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New Approaches and Valuation in Electricity Markets: 2nd Edition

A special issue of Energies (ISSN 1996-1073). This special issue belongs to the section "C: Energy Economics and Policy".

Deadline for manuscript submissions: closed (10 December 2025) | Viewed by 1281

Special Issue Editors


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Guest Editor
Department of Statistical Sciences, University of Padova, 35121 Padova, Italy
Interests: energy economics; energy markets; environmental economics; applied statistics; applied economics; economic evaluation of investments projects; real option evaluation; public economics and utility regulation; carbon emissions
Special Issues, Collections and Topics in MDPI journals

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Guest Editor
Department of Industrial Engineering, University of Padova, 35131 Padova, Italy
Interests: electric power systems; smart grids; active distribution networks; electricity and ancillary services markets
Special Issues, Collections and Topics in MDPI journals

Special Issue Information

Dear Colleagues,

The energy transition process requires a structural change in the energy markets and in the electrical systems, in order to include more players and increase the penetration of renewable energy sources, increasing efficiency and maintain system security.

Local electricity markets (energy markets, balancing markets, or single markets) see the presence of several agents whose roles must be redesigned considering market forces. Distribution system operators are managing grids where multiple agents produce and consume energy; small and medium agents shall be allowed to participate in the market and new agents can decide to invest in production (or in aggregation). Among new market agents, energy communities are new associations of consumers and prosumers for a more inclusive energy market. To fully exploit the potential of such new actors from both technical and economic standpoints, market and management frameworks should address their inclusion within the power system with clear rules and procedures.

Policy targets need evaluation tools, test models, and operational guidelines that ensure that objectives are achieved efficiently and fairly.

Topics of interest for publication in this Special Issue include but are not limited to the following:

  • Design of electricity markets;
  • New players in the energy markets;
  • Business models for aggregators;
  • The role of DSOs in future energy markets;
  • Investment evaluation in new energy markets;
  • Policy evaluation in the energy sector;
  • Impact of renewable production on electricity markets;
  • Efficiency in energy systems;
  • TSO-DSO coordination schemes;
  • Flexibility market impact on distribution system management;
  • Control frameworks for local energy aggregators.

Dr. Marina Bertolini
Dr. Massimiliano Coppo
Guest Editors

Manuscript Submission Information

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Keywords

  • local electricity markets
  • renewable integration
  • balancing markets
  • energy communities
  • cost–benefit analysis for energy projects
  • energy aggregators

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Related Special Issue

Published Papers (1 paper)

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35 pages, 2174 KB  
Systematic Review
The Real Option Approach to Investment Decisions in Hybrid Renewable Energy Systems: A Systematic Literature Review
by Anna Carozzani and Chiara D’Alpaos
Energies 2025, 18(20), 5535; https://doi.org/10.3390/en18205535 - 21 Oct 2025
Viewed by 1109
Abstract
In recent years, the global energy crisis, concerns about energy security and grid parity, and the pressure to develop policies for reducing the environmental impact of anthropogenic activities have accelerated investments in renewable energy. A growing body of literature applies the real options [...] Read more.
In recent years, the global energy crisis, concerns about energy security and grid parity, and the pressure to develop policies for reducing the environmental impact of anthropogenic activities have accelerated investments in renewable energy. A growing body of literature applies the real options approach (ROA) to renewable energy projects, recognizing its value in capturing irreversibility and flexibility under uncertainty. The present work provides a detailed state-of-the-art analysis on the adoption of real options to evaluate mixes of energy technologies for power generation, with a special emphasis on investments in hydropower and solar photovoltaics. The objective is to assess current applications, identify knowledge gaps, and outline priorities for advancing decision-making tools in this domain. We performed a systematic literature review following the PRISMA protocol, identifying 38 papers from the Scopus database up to February 2024. Eligible studies were peer-reviewed articles in English applying the ROA to power generation, following a technology selection process; policy evaluation or research and development studies were excluded. The selected papers were analyzed to identify trends over time and space, adopted energy technology, types of real options with valuation methods, and sources of uncertainty. The present paper also discusses the main findings and emerging gaps, providing an overview of hybrid renewable energy systems. Our analysis suggests that, despite the significant advances achieved in this area, further research is needed to exploit the potential of the ROA in investment decisions for combined renewable energy technologies, especially in cases where internal uncertainty and community perspectives need to be explicitly considered. By linking the ROA to the challenges of mixed renewable energy projects, this study enhances understanding of investment decision-making under uncertainty and identifies pathways toward more robust and adaptive project evaluation. Full article
(This article belongs to the Special Issue New Approaches and Valuation in Electricity Markets: 2nd Edition)
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