The authors used the INFRASTRATEGO simulation game to examine strategic behavior in a liberalizing electricity market and the effectiveness of different regulatory regimes in dealing with this strategic behavior. The game simulates the Dutch electricity market in the years 2002 to 2006. The game was played eight times with about 400 players, both professionals and students. Two regulatory regimes defined by (a) the policy-making model and (b) the regulation by negotiation model were evaluated. The authors found several patterns of strategic behavior such as regulatory capture, sometimes with rather disturbing effects with regard to the settlement of rates and long-term capacity planning.
DOCUMENT
Peer-to-peer (P2P) energy trading has been recognized as an important technology to increase the local self-consumption of photovoltaics in the local energy system. Different auction mechanisms and bidding strategies haven been investigated in previous studies. However, there has been no comparatively analysis on how different market structures influence the local energy system’s overall performance. This paper presents and compares two market structures, namely a centralized market and a decentralized market. Two pricing mechanisms in the centralized market and two bidding strategies in the decentralized market are developed. The results show that the centralized market leads to higher overall system self-consumption and profits. In the decentralized market, some electricity is directly sold to the grid due to unmatchable bids and asks. Bidding strategies based on the learning algorithm can achieve better performance compared to the random method.
DOCUMENT
This research presents a case study exploring the potential for demand side flexibility at a cluster of university buildings. The study investigates the potential of a collection of various electrical devices, excluding heating and cooling systems. With increasing penetration of renewable electricity sources and the phasing out of dispatchable fossil sources, matching grid generation with grid demand will become difficult using traditional grid management methods alone. Additionally, grid congestion is a pressing problem. Demand side management in buildings may contribute to a solution to these problems. Currently demand response is, however, not yet exploited at scale. In part, this is because it is unclear how this flexibility can be translated into successful business models, or whether this is possible under the current market regime. This research gives insight into the potential value of energy demand flexibility in reducing energy costs and increasing the match between electricity demand and purchased renewable electricity. An inventory is made of on-site electrical devices that offer load flexibility and the magnitude and duration of load shifting is estimated for each group of devices. A demand response simulation model is then developed that represents the complete collection of flexible devices. This model, addresses demand response as a ‘distribute candy’ problem and finds the optimal time-of-use for shiftable electricity demand whilst respecting the flexibility constraints of the electrical devices. The value of demand flexibility at the building cluster is then assessed using this simulation model, measured electricity consumption, and data regarding the availability of purchased renewables and day-ahead spot prices. This research concludes that coordinated demand response of large variety of devices at the building cluster level can improve energy matching by 0.6-1.5% and reduce spot market energy cost by 0.4-3.2%.
DOCUMENT
In the Netherlands and some neighbouring European countries, the electric vehicle (EV) charging sector is receiving attention from market regulators. Concerns relating to competitive processes in this developing and rapidly growing sector are being raised. This paper identifies specific markets where regulation can help increase the level of competition for the development of affordable and accessible public charging infrastructure, both within the built environment (slow charging) as well as along highways (fast charging). Barriers to competition include exclusive concessions at the municipality level and long-term exclusive concessions at locations along highways.
LINK
This chapter presents the currently not established and identifies design requirements for new systems to address this challenge and provide directions for possible improvement. As a result, this chapter introduces the concept of SamenMarkt®, a participatory system in which multi-agent system technology enables distributed price negotiation, distribution and communication between producers, retailers and consumers.
LINK
Het onderzoek dat ten grondslag ligt aan dit artikel onderzoekt hoe de overheid markten reguleert voor (financiële) producten en diensten teneinde falen van de markt te voorkomen. Het behandelt specifiek EU Richtlijn 2014/57/EU betreffende strafrechtelijke sancties voor marktmisbruik en de implementatie daarvan in Nederland en opvolgend gebruik door het Openbaar Ministerie en Autoriteit Financiële Markten en hun Convenant ter voorkoming van ongeoorloofde samenloop van bestuurlijke en strafrechtelijke sancties. Het beantwoord de vraag of deze richtlijn de ontwikkeling van effectief reguleren van de financiële markt bevordert of remt. De slotsom ten aanzien van de implementatie van Richtlijn 2014/57/EU is – kort gezegd – dat “slechts” het aantal jaren gevangenisstraf voor handel met voorkennis en marktmisbruik van twee naar vier aangepast dient te worden. Het artikel concludeert tenslotte dat de huidige praktijk van het Convenant tussen OM en Autoriteit Financiële Markten kan blijven bestaan. De Autoriteit Financiële Markten kan haar inspanningen om haar toezicht verder in de geest van responsive regulation te verbeteren ongestoord door het OM voortzetten.
DOCUMENT
The traditional energy industry is transitioning from a centralised fossil fuel based industry to a decentralised renewable energy industry for several reasons including climate change, policy, and changing customer needs. Furthermore, renewable sources, such as wind and solar, are intermittent and unpredictable. This has implications for the business models of energy producers, such as increased mismatch between demand and supply, increased price volatility, shift in drivers of value creation. Due to the low marginal cost of production and the intermittent nature of renewables, the price volatility on the electricity markets, in particular the imbalance market, are expected to increase. However, there is potential for market parties operating in the electricity sector to profit from this development by providing flexibility to balance electricity supply and demand. Therefore, new business models are needed that can harness and exploit flexibility in a viable manner. In these business models, flexibility becomes the key driver of value creation.
DOCUMENT
Martien Visser roept beleidsmakers op de prijs van onze kwetsbaarheid onder ogen te zien, te accepteren dat bij energie het optimum van de markt niet samenvalt met het optimum voor de maatschappij. “Verder moeten er ruim voldoende maatregelen worden genomen, waardoor Nederland en Europa een energiemarkt krijgen die tegen een stootje kan.”
LINK
ESMA (European Securities and Markets Authority) published in December 2014 a document about the regulation norms. In that document the ESMA proposed to skip the exemption option for energy companies for the guidelines of the financial instruments. From Jan. 3 2018 MiFID II (Markets in Financial Instruments II) expanded the catalogue of financial instruments to energy companies. MiFID II requires that – among others – energy companies have the obligations to include the product in position limits, tests for fulfilment of conditions for exclusion, and inclusion in the supervisory regime under the EMIR (European Market Infrastructure Regulation). The MiFID II is obligatory for all EU members.Although there is a tendency for unbundling the several tasks in the energy sector, in some countries – like France – all tasks are concentrated in the hand of the state. At the other hand, in the Netherlands, Germany and the UK the tasks are divided among several parties. The financial relations between these parties are (partly) financial instruments.This study is important for the electricity market. In this study we describe the financial relations between the several parties in the electricity market in the Netherlands. The focus will be on the question of who bears the financial risks on the future cash flows. We describe the working of the clearing and the margin requirements for a better understanding. This has never been done for any country. In the light of MiFID II this analysis can also be interesting for other EU countries.
DOCUMENT
Recently, the job market for Artificial Intelligence (AI) engineers has exploded. Since the role of AI engineer is relatively new, limited research has been done on the requirements as set by the industry. Moreover, the definition of an AI engineer is less established than for a data scientist or a software engineer. In this study we explore, based on job ads, the requirements from the job market for the position of AI engineer in The Netherlands. We retrieved job ad data between April 2018 and April 2021 from a large job ad database, Jobfeed from TextKernel. The job ads were selected with a process similar to the selection of primary studies in a literature review. We characterize the 367 resulting job ads based on meta-data such as publication date, industry/sector, educational background and job titles. To answer our research questions we have further coded 125 job ads manually. The job tasks of AI engineers are concentrated in five categories: business understanding, data engineering, modeling, software development and operations engineering. Companies ask for AI engineers with different profiles: 1) data science engineer with focus on modeling, 2) AI software engineer with focus on software development , 3) generalist AI engineer with focus on both models and software. Furthermore, we present the tools and technologies mentioned in the selected job ads, and the soft skills. Our research helps to understand the expectations companies have for professionals building AI-enabled systems. Understanding these expectations is crucial both for prospective AI engineers and educational institutions in charge of training those prospective engineers. Our research also helps to better define the profession of AI engineering. We do this by proposing an extended AI engineering life-cycle that includes a business understanding phase.
LINK
