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Energy exchange among heterogeneous prosumers under price uncertainty

Author

Listed:
  • Marta Castellini

    (Università degli Studi di Brescia, Fondazione Eni Enrico Mattei)

  • Luca Di Corato

    (Ca’ Foscari University of Venice)

  • Michele Moretto

    (Università degli Studi di Padova)

  • Sergio Vergalli

    (Università degli Studi di Brescia, Fondazione Eni Enrico Mattei)

Abstract

In this paper, we provide a real options model framing prosumers’ investment in photovoltaic plants. This is presented in a Smart Grid context where the exchange of energy among prosumers is possible. We determine the optimal size of the photovoltaic installations based on the influence the self-consumption profiles on the exchange of energy among prosumers. We calibrate the model using figures relative to the Northern Italy energy market and investigate the investment decision allowing for different prosumer profiles and consider several combinations of their individual energy demand and supply. Our findings show that the shape of individual energy demand and supply curves is crucial to the exchange of energy among prosumers, and that there could be circumstances under which no exchange occurs.

Suggested Citation

  • Marta Castellini & Luca Di Corato & Michele Moretto & Sergio Vergalli, 2021. "Energy exchange among heterogeneous prosumers under price uncertainty," Working Papers 2021.25, Fondazione Eni Enrico Mattei.
    • Handle: RePEc:fem:femwpa:2021.25
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    Cited by:

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    2. Philipp Andreas Gunkel & Febin Kachirayil & Claire-Marie Bergaentzl'e & Russell McKenna & Dogan Keles & Henrik Klinge Jacobsen, 2023. "Uniform taxation of electricity: incentives for flexibility and cost redistribution among household categories," Papers 2306.11566, arXiv.org.
    3. Francesca Andreolli & Chiara D'Alpaos & Peter Kort, 2023. "Does P2P Trading Favor Investments in PV-Battery Systems?," Working Papers 2023.02, Fondazione Eni Enrico Mattei.
    4. Àlex Alonso-Travesset & Diederik Coppitters & Helena Martín & Jordi de la Hoz, 2023. "Economic and Regulatory Uncertainty in Renewable Energy System Design: A Review," Energies, MDPI, vol. 16(2), pages 1-30, January.
    5. Alberto Benato & Chiara D’Alpaos & Alarico Macor, 2022. "Possible Ways of Extending the Biogas Plants Lifespan after the Feed-In Tariff Expiration," Energies, MDPI, vol. 15(21), pages 1-23, October.
    6. Gunkel, Philipp Andreas & Kachirayil, Febin & Bergaentzlé, Claire-Marie & McKenna, Russell & Keles, Dogan & Jacobsen, Henrik Klinge, 2023. "Uniform taxation of electricity: incentives for flexibility and cost redistribution among household categories," Energy Economics, Elsevier, vol. 127(PB).

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    More about this item

    Keywords

    Smart Grids; Renewable Energy Sources; Real Options; Prosumer; Peer to Peer Energy Trading;
    All these keywords.

    JEL classification:

    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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