Discussion on drivers and proposition of approaches to support the transition of traditional electricity consumers to prosumers

Abstract

In recent years, traditional power systems have undergone a significant transition, mainly related to the massive penetration of Renewable Energy Sources (RES). More specifically, the transformation of residential consumers into prosumers has been challenging to the traditional operation of electricity markets. This transition brings new challenges and opportunities to the power system, leading to new Business Model (BM). One widely discussed change is related to a consumer-centric or prosumer-driven approach, promoting increased participation of small consumers in power systems. The present thesis aims at discussing the recent BMs as enablers of the increasing prosumers’ role in the energy market and power system worldwide, deepening the discussion with a holistic view of the Brazilian context. To do so, it defines the main features of prosumers and their general related regulation as well as possible market designs within power systems. Moreover, the work intends to contribute to the knowledge, identification and understanding of the main regulatory barriers and enablers for the development of those BMs in the Brazilian energy market. In addition, it discusses enabling technologies to properly create the conditions that sustain new prosumer-driven markets. Then, it presents a comprehensive review of existing and innovative BMs and a discussion on their future roles in modern power systems and, in the Brazilian regulatory framework seeking to guide the decisions for the country to develop its political and regulatory environment in the future. Moreover, a set of recommendations for promoting these BMs in the power system worldwide is provided along with policy recommendations to promote prosumers aggregation in the Brazilian energy sector. An important conclusion is that, even though economically possible, not all innovative BMs can spread around the world due to regulatory issues. Seeking to further explore one of the prosumer-driven approaches presented and the challenges imposed by this innovative BM, a study of energy and reserve markets based on the Peer-to-Peer (P2P) structure is carried out. This structure is very promising for the prosumers’ promotion but presents some challenges for the network operation. A critical challenge is to ensure that network constraints are not violated due to energy trades between peers and neither due to the use of reserve capacity. Therefore, two methodologies are proposed. First, is proposed a three-step approach (P2PTDF), using Topological Distribution Factors (TDF) to penalize peers responsible for violations that may occur in the network constraints, ensuring a feasible solution. Second, it is proposed a new integrated prosumers-DSO approach applied in P2P energy and reserve tradings that also ensures the feasibility of both energy and reserve transactions under network constraints. The proposed approach includes the estimation of reserve requirements based on the RES uncertain behavior from historical generation data, which allows identifying RES patterns. The proposed models are assessed through a case study that uses a 14-bus system, under the technical and economic criteria. The results show that the approaches can ensure a feasible network operation.