Abstract
Due to the rapidly-changing technologies in the power industry, many new references addressing the frameworks and business models of the next-generation retail electricity market are entering the research community. In particular, considering new customers with considerable demand response awareness and so-called prosumers with localized power generation based on distributed energy resources (DERs), the next-generation retail electricity market infrastructure will be a level playing field for local energy transactions, strategic pricing scheme design, new business model design and building an innovative energy ecosystem. Consequently, there is an urgent need to keep track of international experiences and activities taking place in the field of the market mechanism design problem at the distribution level. This paper provides a comprehensive survey of recent technology developments and aims to inspire awareness of the further deregulation of the electricity market, especially in areas close to customers. We mainly bring attention to the more than 90 articles published during the past five years. The collected literature has been divided into different sections to discuss different aspects of the next-generation retail electricity market under the deregulated power industry.
Highlights
Electricity market deregulation has been underway since the United Kingdom opened a power pool in April 1990 [1], competitive forces in the U.S electricity market have been largely silent since the early-2000s California electricity crisis
Based on the various aforementioned studies of the retail electricity market in recent years, some trends can be observed that: (1) the system or market operation is more fine-grained from different perspectives, trying to balance credits’ assignment and benefit sharing among many types of market entities, including suppliers, speculative retailers, utilities, service providers, customers and other new parties introduced by new business models; (2) more and more consideration is given for economic operation on top of pure system requirement satisfaction, and a certain degree of risk is acceptable given the improving uncertainty of the whole system; (3) customers are expected to be more active in this market-loop instead of passive participants, which are allowed to directly interact with other market participants and exercise negotiation power
We provide a retrospect of the history of U.S electricity deregulation in Table 2 based on our previous work in [15] and hope to remind that electricity deregulation should keep track of the development of emerging technologies, especially considering the manipulative market power brought by these technologies and new business models
Summary
Electricity market deregulation has been underway since the United Kingdom opened a power pool in April 1990 [1], competitive forces in the U.S electricity market have been largely silent since the early-2000s California electricity crisis. The development of the retail electricity market seldom borrows much experience from such bulk power transactions, though. Instead, it prefers to follow principles, like multi-options, peer-to-peer, sharing economy friendliness, negotiability, and so on, that are utilized successfully in the customer-centric IT industry. It prefers to follow principles, like multi-options, peer-to-peer, sharing economy friendliness, negotiability, and so on, that are utilized successfully in the customer-centric IT industry This characteristic is the reason for popular proposals such as the energy Internet [5] and digital grid [6] in many references
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