Dispersed Energy Storage and Its Effect on Market Efficiency in Electricity Trading with Distributed Power Resources: An Experimental Economics Study

  • Sangjic Lee
  • Ryuichi Uda
  • Kenju Akai
  • Nariaki Nishino
Conference paper
First Online:

Abstract

Electric power systems in the world are undergoing a structural reform. An electricity trading market that is consisted of distributed energy resources such as renewable power generators and bidirectional transmission networks is one idea regarding the future form of electricity market. This study models the electricity market in a way where each player takes both roles of supplier and consumer, power generation capacity is distributed, energy storage is partially installed, and transactions are made by a double auction mechanism. An analysis conducted by the method of laboratory economic experiment focuses on the relationship between various conditions of energy storage distribution among the players and the level of market efficiency. The result is that energy storage has both positive and negative impacts on the market: it reduces the amount of wasted energy and attains the efficient allocation of energy, but on the other hand it has a potential to make the market unstable.

Keywords

Electricity market Energy storage Distributed generation Experimental economics 
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Copyright information

© Springer Japan 2017

Authors and Affiliations

  • Sangjic Lee
    • 1
  • Ryuichi Uda
    • 1
  • Kenju Akai
    • 1
  • Nariaki Nishino
    • 1
  1. 1.The University of TokyoTokyoJapan

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