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Energy exchange among heterogeneous prosumers under price uncertainty

Author

Listed:
  • Marta Castellini

    (Department of Economics and Management, Università degli Studi di Brescia; FEEM)

  • Luca Di Corato

    (Department of Economics, Ca' Foscari University of Venice)

  • Michele Moretto

    (Department of Economics and Management, University of Padua)

  • Sergio Vergalli

    (Department of Economics and Management, Università degli Studi di Brescia; FEEM)

Abstract

In this paper, we provide a real options model framing prosumers' investment in photovoltaic plants. This is presented in a Smart Grid context where the exchange of energy among prosumers is possible. We determine the optimal size of the photovoltaic installations based on the influence the self-consumption profiles on the exchange of energy among prosumers. We calibrate the model using figures relative to the Northern Italy energy market and investigate the investment decision allowing for different prosumer profiles and consider several combinations of their individual energy demand and supply. Our findings show that the shape of individual energy demand and supply curves is crucial to the exchange of energy among prosumers, and that there could be circumstances under which no exchange occurs.

Suggested Citation

  • Marta Castellini & Luca Di Corato & Michele Moretto & Sergio Vergalli, 2021. "Energy exchange among heterogeneous prosumers under price uncertainty," Working Papers 2021:24, Department of Economics, University of Venice "Ca' Foscari".
    • Handle: RePEc:ven:wpaper:2021:24
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    Cited by:

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    3. Àlex Alonso-Travesset & Diederik Coppitters & Helena Martín & Jordi de la Hoz, 2023. "Economic and Regulatory Uncertainty in Renewable Energy System Design: A Review," Energies, MDPI, vol. 16(2), pages 1-30, January.
    4. Su, Xiaoning & Liu, Pengfei & Mei, Yingdan & Chen, Jiaru, 2023. "The role of rural cooperatives in the development of rural household photovoltaics: An evolutionary game study," Energy Economics, Elsevier, vol. 126(C).
    5. Alberto Benato & Chiara D’Alpaos & Alarico Macor, 2022. "Possible Ways of Extending the Biogas Plants Lifespan after the Feed-In Tariff Expiration," Energies, MDPI, vol. 15(21), pages 1-23, October.

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    More about this item

    Keywords

    Smart Grids; Renewable Energy Sources; Real Options; Prosumer; Peer to Peer Energy Trading;
    All these keywords.

    JEL classification:

    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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