Understanding the influence of prosumers on energy market. (IMAGE)
Caption
To understand the influence of distributed renewable energy sources and consumers going off-grid on the electricity market (prosumers), researchers from Japan and USA modeled it as an optimization problem based on market equilibrium theory. Their findings suggest that transmission charges do not always increase with the number of prosumers in the electricity market. However, by influencing their market power, strategic prosumers facilitate the creation of “death spirals,” whereby the rise in prosumers shifts the burden of transmission costs to traditional consumers.
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Ryuta Takashima from Tokyo University of Science, Japan
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