Search Results (24)

The goals of the European Union towards the energy transition imply profound changes in the energy field, so as to promote sustainable energy development while fostering economic growth. To achieve these changes, the incorporation of sustainable technologies supporting decentralisation, energy efficiency, renewable energy production, and demand flexibility is of vital importance. Blockchain has the potential to change energy services towards this direction. To optimally exploit blockchain, innovative business models need to be designed, identifying the opportunities emerging from unmet needs, while also considering potential risks so as to take action to overcome them. In this context, the scope of this paper is to examine the opportunities and the risks that emerge from the adoption of blockchain in four innovative business models, while also identifying mitigation strategies to support and accelerate the energy transition, thus proposing optimal approaches of exploitation of blockchain in energy services. The business models concern Energy Performance Contracting with P4P guarantees, improved self-consumption in energy cooperatives, energy efficiency and flexibility services for natural gas boilers, and smart energy management for EV chargers and HVAC appliances. Firstly, the value proposition of the business models is analysed and results in a comprehensive SWOT analysis. Based on the findings of the analysis and consultations with relevant market actors, in combination with the examination of the relevant literature, risks are identified and evaluated through a qualitative assessment approach. Subsequently, specific mitigation strategies are proposed to address the detected risks. This research demonstrates that blockchain integration into these business models can significantly improve energy efficiency, reduce operational costs, enhance security, and support a more decentralised energy system, providing actionable insights for stakeholders to implement blockchain solutions effectively. Furthermore, according to the results, technological and legal risks are the most significant, followed by political, economic, and social risks, while environmental risks of blockchain integration are not as important. Strategies to address risks relevant to blockchain exploitation include ensuring policy alignment, emphasising economic feasibility, facilitating social inclusion, prioritising security and interoperability, consulting with legal experts, and using consensus algorithms with low energy consumption. The findings offer clear guidance for energy service providers, policymakers, and technology developers, assisting in the design, deployment, and risk mitigation of blockchain-enabled business models to accelerate sustainable energy development. Full article

Flexibility markets are crucial for balancing the decentralised and renewable-driven energy landscape. This paper presents a security evaluation of a flexibility market system using a threat modelling approach. A reference architecture for a typical flexibility market system is proposed, and attack graph-driven simulations are performed to analyse potential attack pathways where malicious actors might infiltrate the system and the vulnerabilities they might exploit. Key findings include the identification of high-risk areas, such as the Internet links between market actors. To mitigate these risks, the paper proposes and evaluates multiple protection scenarios in reducing the identified attack vectors. The findings underline the importance of multi-layered security strategies to safeguard flexibility markets from increasingly sophisticated cyber threats. Full article

This paper investigates optimising battery energy storage systems (BESSs) to enhance the business models of Local Energy Markets (LEMs). LEMs are decentralised energy ecosystems facilitating peer-to-peer energy trading among consumers, producers, and prosumers. By incentivising local energy exchange and balancing supply and demand, LEMs contribute to grid resilience and sustainability. This study proposes a novel approach to BESS optimisation, utilising advanced artificial intelligence techniques, such as multilayer perceptron neural networks and extreme gradient boosting regressors. These models accurately forecast energy consumption and optimise BESS reserve allocation within the LEM framework. The findings demonstrate the potential of these AI-driven strategies to improve the BESS reserve capacity setting. This optimal setting will target meeting Energy Community site owners’ needs and avoiding fines from the distribution system operator for not meeting contract conditions. Full article

Rising fossil fuel costs and environmental concerns are driving the search for new energy sources, particularly renewable energy. Among these sources, solar photovoltaic (PV) is the most promising in southern European countries, mainly through the use of decentralised PV systems designed to produce electricity close to the point of demand and primarily to meet local energy needs. In an urban scenario, a decentralised energy system usually operates in parallel with the grid, allowing excess power generated to be injected into the grid. Solar carports and rooftop systems are excellent examples of distributed photovoltaic systems, which are far more sustainable than large centralised systems because they do not compete for land use. Despite their operational advantages, these decentralised photovoltaic production plants, which are in most cases financed by specific energy efficiency programs, present challenges in a regulated market where the injection of energy into the electricity grid is restricted by law and support programs. The aim of this work is to integrate two different photovoltaic systems within an academic campus where the only PV source currently available is a solar car park, a solution designed both to provide shaded space for vehicles and to produce energy to be consumed within the facilities. Due to legal restrictions, surplus electricity cannot be sold to the national grid, and solar batteries to store the generated energy are expensive and have a short lifespan. Therefore, since the campus has two different grid connections and a 102.37 kWp PV system, the newly designed system to be installed on the library roof must be calculated to support the installed electricity system during the most critical working hours, determining the specific angle and orientation of the solar panels. On this basis, the energy management of a school campus is fundamental to creating a collective self-consumption system, the basis of a local energy community that can meet energy, environmental, and social objectives. Full article

The emergence of distributed energy has led to a change in the role of the consumer in the traditional sense over the past decade. The proliferation of emerging generators and distributors has created opportunities for a more decentralised and open energy market. In particular, the emergence of peer-to-peer (P2P) energy trading models, challenged by the surge in demand for sustainable energy, has eliminated the need for intermediaries in energy transactions between consumers, producers, and sellers. Due to the great promise of sustainable energy, both in terms of its contribution to the environment and production costs, this paper reviews a number of well-known P2P energy trading platforms to understand what makes P2P energy trading platforms more functional. As a result, areas for consideration were identified and grouped into five themes: (1) set-up, (2) market, (3) information, (4) price, and (5) regulation. Full article

With the rapid development and technological innovation in the energy market, peer-to-peer (P2P) energy trading, as a decentralised and efficient trading model, has been widely studied and practically applied. However, in P2P energy transactions involving multiple prosumers, there are challenges such as information asymmetry, trust issues, and transaction transparency. To address these challenges, blockchain technology, as a distributed ledger technology, provides solutions. In this paper, we propose a blockchain technology-based prosumer–virtual power plant (VPP) two-tier interactive energy management framework to assist P2P energy transactions between multiple prosumers. In this framework, the virtual power plant acts as a leader and sets differentiated tariffs for different prosumers to equal the distribution of social welfare. The various prosumers act as followers and respond to the leader’s decisions in a cooperative manner. Blockchain’s immutability and transparency enable prosumers to participate in P2P energy trading with greater trust, share idle energy, and share revenues based on contribution. In addition, given the uncertainty of renewable energy, this paper employs a stochastic planning approach with conditional value at risk (CVaR) to describe the expected loss of VPP. Ultimately, as verified by the arithmetic simulation, the blockchain co-governance transaction model effectively supports energy coordination and optimization of complementarities while ensuring the utility of each transaction node. This model promotes the application of renewable energy in local consumption, while facilitating the innovation and sustainable development of the energy market. Full article

With the increasing interdependence among energies (e.g., electricity, natural gas and heat) and the development of a decentralised energy system, a novel retail pricing scheme in the multi-energy market is demanded. Therefore, the problem of designing a customised multi-energy pricing scheme for energy retailers is investigated in this paper. In particular, the proposed pricing scheme is formulated as a bilevel optimisation problem. At the upper level, the energy retailer (leader) aims to maximise its profit. Microgrids (followers) equipped with energy converters, storage, renewable energy sources (RES) and demand response (DR) programs are located at the lower level and minimise their operational costs. Three hybrid algorithms combining metaheuristic algorithms (i.e., particle swarm optimisation (PSO), genetic algorithm (GA) and simulated annealing (SA)) with the mixed-integer linear program (MILP) are developed to solve the proposed bilevel problem. Numerical results verify the feasibility and effectiveness of the proposed model and solution algorithms. We find that GA outperforms other solution algorithms to obtain a higher retailer’s profit through comparison. In addition, the proposed customised pricing scheme could benefit the retailer’s profitability and net profit margin compared to the widely adopted uniform pricing scheme due to the reduction in the overall energy purchasing costs in the wholesale markets. Lastly, the negative correlations between the rated capacity and power of the energy storage and both retailer’s profit and the microgrid’s operational cost are illustrated. Full article

The deployment of distributed energy systems must take place paying attention to the self-consumption of renewable generation. Innovative sector coupling strategies can play that role linking local electricity and gas grids. The present work aims to evaluate the energy and economic feasibility of the Power-to-Methane strategy application in urban energy districts. A residential cluster was considered as a case study. Two PV configurations have been applied to evaluate the Substitute Natural Gas (SNG) production under different renewable excess conditions. Thereafter, the Power-to-Methane strategy was implemented by varying the system’s size. Some significant configurations have been compared to each other in terms of energy and economics. Beyond a certain threshold limit, an increase in the photovoltaic size slightly enhances the effectively self-consumed energy. The Power-to-Methane strategy can exploit all the renewable excess once the system is properly sized, almost doubling the potential energy consumption reduction compared to the PV system alone. The SNG production cost is between 100 and 200 EUR/MWh in most configurations, which is competitive with the high natural gas prices on the European market. Therefore, decentralised SNG production can reduce the households’ annual expenditures and it can mitigate the energy poverty conditions over the current energy crisis period. Full article

Nowadays decarbonisation of the energy system is one of the main concerns for most governments. Renewable energy technologies, such as rooftop photovoltaic systems and home battery storage systems, are changing the energy system to be more decentralised. As a consequence, new ways of energy business models are emerging, e.g., peer-to-peer energy trading. This new concept provides an online marketplace where direct energy exchange can occur between its participants. The purpose of this study is to conduct a content analysis of the existing literature, ongoing research projects, and companies related to peer-to-peer energy trading. From this review, a summary of the most important aspects and journal papers is assessed, discussed, and classified. It was found that the different energy market types were named in various ways and a proposal for standard language for the several peer-to-peer market types and the different actors involved is suggested. Additionally, by grouping the most important attributes from peer-to-peer energy trading projects, an assessment of the entry barrier and scalability potential is performed by using a characterisation matrix. Full article

The energy sector has been a pioneer in the use of information and communication technologies for many years, and has undergone enormous changes in recent years as a result of the transition resulting from the fourth industrial revolution. In the paper, we examine and analyse relevant studies and their findings in order to show the current status of research on three selected aspects of digitalisation in energy sector enterprises. The paper sheds light on the diverse drivers influencing the digitalisation processes of energy sector companies. It also provides an overview of business models that are or will soon be implemented in the energy sector thanks to opportunities offered by digitalisation in response to observed trends in the energy market. Finally, it illustrates open research challenges and future dilemmas related to various aspects of energy sector digitalisation. The paper was prepared using the critical literature review method. It covers a large volume of the most recent and relevant literature referring to the three major research areas mentioned above. The literature review allowed us to identify the drivers influencing the digitalisation of energy companies and distinguish between those specific to this sector and those relating to all businesses as a part of the more general phenomena of Industry 4.0 and Industry 5.0. We also show how the digitalisation-based business model innovation presented in the literature empowers new energy producers and consumers through business models. We have also identified the most frequently indicated challenges and dilemmas in the digitalisation of energy companies related to the risk of the destabilisation of the energy market due to decentralisation, new requirements placed on the competences of energy sector workers, the new culture of interaction between energy suppliers and consumers, and the digital security of data used in the energy system. Full article

There are increasing international efforts to tackle climate change by reducing the emission of greenhouse gases. As such, the use of electrolytic hydrogen as an energy carrier in decentralised and centralised energy systems, and as a secondary energy carrier for a variety of applications, is projected to grow. Required green hydrogen can be obtained via water electrolysis using the surplus of renewable energy during low electricity demand periods. Electrolysis systems with alkaline and polymer electrolyte membrane (PEM) technology are commercially available in different performance classes. The less mature solid oxide electrolysis cell (SOEC) promises higher efficiencies, as well as co-electrolysis and reversibility functions. This work uses a bottom-up approach to develop a viable business model for a SOEC-based venture. The broader electrolysis market is analysed first, including conventional and emerging market segments. A further opportunity analysis ranks these segments in terms of business attractiveness. Subsequently, the current state and structure of the global electrolyser industry are reviewed, and a ten-year outlook is provided. Key industry players are identified and profiled, after which the major industry and competitor trends are summarised. Based on the outcomes of the previous assessments, a favourable business case is generated and used to develop the business model proposal. The main findings suggest that grid services are the most attractive business sector, followed by refineries and power-to-liquid processes. SOEC technology is particularly promising due to its co-electrolysis capabilities within the methanol production process. Consequently, an “engineering firm and operator” business model for a power-to-methanol plant is considered the most viable option. Full article

In this paper, an optimisation approach to prioritise buyers and sellers in a peer-to-peer (P2P) energy trading market based on distances from the aggregator has been developed. The proposed approach assigns higher preferences to buyers/sellers with a smaller distance, as this will allow lower losses in the power transmission. Under this approach, the sellers and buyers operate in a decentralised manner to optimise the preference coefficients along with the energy sold/purchased to achieve certain profits/savings. The proposed approach is implemented using a real-life dataset, and the impacts of different parameters, such as seasonal variations in renewable generation, distances and profit thresholds for sellers, have been investigated. The results show that the proposed approach allows buyers and sellers to purchase/sell more energy from the P2P trading market (2.4 times increase when maximum energy sold is considered) in comparison to the case when all participants are equally preferred. It has been observed that, with increasing distances, sellers are assigned a smaller preference coefficient, which results in sellers being willing to sell a higher amount of energy so that they can achieve the same profit threshold. Full article

The widely recognised Energiewende, (“energy transition”) in Germany has lost its original momentum. We therefore address the question of how the transition process to a new energy system can be reignited. To do so, we developed the “5Ds approach”, which lays the groundwork for a process analysis and the identification of important catalysts and barriers. Focusing on the five major fields required for the energy transition, we analyse the effects of: (1) Decarbonisation: How can efficiency and renewable energies be expanded successfully? (2) Digitalisation: Which digital solutions facilitate this conversion and would be suitable as sustainable business models? (3) Decentralisation: How can potential decentralised energy and efficiency opportunities be developed? (4) Democratisation: How can participation be strengthened in order to foster acceptance (and prevent “yellow vest” protests, etc.)? (5) Diversification of service: Which services can make significant contributions in the context of flexible power generation, demand-side management, storage and grids? Our paper comes to the conclusion that German policy efforts in the “5D” fields have been implemented very differently. Particularly with regard to democratisation, the opportunities for genuine participation among the different social actors must be further strengthened to get the Energiewende back on track. New market models are needed to meet the challenges of the energy transition and to increase the performance of “5D” through economic incentives. Full article

The energy sector is moving towards a low-carbon, decentralised, and smarter network. The increased uptake of distributed renewable energy and cheaper storage devices provide opportunities for new local energy markets. These local energy markets will require probabilistic price forecasting models to better describe the future price uncertainty. This article considers the application of probabilistic electricity price forecasting models to the wholesale market of Great Britain (GB) and compares them to better understand their capabilities and limits. One of the models that this paper considers is a recent novel X-model that predicts the full supply and demand curves from the bid-stack. The advantage of this model is that it better captures price spikes in the data. In this paper, we provide an adjustment to the model to handle data from GB. In addition to this, we then consider and compare two time-series approaches and a simple benchmark. We compare both point forecasts and probabilistic forecasts on real wholesale price data from GB and consider both point and probabilistic measures. Full article

The increasing number of prosumers and the accompanying greater use of decentralised energy resources (DERs) bring new opportunities and challenges for the traditional electricity systems and the electricity markets. Microgrids, virtual power plants (VPPs), peer-to-peer (P2P) trading and federated power plants (FPPs) propose different schemes for prosumer coordination and have the potential of becoming the new paradigm of electricity market and power system operation. This paper proposes a P2P trading scheme for energy communities that negotiates power flows between participating prosumers with insufficient renewable power supply and prosumers with surplus supply in such a way that the community welfare is maximized while avoiding critical grid conditions. For this purpose, the proposed scheme is based on an Optimal Power Flow (OPF) problem with a Multi-Bilateral Economic Dispatch (MBED) formulation as an objective function. The solution is realized in a fully decentralized manner on the basis of the Relaxed Consensus + Innovations (RCI) algorithm. Network security is ensured by a tariff-based system organized by a network agent that makes use of product differentiation capabilities of the RCI algorithm. It is found that the proposed mechanism accurately finds and prevents hazardous network operations, such as over-voltage in grid buses, while successfully providing economic value to prosumers’ renewable generation within the scope of a P2P, free market. Full article