IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v12y2019i21p4128-d281549.html
   My bibliography  Save this article

Electricity Market Empowered by Artificial Intelligence: A Platform Approach

Author

Listed:
  • Yueqiang Xu

    (Martti Ahtisaari Institute, University of Oulu, 90014 Oulu, Finland)

  • Petri Ahokangas

    (Martti Ahtisaari Institute, University of Oulu, 90014 Oulu, Finland)

  • Jean-Nicolas Louis

    (Water, Energy and Environmental Engineering Research Unit, Faculty of Technology, University of Oulu, 90014 Oulu, Finland)

  • Eva Pongrácz

    (Water, Energy and Environmental Engineering Research Unit, Faculty of Technology, University of Oulu, 90014 Oulu, Finland)

Abstract

Artificial intelligence (AI) techniques and algorithms are increasingly being utilized in energy and renewable research to tackle various engineering problems. However, a majority of the AI studies in the energy domain have been focusing on solving specific technical issues. There is limited discussion on how AI can be utilized to enhance the energy system operations, particularly the electricity market, with a holistic view. The purpose of the study is to introduce the platform architectural logic that encompasses both technical and economic perspectives to the development of AI-enabled energy platforms for the future electricity market with massive and distributed renewables. A constructive and inductive approach for theory building is employed for the concept proposition of the AI energy platform by using the aggregated data from a European Union (EU) Horizon 2020 project and a Finnish national innovation project. Our results are presented as a systemic framework and high-level representation of the AI-enabled energy platform design with four integrative layers that could enable not only value provisioning but also value utilization for a distributed energy system and electricity market as the new knowledge and contribution to the extant research. Finally, the study discusses the potential use cases of the AI-enabled energy platform.

Suggested Citation

  • Yueqiang Xu & Petri Ahokangas & Jean-Nicolas Louis & Eva Pongrácz, 2019. "Electricity Market Empowered by Artificial Intelligence: A Platform Approach," Energies, MDPI, vol. 12(21), pages 1-21, October.
    • Handle: RePEc:gam:jeners:v:12:y:2019:i:21:p:4128-:d:281549
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/12/21/4128/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/12/21/4128/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. David J. Teece & Greg Linden, 2017. "Business models, value capture, and the digital enterprise," Journal of Organization Design, Springer;Organizational Design Community, vol. 6(1), pages 1-14, December.
    2. Zhao, Hai-xiang & Magoulès, Frédéric, 2012. "A review on the prediction of building energy consumption," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(6), pages 3586-3592.
    3. Gawer, Annabelle, 2014. "Bridging differing perspectives on technological platforms: Toward an integrative framework," Research Policy, Elsevier, vol. 43(7), pages 1239-1249.
    4. Saebi, Tina & Foss, Nicolai J., 2015. "Business models for open innovation: Matching heterogeneous open innovation strategies with business model dimensions," European Management Journal, Elsevier, vol. 33(3), pages 201-213.
    5. Jean‐Charles Rochet & Jean Tirole, 2006. "Two‐sided markets: a progress report," RAND Journal of Economics, RAND Corporation, vol. 37(3), pages 645-667, September.
    6. Nikoleta Andreadou & Evangelos Kotsakis & Marcelo Masera, 2018. "Smart Meter Traffic in a Real LV Distribution Network," Energies, MDPI, vol. 11(5), pages 1-27, May.
    7. Teece, David J., 2018. "Profiting from innovation in the digital economy: Enabling technologies, standards, and licensing models in the wireless world," Research Policy, Elsevier, vol. 47(8), pages 1367-1387.
    8. Ghoddusi, Hamed & Creamer, Germán G. & Rafizadeh, Nima, 2019. "Machine learning in energy economics and finance: A review," Energy Economics, Elsevier, vol. 81(C), pages 709-727.
    9. Zahraee, S.M. & Khalaji Assadi, M. & Saidur, R., 2016. "Application of Artificial Intelligence Methods for Hybrid Energy System Optimization," Renewable and Sustainable Energy Reviews, Elsevier, vol. 66(C), pages 617-630.
    10. Wanda J. Orlikowski & C. Suzanne Iacono, 2001. "Research Commentary: Desperately Seeking the “IT” in IT Research—A Call to Theorizing the IT Artifact," Information Systems Research, INFORMS, vol. 12(2), pages 121-134, June.
    11. Lu, Renzhi & Hong, Seung Ho, 2019. "Incentive-based demand response for smart grid with reinforcement learning and deep neural network," Applied Energy, Elsevier, vol. 236(C), pages 937-949.
    12. Jean-Charles Rochet & Jean Tirole, 2003. "Platform Competition in Two-Sided Markets," Journal of the European Economic Association, MIT Press, vol. 1(4), pages 990-1029, June.
    13. Mathias Uslar & Sebastian Rohjans & Christian Neureiter & Filip Pröstl Andrén & Jorge Velasquez & Cornelius Steinbrink & Venizelos Efthymiou & Gianluigi Migliavacca & Seppo Horsmanheimo & Helfried Bru, 2019. "Applying the Smart Grid Architecture Model for Designing and Validating System-of-Systems in the Power and Energy Domain: A European Perspective," Energies, MDPI, vol. 12(2), pages 1-40, January.
    14. Grünewald, Philipp H. & Cockerill, Timothy T. & Contestabile, Marcello & Pearson, Peter J.G., 2012. "The socio-technical transition of distributed electricity storage into future networks—System value and stakeholder views," Energy Policy, Elsevier, vol. 50(C), pages 449-457.
    15. Paul R. Milgrom & Steven Tadelis, 2018. "How Artificial Intelligence and Machine Learning Can Impact Market Design," NBER Chapters, in: The Economics of Artificial Intelligence: An Agenda, pages 567-585, National Bureau of Economic Research, Inc.
    16. David Evans & Richard Schmalensee, 2007. "The Industrial Organization of Markets with Two-Sided Platforms," CPI Journal, Competition Policy International, vol. 3.
    17. Miltiadis D. Lytras & Vijay Raghavan & Ernesto Damiani, 2017. "Big Data and Data Analytics Research: From Metaphors to Value Space for Collective Wisdom in Human Decision Making and Smart Machines," International Journal on Semantic Web and Information Systems (IJSWIS), IGI Global, vol. 13(1), pages 1-10, January.
    18. William Vickrey, 1961. "Counterspeculation, Auctions, And Competitive Sealed Tenders," Journal of Finance, American Finance Association, vol. 16(1), pages 8-37, March.
    19. Andoni, Merlinda & Robu, Valentin & Flynn, David & Abram, Simone & Geach, Dale & Jenkins, David & McCallum, Peter & Peacock, Andrew, 2019. "Blockchain technology in the energy sector: A systematic review of challenges and opportunities," Renewable and Sustainable Energy Reviews, Elsevier, vol. 100(C), pages 143-174.
    20. Kwok Tai Chui & Miltiadis D. Lytras & Anna Visvizi, 2018. "Energy Sustainability in Smart Cities: Artificial Intelligence, Smart Monitoring, and Optimization of Energy Consumption," Energies, MDPI, vol. 11(11), pages 1-20, October.
    21. Romain Gandia & Guy Parmentier, 2017. "Optimizing value creation and value capture with a digital multi-sided business model," Post-Print hal-01592885, HAL.
    22. Macedo, M.N.Q. & Galo, J.J.M. & de Almeida, L.A.L. & de C. Lima, A.C., 2015. "Demand side management using artificial neural networks in a smart grid environment," Renewable and Sustainable Energy Reviews, Elsevier, vol. 41(C), pages 128-133.
    23. Jha, Sunil Kr. & Bilalovic, Jasmin & Jha, Anju & Patel, Nilesh & Zhang, Han, 2017. "Renewable energy: Present research and future scope of Artificial Intelligence," Renewable and Sustainable Energy Reviews, Elsevier, vol. 77(C), pages 297-317.
    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. Vangelis Marinakis & Themistoklis Koutsellis & Alexandros Nikas & Haris Doukas, 2021. "AI and Data Democratisation for Intelligent Energy Management," Energies, MDPI, vol. 14(14), pages 1-14, July.
    2. Heymann, Fabian & Milojevic, Tatjana & Covatariu, Andrei & Verma, Piyush, 2023. "Digitalization in decarbonizing electricity systems – Phenomena, regional aspects, stakeholders, use cases, challenges and policy options," Energy, Elsevier, vol. 262(PB).
    3. Thomas Pownall & Iain Soutar & Catherine Mitchell, 2021. "Re-Designing GB’s Electricity Market Design: A Conceptual Framework Which Recognises the Value of Distributed Energy Resources," Energies, MDPI, vol. 14(4), pages 1-26, February.
    4. Nallapaneni Manoj Kumar & Aritra Ghosh & Shauhrat S. Chopra, 2020. "Power Resilience Enhancement of a Residential Electricity User Using Photovoltaics and a Battery Energy Storage System under Uncertainty Conditions," Energies, MDPI, vol. 13(16), pages 1-26, August.

    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. Alaimo, Cristina & Kallinikos, Jannis & Vallderama-Venegas, E, 2020. "Platforms as service ecosystems: lessons from social media," LSE Research Online Documents on Economics 101474, London School of Economics and Political Science, LSE Library.
    2. Yuki Inoue & Masataka Hashimoto & Takeshi Takenaka, 2019. "Effectiveness of Ecosystem Strategies for the Sustainability of Marketplace Platform Ecosystems," Sustainability, MDPI, vol. 11(20), pages 1-33, October.
    3. Rodolphe Durand & Robert M. Grant & Tammy L. Madsen & David P. McIntyre & Arati Srinivasan, 2017. "Networks, platforms, and strategy: Emerging views and next steps," Strategic Management Journal, Wiley Blackwell, vol. 38(1), pages 141-160, January.
    4. Jan Frederic Nerbel & Markus Kreutzer, 2023. "Digital platform ecosystems in flux: From proprietary digital platforms to wide-spanning ecosystems," Electronic Markets, Springer;IIM University of St. Gallen, vol. 33(1), pages 1-20, December.
    5. Scott Duke Kominers & Alexander Teytelboym & Vincent P Crawford, 2017. "An invitation to market design," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 33(4), pages 541-571.
    6. Amelio, Andrea & Giardino-Karlinger, Liliane & Valletti, Tommaso, 2020. "Exclusionary pricing in two-sided markets," International Journal of Industrial Organization, Elsevier, vol. 73(C).
    7. Cinzia Battistella & Gianluca Murgia & Fabio Nonino, 2021. "Free-driven web-based business models," Electronic Commerce Research, Springer, vol. 21(2), pages 445-486, June.
    8. Inoue, Yuki & Tsujimoto, Masaharu, 2018. "New market development of platform ecosystems: A case study of the Nintendo Wii," Technological Forecasting and Social Change, Elsevier, vol. 136(C), pages 235-253.
    9. Panos Constantinides & Ola Henfridsson & Geoffrey G. Parker, 2018. "Introduction—Platforms and Infrastructures in the Digital Age," Information Systems Research, INFORMS, vol. 29(2), pages 381-400, June.
    10. Heiko Karle & Martin Peitz & Markus Reisinger, 2020. "Segmentation versus Agglomeration: Competition between Platforms with Competitive Sellers," Journal of Political Economy, University of Chicago Press, vol. 128(6), pages 2329-2374.
    11. Oliver Budzinski & Annika Stöhr, 2019. "Competition policy reform in Europe and Germany – institutional change in the light of digitization," European Competition Journal, Taylor & Francis Journals, vol. 15(1), pages 15-54, January.
    12. Budzinski, Oliver, 2016. "Aktuelle Herausforderungen der Wettbewerbspolitik durch Marktplätze im Internet," Ilmenau Economics Discussion Papers 103, Ilmenau University of Technology, Institute of Economics.
    13. Lapo Filistrucchi & Damien Geradin & Eric van Damme, 2012. "Identifying Two-Sided Markets," Working Papers - Economics wp2012_01.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
    14. Frauke Becker & Karen Gedenk, 2020. "Optimale nichtlineare Tarife auf zweiseitigen Medien-Märkten [Optimal Nonlinear Pricing in Two-Sided Media Markets]," Schmalenbach Journal of Business Research, Springer, vol. 72(4), pages 423-445, December.
    15. Justus Haucap & Ulrich Heimeshoff, 2014. "Google, Facebook, Amazon, eBay: Is the Internet driving competition or market monopolization?," International Economics and Economic Policy, Springer, vol. 11(1), pages 49-61, February.
    16. Yuki Inoue & Takeshi Takenaka & Takami Kasasaku & Tadafumi Tamegai & Ryohei Arai, 2023. "How to design platform ecosystems by intrapreneurs: Implications from action design research on IoT-based platform," Electronic Markets, Springer;IIM University of St. Gallen, vol. 33(1), pages 1-26, December.
    17. Peitz, Martin & Valletti, Tommaso, 2015. "Reassessing competition concerns in electronic communications markets," Telecommunications Policy, Elsevier, vol. 39(10), pages 896-912.
    18. Justus Haucap & Torben Stühmeier, 2016. "Competition and antitrust in Internet markets," Chapters, in: Johannes M. Bauer & Michael Latzer (ed.), Handbook on the Economics of the Internet, chapter 9, pages 183-210, Edward Elgar Publishing.
    19. Xing Wan & Javier Cenamor & Geoffrey Parker & Marshall Van Alstyne, 2017. "Unraveling Platform Strategies: A Review from an Organizational Ambidexterity Perspective," Sustainability, MDPI, vol. 9(5), pages 1-18, May.
    20. Paul Belleflamme & Julien Jacqmin, 2016. "An Economic Appraisal of MOOC Platforms: Business Models and Impacts on Higher Education," CESifo Economic Studies, CESifo Group, vol. 62(1), pages 148-169.

    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:gam:jeners:v:12:y:2019:i:21:p:4128-:d:281549. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.