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Prosumer aggregation policies, country experience and business models

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  • Moura, Ricardo
  • Brito, Miguel Centeno

Abstract

The recent rise of distributed generation and self-consumption, together with the unbundling of the electricity supply chain, sprout the opportunity for innovative energy policies that increasingly place end-users as active agents of the system and democratize access to the energy markets. Such is the case of the emerging concepts of virtual metering, peer-to-peer energy trading, shared generation and local network charges, hereby grouped under the umbrella policy genre “Prosumer Aggregation Policies”. This paper sets out to describe the fundamental mechanisms within these concepts, to categorize them and their policy impacts, in order to guide regulators, decision-makers and the research community through the key steps and considerations involved in the design of Prosumer Aggregation Policies. Based on a comprehensive assessment of country experiences and a showcase of real business models and pilot projects, it is argued that prosumer aggregation policies significantly enhance prosumers’ drivers and improve the potential market of distributed generation and traditional self-consumption policies, ultimately providing policy access to all end-users regardless of possessing the appropriate site or resource conditions. They also address challenges for grid operators regarding grid integration and market integration of distributed generation, helping to minimize their impact in grid management.

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  • Moura, Ricardo & Brito, Miguel Centeno, 2019. "Prosumer aggregation policies, country experience and business models," Energy Policy, Elsevier, vol. 132(C), pages 820-830.
  • Handle: RePEc:eee:enepol:v:132:y:2019:i:c:p:820-830
    DOI: 10.1016/j.enpol.2019.06.053
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    1. Guilherme Pontes Luz & Rodrigo Amaro e Silva, 2021. "Modeling Energy Communities with Collective Photovoltaic Self-Consumption: Synergies between a Small City and a Winery in Portugal," Energies, MDPI, vol. 14(2), pages 1-26, January.
    2. Neves, Diana & Scott, Ian & Silva, Carlos A., 2020. "Peer-to-peer energy trading potential: An assessment for the residential sector under different technology and tariff availabilities," Energy, Elsevier, vol. 205(C).
    3. Gautier, Axel & Jacqmin, Julien & Poudou, Jean-Christophe, 2021. "Optimal grid tariffs with heterogeneous prosumers," Utilities Policy, Elsevier, vol. 68(C).
    4. Stecanella, Priscilla A. Juá & Camargos, Ronaldo S.C. & Vieira, Daniel & Domingues, Elder G. & Ferreira Filho, Anésio de L., 2022. "A methodology for determining the incentive policy for photovoltaic distributed generation that leverages its technical benefits in the distribution system," Renewable Energy, Elsevier, vol. 199(C), pages 474-485.
    5. Nizami, M.S.H. & Haque, A.N.M.M. & Nguyen, P.H. & Hossain, M.J., 2019. "On the application of Home Energy Management Systems for power grid support," Energy, Elsevier, vol. 188(C).
    6. Botelho, D.F. & de Oliveira, L.W. & Dias, B.H. & Soares, T.A. & Moraes, C.A., 2022. "Prosumer integration into the Brazilian energy sector: An overview of innovative business models and regulatory challenges," Energy Policy, Elsevier, vol. 161(C).
    7. István G. Balázs & Attila Fodor & Attila Magyar, 2021. "Quantification of the Flexibility of Residential Prosumers," Energies, MDPI, vol. 14(16), pages 1-21, August.
    8. Luz, G. Pontes & Brito, M.C. & Sousa, J.M.C. & Vieira, S.M., 2021. "Coordinating shiftable loads for collective photovoltaic self-consumption: A multi-agent approach," Energy, Elsevier, vol. 229(C).
    9. Martina Arosio & Davide Falabretti, 2023. "DER Participation in Ancillary Services Market: An Analysis of Current Trends and Future Opportunities," Energies, MDPI, vol. 16(5), pages 1-21, March.
    10. Di Lorenzo, Gianfranco & Rotondo, Sara & Araneo, Rodolfo & Petrone, Giovanni & Martirano, Luigi, 2021. "Innovative power-sharing model for buildings and energy communities," Renewable Energy, Elsevier, vol. 172(C), pages 1087-1102.
    11. Wang, Juan & Zheng, Junjun & Yu, Liukai & Goh, Mark & Tang, Yunying & Huang, Yongchao, 2023. "Distributed Reputation-Distance iterative auction system for Peer-To-Peer power trading," Applied Energy, Elsevier, vol. 345(C).
    12. Fuentes González, Fabián & Webb, Janette & Sharmina, Maria & Hannon, Matthew & Pappas, Dimitrios & Tingey, Margaret, 2021. "Characterising a local energy business sector in the United Kingdom: Participants, revenue sources, and estimates of localism and smartness," Energy, Elsevier, vol. 223(C).
    13. Iazzolino, Gianpaolo & Sorrentino, Nicola & Menniti, Daniele & Pinnarelli, Anna & De Carolis, Monica & Mendicino, Luca, 2022. "Energy communities and key features emerged from business models review," Energy Policy, Elsevier, vol. 165(C).
    14. Agnieszka Izabela Baruk, 2021. "Prosumers’ Needs Satisfied Due to Cooperation with Offerors in the Context of Attitudes toward Such Cooperation," Energies, MDPI, vol. 14(22), pages 1-16, November.
    15. Filippo Antoniolli, Andrigo & Naspolini, Helena Flávia & de Abreu, João Frederico & Rüther, Ricardo, 2022. "The role and benefits of residential rooftop photovoltaic prosumers in Brazil," Renewable Energy, Elsevier, vol. 187(C), pages 204-222.
    16. A. S. M. Mominul Hasan, 2022. "Virtual Net-Metering Option for Bangladesh: An Opportunity for Another Solar Boom like Solar Home System Program," Energies, MDPI, vol. 15(13), pages 1-23, June.
    17. Campos, Inês & Korsnes, Marius & Labanca, Nicola & Bertoldi, Paolo, 2024. "Can renewable energy prosumerism cater for sufficiency and inclusion?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 197(C).
    18. Minuto, Francesco Demetrio & Lanzini, Andrea, 2022. "Energy-sharing mechanisms for energy community members under different asset ownership schemes and user demand profiles," Renewable and Sustainable Energy Reviews, Elsevier, vol. 168(C).
    19. Maja Božičević Vrhovčak & Bruno Malbašić, 2023. "Unlocking the Value of Aggregated Demand Response: A Survey of European Electricity Markets," Energies, MDPI, vol. 16(17), pages 1-13, September.
    20. Gjorgievski, Vladimir Z. & Velkovski, Bodan & Francesco Demetrio, Minuto & Cundeva, Snezana & Markovska, Natasa, 2023. "Energy sharing in European renewable energy communities: Impact of regulated charges," Energy, Elsevier, vol. 281(C).
    21. Merla Kubli, 2020. "Navigating through the unknown: How conjoint analysis reduces uncertainty in energy consumer modelling," Systems Research and Behavioral Science, Wiley Blackwell, vol. 37(6), pages 880-885, November.
    22. Botelho, D.F. & Dias, B.H. & de Oliveira, L.W. & Soares, T.A. & Rezende, I. & Sousa, T., 2021. "Innovative business models as drivers for prosumers integration - Enablers and barriers," Renewable and Sustainable Energy Reviews, Elsevier, vol. 144(C).
    23. Gjorgievski, Vladimir Z. & Cundeva, Snezana & Markovska, Natasa & Georghiou, George E., 2022. "Virtual net-billing: A fair energy sharing method for collective self-consumption," Energy, Elsevier, vol. 254(PB).
    24. Urbano, Eva M. & Martinez-Viol, Victor & Kampouropoulos, Konstantinos & Romeral, Luis, 2021. "Energy equipment sizing and operation optimisation for prosumer industrial SMEs – A lifetime approach," Applied Energy, Elsevier, vol. 299(C).
    25. Kubli, Merla & Canzi, Patrizio, 2021. "Business strategies for flexibility aggregators to steer clear of being “too small to bid”," Renewable and Sustainable Energy Reviews, Elsevier, vol. 143(C).

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