My research contributes in the wider discussion about energy production and consumption rapidly evolving with the significant increase in generation from renewable energy sources (RES), followed by more dynamic consumption patterns signaled by the rise of more proactive consumers. Such developments follow trends towards the development of a more open and collaborative economy with increased interaction and exchange of information among its various actors.
Current electricity and ancillary service markets do not recognise the very nature of renewable energy with its variability and limited predictability, while tariffs tend to become unsustainable as shares of RES further increase and additional imbalance costs are transferred to the consumers. Similarly, the business models developed around the current markets, fail to capture the complexities of a collaborative economy and its impact on the distribution and pricing of electricity. Such challenges present two fascinating areas of research: first, the re-design of electricity markets so that they can appraise the uncertainty brought by renewables (the video below introduces “probabilistic offers” as the main concept of this line of research ); second, the development of the market mechanisms that will fully unlock the potential of shared economy in energy related applications.