Exploring the impacts of major events on the systemic risk of the international energy market

This study examines the systemic risk caused by major events in the international energy market(IEM)and proposes a management strategy to mitigate it. Using the tail-event driven network(TENET)method, this study constructed a tail-risk spillover network(TRSN) of IEM and simulated the dynamic spillover tail-risk process through the cascading failure mechanism. The study found that renewable energy markets contributed more to systemic risk during the Paris Agreement and the COVID-19pandemic, while fossil energy markets played a larger role during the Russia-Ukraine conflict. This study identifies systemically important markets(SM) and critical tail-risk spillover paths as potential sources of systemic risk. The research confirms that cutting off the IEM risk spillover path can greatly reduce systemic risk and the influence of SM. This study offers insights into the management of systemic risk in IEM and provides policy recommendations to reduce the impact of shock events.

Market Operation of Energy Storage System in Smart Grid:A Review

As a flexible resource,energy storage plays an increasingly significant role in stabilizing and supporting the power system,while providing auxiliary services.Still,the current high demand for energy storage contrasts with the fuzzy lack of market-oriented mechanisms for energy storage,the principle of market-oriented operation has not been embodied,and there is no unified and systematic analytical framework for the business model.However,the dispatch management model of energy storage in actual power system operation is not clear.Still,the specific scheduling process and energy storage strategy on the source-load-network side could be more specific,and there needs to be a greater understanding of the collaborative scheduling process of the multilevel scheduling center.On this basis,this paper reviews the energy storage operation model and market-based incentive mechanism,For different functional types and installation locations of energy storage within the power system,the operational models and existing policies for energy storage participation in the market that are adapted to multiple operating states are summarized.From the point of view of the actual scheduling and operation management of energy storage in China,an energy storage regulation and operation management model based on“national,provincial,and local”multilevel coordination is proposed,as well as key technologies in the interactive scenarios of source-load,network and storage.

Energy Storage Operation Modes in Typical Electricity Market and Their Implications for China

As the Chinese government proposes ambitious plans to promote low-carbon transition,energy storage will play a pivotal role in China’s future power system.However,due to the lack of a mature electricity market environment and corresponding mechanisms,current energy storage in China faces problems such as unclear operational models,insufficient cost recovery mechanisms,and a single investment entity,making it difficult to support the rapid development of the energy storage industry.In contrast,European and American countries have already embarked on certain practices in energy storage operation models.Through exploration of key issues such as investment entities,market participation forms,and cost recovery channels in both front and back markets,a wealth of mature experiences has been accumulated.Therefore,this paper first summarizes the existing practices of energy storage operation models in North America,Europe,and Australia’s electricity markets separately from front and back markets,finding that perfect market mechanisms and reasonable subsidy policies are among the main drivers for promoting the rapid development of energy storage markets.Subsequently,combined with the actual development of China’s electricity market,it explores three key issues affecting the construction of costsharing mechanisms for energy storage under market conditions:Market participation forms,investment and operation modes,and cost recovery mechanisms.Finally,in line with the development expectations of China’s future electricitymarket,suggestions are proposed fromfour aspects:Market environment construction,electricity price formation mechanism,cost sharing path,and policy subsidy mechanism,to promote the healthy and rapid development of China’s energy storage industry.

Optimal Operation Strategy of Electricity-Hydrogen Regional Energy System under Carbon-Electricity Market Trading

Given the“double carbon”objective and the drive toward low-carbon power,investigating the integration and interaction within the carbon-electricity market can enhance renewable energy utilization and facilitate energy conservation and emission reduction endeavors.However,further research is necessary to explore operational optimization methods for establishing a regional energy system using Power-to-Hydrogen(P2H)technology,focusing on participating in combined carbon-electricity market transactions.This study introduces an innovative Electro-Hydrogen Regional Energy System(EHRES)in this context.This system integrates renewable energy sources,a P2H system,cogeneration units,and energy storage devices.The core purpose of this integration is to optimize renewable energy utilization and minimize carbon emissions.This study aims to formulate an optimal operational strategy for EHRES,enabling its dynamic engagement in carbon-electricity market transactions.The initial phase entails establishing the technological framework of the electricity-hydrogen coupling system integrated with P2H.Subsequently,an analysis is conducted to examine the operational mode of EHRES as it participates in carbon-electricity market transactions.Additionally,the system scheduling model includes a stepped carbon trading price mechanism,considering the combined heat and power generation characteristics of the Hydrogen Fuel Cell(HFC).This facilitates the establishment of an optimal operational model for EHRES,aiming to minimize the overall operating cost.The simulation example illustrates that the coordinated operation of EHRES in carbon-electricity market transactions holds the potential to improve renewable energy utilization and reduce the overall system cost.This result carries significant implications for attaining advantages in both low-carbon and economic aspects.

Modeling Energy Consumption in the Production Processes of Industrial Units Based on Load Response Programs in the Energy Market

The optimal operation of microgrids is of great significance for the sake of efficient and economical management of its energy resources.The microgrid energy management system should plan to operate the microgrid while simultaneously considering the electric and thermal load.The present study proposes energy management to minimize the costs of operating an industrial microgrid.In fact,planning for energy supply is among the critical issues that distribution companies deal with daily in the competitive environment.A distribution company usually meets customer(end customer)demands by purchasing energy from a wholesale market.Given the load curtailment,distribution companies have more choices and interactions in the market.Distribution companies face the two uncertainties of load changes and price fluctuations in their daily energy supply planning which could lead to the risk of loss resulting from the distribution company’s decision-making for daily energy supply planning.Thus,these companies face the challenge of maximizing profit in a risk-based environment.Therefore,the present study presents an optimal model of energy consumption in the production processes of aluminum and cement industrial units.The presented model was then used in planning the day-ahead energy of a microgrid containing these industrial units.Since the studied subject has many limitations,it would be difficult to solve it using mathematical methods.To resolve this issue then,the present study introduces a newly developed algorithm inspired by bee colonies.The proposed method seeks to significantly improve in the local and global search capabilities.In addition to confirming the validity of the proposed model,results indicate that the implementation of load-response programs and the cooperation of industrial units in the ancillary services and energy market can increase the profits of units and microgrids as well as correct the demand curve.According to the obtained results from the first and second test cases,the total profit of the aluminum unit was$188,103 and$237,805,respectively.Similarly,this profit for the cement industrial unit is$104,350 and$233,195.3,respectively.From the results,it can be observed that the final profit of the second unit has increased by 61%.

Dynamic optimal allocation of energy storage systems integrated within photovoltaic based on a dual timescale dynamics model

Energy storage systems(ESSs)operate as independent market participants and collaborate with photovoltaic(PV)generation units to enhance the flexible power supply capabilities of PV units.However,the dynamic variations in the profitability of ESSs in the electricity market are yet to be fully understood.This study introduces a dual-timescale dynamics model that integrates a spot market clearing(SMC)model into a system dynamics(SD)model to investigate the profit-aware capacity growth of ESSs and compares the profitability of independent energy storage systems(IESSs)with that of an ESS integrated within a PV(PV-ESS).Furthermore,this study aims to ascertain the optimal allocation of the PV-ESS.First,SD and SMC models were set up.Second,the SMC model simulated on an hourly timescale was incorporated into the SD model as a subsystem,a dual-timescale model was constructed.Finally,a development simulation and profitability analysis was conducted from 2022 to 2040 to reveal the dynamic optimal range of PV-ESS allocation.Additionally,negative electricity prices were considered during clearing processes.The simulation results revealed differences in profitability and capacity growth between IESS and PV-ESS,helping grid investors and policymakers to determine the boundaries of ESSs and dynamic optimal allocation of PV-ESSs.

Analyzing the Wind-Dominant Electricity Market under Coexistence of Regulated and Deregulated Power Trading

Currently,both regulated and deregulated power trading exist in China’s power system,which has caused imbalanced funds in the electricity market.In this paper,a simulation analysis of the electricity market with wind energy resources is conducted,and the calculation methods of unbalanced funds are investigated systematically.In detail,the calculation formulas of unbalanced funds are illustrated based on their definition,and a two-track electricity market clearing model is established.Firstly,the concept of the dual-track system is explained,and the specific calculation formulas of various types of unbalanced funds are provided.Next,considering the renewable energy consumption,the market clearing model based on DC power flow is constructed and solved;by combining fitting methods of mid-and long-term curves,the unbalanced funds are calculated based on clearing results and formulas.

Electricity-Heat-Based Integrated Demand Response Considering Double Auction Energy Market with Multi-Energy Storage for Interconnected Areas

With development of integrated energy systems and energy markets,transactive energy has received increasing attention from society and academia,and realization of energy distribution and integrated demand response through market transactions has become a current research hotspot.Research on optimized operation of a distributed energy station as a regional energy supply center is of great significance for improving flexibility and reliability of the system.Based on retail-side energy trading market,this study first establishes a framework of combined electric and heating energy markets and analyses a double auction market mechanism model of interconnected distributed energy stations.This study establishes a mechanism model of energy market participants,and establishes the electric heating combined market-clearing model to maximize global surplus considering multi-energy storage.Finally,in the case study,a typical user energy consumption scenario in winter is selected,showing market-clearing results and demand response effects on a typical day.Impact of transmission line constraints,energy supply equipment capacity,and other factors on clearing results and global surplus are compared and analyzed,verifying the effects of the proposed method on improving global surplus,enhancing interests of market participants and realizing coordination and optimal allocation of both supply and demand resources through energy complementarity between regions.

Evaluation index system of shared energy storage market towards renewable energy accommodation scenario:A China’s Qinghai province context

With the ever-increased installed capacity of renewable energy generation units in a power system,the so-called shared energy storage(SES),a novel business model under the umbrella of the shared economy principle,has the potential to play an essential role in the accommodation of renewable energy generation.However,unified evaluation standards and methods,which can help decision-makers analyze the performance of the SES market,are still not available.In this paper,an evaluation index system of the SES market is designed based on the trading rules of China’s Qinghai province and the structure-conduct-performance(SCP)analytical model.Moreover,the definition and characteristics of the indices,which can show the performance of the SES market from different perspectives,are given.Furthermore,the ideal cases are presented as the evaluation benchmark based on the development expectation of the SES market,and the analytic hierarchy process(AHP)and the technique for order preference by similarity to an ideal solution(TOPSIS)are applied to evaluate the SES market comprehensively.Finally,a case study based on actual data of the SES trading pilot project in Qinghai shows that the evaluation index system can reflect the operation status,existing problems and influencing factors of the SES market.

Joint electricity and carbon market for Northeast Asia energy interconnection

Decarbonization of the electricity sector is crucial to mitigate the impacts of climate change and global warming over the coming decades.The key challenges for achieving this goal are carbon emission trading and electricity sector regulation,which are also the major components of the carbon and electricity markets,respectively.In this paper,a joint electricity and carbon market model is proposed to investigate the relationships between electricity price,carbon price,and electricity generation capacity,thereby identifying pathways toward a renewable energy transition under the transactional energy interconnection framework.The proposed model is a dynamically iterative optimization model consisting of upper-level and lower-level models.The upper-level model optimizes power generation and obtains the electricity price,which drives the lower-level model to update the carbon price and electricity generation capacity.The proposed model is verified using the Northeast Asia power grid.The results show that increasing carbon price will result in increased electricity price,along with further increases in renewable energy generation capacity in the following period.This increase in renewable energy generation will reduce reliance on carbon-emitting energy sources,and hence the carbon price will decline.Moreover,the interconnection among zones in the Northeast Asia power grid will enable reasonable allocation of zonal power generation.Carbon capture and storage (CCS) will be an effective technology to reduce the carbon emissions and further realize the emission reduction targets in 2030-2050.It eases the stress of realizing the energy transition because of the less urgency to install additional renewable energy capacity.

Energy-Efficient Operation of Water Systems through Optimization of Load Power Reduction in Electricity Markets

Demand response(DR) is gaining more and more importance in the architecture of power systems in a context of flexible loads and high share of intermittent generation. Changes in electricity markets regulation in several countries have recently enabled an effective integration of DR mechanisms in power systems. Through its flexible components(pumps, tanks), drinking water systems are suitable candidates for energy-efficient DR mechanisms. However, these systems are often managed independently of power system operation for both economic and operational reasons. Indeed, a sufficient level of economic viability and water demands risk management are necessary for water utilities to integrate their flexibilities to power system operation. In this paper,we proposed a mathematical model for optimizing pump schedules in water systems while trading DR blocs in a spot power market during peak times. Uncertainties about water demands were considered in the mathematical model allowing to propose power reductions covering the potential risk of real-time water demand forecasting inaccuracy.Numerical results were discussed on a real water system in France, demonstrating both economic and ecological benefits.

COVID‑19 pandemic and the crude oil market risk:hedging options with non‑energy financial innovations

This study examines the hedging effectiveness of financial innovations against crude oil investment risks,both before and during the COVID-19 pandemic.We focus on the non-energy exchange traded funds(ETFs)as proxies for financial innovations given the potential positive correlation between energy variants and crude oil proxies.We employ a multivariate volatility modeling framework that accounts for important statistical features of the non-energy ETFs and oil price series in the computation of optimal weights and optimal hedging ratios.Results show evidence of hedging effectiveness for the financial innovations against oil market risks,with higher hedging performance observed during the pandemic.Overall,we show that sectoral financial innovations provide resilient investment options.Therefore,we propose that including the ETFs in an investment portfolio containing oil could improve risk-adjusted returns,especially in similar financial crisis as witnessed during the pandemic.In essence,our results are useful for investors in the global oil market seeking to maximize risk-adjusted returns when making investment decisions.Moreover,by exploring the role of structural breaks in the multivariate volatility framework,our attempts at establishing robustness for the results reveal that ignoring the same may lead to wrong conclusions about the hedging effectiveness.

Cross-correlation analysis of crude oil and new energy markets: A new perspective based on carbon emission market

Taking the return series of the EU carbon allowance price, WTI crude oil price, the European renewable energy index and Shenzhen carbon emission price, Daqing crude oil price, the China securities new energy index as sample data, the multifractal detrend cross-correlation analysis method(MF-DCCA)is used to research the dynamic cross-correlation relationships among the carbon emission market, crude oil market and the new energy market in Europe and China and the source of the multifractality. The empirical analysis shows that the cross-correlations among the carbon emission market, crude oil market and new energy market in Europe and China have all significant multifractal characteristics. Moreover, the multifractal strength of cross-correlation between the carbon emission market and crude oil market is less than that between the carbon emission market and new energy market in Europe. The Chinese market is the opposite. In addition, the multifractal strength of cross-correlation between the crude oil market and new energy market in Europe is more than that between the crude oil market and new energy market in China. It is also found that the long-range correlation of the sequences themselves and the fat-tailed distribution in fluctuations are the common causes of the multifractality, and the fat-tailed in fluctuations distribution contributes more to the multifractals of the series.

Is Wave Power a Promising Renewable in the UK Energy Market?——UK Wave Energy Market Analysis

This paper introduces the potential of wave energy and the market potential of wave power in the United Kingdom.It presents the current wave power market in the UK by analyzing in detail the market size, key competitors,market price,financial supports and current technologies.On this basis,the paper gives a prediction on the wave power development in the UK,including market trend,technology trend,as well as opportunities and risks in the development.Finally the paper concludes that the UK wave energy market is growing healthily and prosperously,and submits some recommendations to new entrants.

Research on the Application of Energy Internet Big Data in Integrated Energy Market

Energy Internet is deeply integrated by Internet concept, information technology and energy industry, and Energy Internet Big Data are one of core technologies that achieve energy-information-economic interconnection and improve the development and evolution of Energy Internet. This paper describes the concept and characteristics of Energy Internet Big Data, and feasibility of applying Energy Internet Big Data to integrated energy market. On this basis, as for integrated energy market and multi-subjects of Energy Internet, typical application and technical system based on Energy Internet Big Data in integrated energy market is put forward, which provides a reference for the analysis and decision of integrated energy market in Energy Internet.

Construction practice of market system for energy saving renovation of existing buildings

The energy-saving reconstruction market of existing buildings is a complex system.It includes three subsystems:service market,capital market and technology market.The service market takes the relationship between energy service companies and owners as the core to establish service associated relationships.The capital market is based on the mechanism of"investment guarantees and risk sharing"to form structures of the capital market.The technology market relies on the"industry-university-research"mode to build technology supporting platforms.Being interdependent and mutually restricted,the three subsystems form the complete system of existing buildings in energy-saving reconstruction.

Green Marketing and Renewable Energy： Evidence on Motivations and Behaviour in the Aquacultural Market

The purpose of this paper falls within the theoretical framework of green marketing. It investigates the relationships that exist between the motives relating to aquacultural products marketed under the private label of a traditional retailer （Coop）, the attitude towards their purchase, the perception of their quality, their reliability and the willingness to pay for them. Particular importance is given to the green motives, those that lead to a preference for a product made with specific renewable energies such as biogas. The structural equation models （SEM） technique is used to develop propositions representing a theoretical approach to the integration of green marketing, in the context of the process for purchasing Coop brand fish. With regard to distinguishing between the motives, we referred to the approach that sets out three different types of motive： clean, green and ethical. The resulting managerial implications make it possible to assess how much the different types of motive influence the choices of the consumers. Managers will benefit from the results of this paper by understanding better the benefits for consumers of aquacultural products from renewable energy such as biogas. The originality of the paper lies in its focusing on green purchase behaviour in a poorly investigated sector such as that of fish breeding. The paper contributes to an understanding of the factors that influence environmentally responsible purchase behaviour and their exact relationships, that are still unclear in literature. The fact that environmental issues and concerns are constantly changing implies that ongoing research into their influence on consumer behaviour is essential

Modeling the Proposal of the Simultaneous Purchases and Sales of Electricity and Gas for the Energy Market in a Microgrid Using the Harmony Search Algorithm

The use of different energy carriers together,known as an energy hub,has been a hot topic of research in recent years amongst scientists and researchers.The term energy hub refers to the simultaneous operation of various infrastructures for energy generation and transfer,which has gained momentum in the form of microgrids(MGs).This paper introduces a new strategy for the optimal performance of an MG consisting of different energy carriers for each day.In a smart distribution network(DN),MGs can reduce their own costs in the previous-day market by bidding on sales and purchases.The sales and purchases bidding problem is challenging due to different uncertainties,however.This paper proposes a two-stage strategy for making an optimal bid on electricity sales and purchases with electricity and gas price dependency in the previous-day and real-time markets for an energy hub.In this model,the MG behavior regarding the electricity and gas energy sales/purchase,the simultaneous effects of electricity and gas prices,as well as the energy carriers’dependence on one another are all examined.Due to the inherent uncertainty in the sources of clean energy production,the probabilistic model and the production and reduction scenario have been used in the paper to cover this issue.In the proposed grid,energy sales/purchases are presented in a multi-carrier MG in a two-stage model.This model is solved by using the harmony search algorithm in MATLAB.Numeric results demonstrate the benefits of this model in reducing energy hub costs of operation.

Seizing the Opportunity of Belt and Road Construction to Promote Energy Finance Market Construction

The significant progress achieved in energy cooperation along the "Belt and Road"route has provided a strategic opportunity for promoting the energy finance market.In line with the trend of global energy transformation and international energy pattern adjustment,to promote the formation of a more inclusive regional international energy trade system,accelerating the internationalization of the RMB.Using the launch of Shanghai crude oil futures as an opportunity,we will actively develop the energy finance derivatives market of oil,natural gas and other commodities,thus enhancing China's ability to obtain the value at the high-end segment of the global energy industry chain.

Legislative Impact on Significance of RES in the Latvian Energy Market

Latvia is a new European Union country, with 20-year experience in the efforts to develop the energy policy that would favour reliable supply of the state with energy and promote its effective and rational utilization. The energy law should take into consideration the technological progress and increasing energy consumption as well as the poorly regulated sphere of production and utilization. At present, new regulations are needed, as the existent ones have become outdated and unable to ensure stable development of the energy sector. However, the lack of experience and sometimes external influence could lead to a situation when the new law would not be conducive to the industrial development but vice-versa-would slow it down. Since Latvia has been confronted by counterproductive laws, it is highly important to estimate beforehand the future impact of legislation on the state economy. On issue of for the country is now to guarantee-by force of law-the optimal share of renewable energy in the national energy mix. The objective set within the framework of European Union policy is to achieve a 40% share of renewable energy by 2020; therefore, it is necessary to work out a separate law concerning the RES （renewable energy sources）. The new RES law is to regulate support and to promote increase in the share of renewable. However, there are many influencing factors--not clearly specified outlooks for the energy sector and national economy development, the interests of energy importers, lobbying, etc.; these factors can make the RES law not only ineffective but even negatively affecting the RES share stability in the state energy balance. It is therefore essential, before the law has been adopted, to thoroughly analyze it so that the optimal variant is accepted.