA).
    18. Kraan, O. & Kramer, G.J. & Nikolic, I., 2018. "Investment in the future electricity system - An agent-based modelling approach," Energy, Elsevier, vol. 151(C), pages 569-580.
    19. Oikonomou, Konstantinos & Tarroja, Brian & Kern, Jordan & Voisin, Nathalie, 2022. "Core process representation in power system operational models: Gaps, challenges, and opportunities for multisector dynamics research," Energy, Elsevier, vol. 238(PC).
    20. Marta Daroń & Monika Górska, 2023. "Relationships between Selected Quality Tools and Energy Efficiency in Production Processes," Energies, MDPI, vol. 16(13), pages 1-20, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:energy:v:260:y:2022:i:c:s0360544222017649. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/energy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.