Prosumption and the distribution and supply of electricity

Abstract

Background: Increasing numbers of households install renewable energy production systems like photovoltaic panels thereby contributing to a more sustainable energy system. Other developments, like in-home storage or peer-to-peer exchange within a neighbourhood, also contribute to the transition. This paper explores the emerging rise of these prosumers of electricity and its implications, in particular for grid management and electricity supply in the Netherlands. Methods: With the help of an agent-based model, we illustrate the evolution of prosumption in a small Dutch-oriented residential community in five scenarios. The second part of the paper discusses the implications of the modelled rise in prosumption.Results: Depending on the number of prosumers, combined with storage and peer-to-peer supply, we found a share of prosumption in this local community of about 28-30 %. The community will require less electricity from the central power plants. These model results also indicate that the management of the local network will become more important if more households become prosumers in combination with storage and peer-to-peer supply. Conclusions: These trends affect current business models of DSOs and electricity production and supply companies. The latter are facing a loss of turnover which needs to be compensated by developing alternative business models. And, DSOs have to deal with the new needs on the local grid which also require an adaptation of their business models. Developing business models in cooperation with local energy communities could be an attractive alternative to explore.

Organizing prosumers into electricity trading communities: Costs to attain electricity transfer limitations and self‐sufficiency goals

“…These models differ with respect to their prosumer interactions and autonomy, as well as in terms of what incentives should be offered for the prosumer‐generated electricity to be consumed locally or sold to the grid. Similar concepts with regard to prosumer interactions with the electricity system and applying different methods can be found in the literature in papers that use the following terms: peer‐to‐peer electricity supply, prosumer community groups, neighborhood electricity trading, and energy communities . An example of a prosumer electricity trading project that is already implemented is the ‘Brooklyn Microgrid,' as investigated by Mengelkamp et al, who examined the project against a set of components identified as being essential for a microgrid energy market.…”

Enabling Value Co-Creation in the Sharing Economy: The Case of Mobike

“…"Prosumption" was first coined in the 1980s as an umbrella word to describe the then emerging phenomenon of consumers' "do-it-yourself" activities [19]. The prosumption concept has since been advanced by scholars in consumer studies [20] and socio-economic studies [16,[21][22][23]. Ritzer [16] define prosumption as a continuum of relations involving both producers and consumers in the co-creation of goods and services.…”

Assessing Financial and Flexibility Incentives for Integrating Wind Energy in the Grid Via Agent-Based Modeling

“…Energies 2019, 12, x FOR PEER REVIEW 3 of 34 management [18] and grid design strategies [19]. ABMs have also been used to predict price of energy trading in smart grids by the use of incomplete information by different agents to optimize their own utility [20].…”

“…Previous work on the use of ABMs for electricity grids, markets, and the injection of renewables have focused on the effect of prosumption and peer to peer supply and its effect on the grid management [18] and grid design strategies [19]. ABMs have also been used to predict price of energy trading in smart grids by the use of incomplete information by different agents to optimize their own utility [20].…”