黑料福利网

Europe's electricity system is undergoing a major transformation. Instead of relying on a limited number of large power plants, electricity is increasingly generated locally through solar panels and wind farms. At the same time, the growing use of electric vehicles and heat pumps is increasing demand for electricity.

These developments place extra pressure on the electricity grid and make it more difficult to keep supply and demand in balance. As a result, new ways of managing the grid are needed.

Local markets offer opportunities

One promising solution is the introduction of local flexibility markets. In these markets, households, businesses and other participants can offer flexible electricity use or storage鈥攆or example by charging batteries at different times or temporarily reducing electricity consumption. This flexibility can help relieve congestion on the grid and make better use of available capacity.

However, whether these markets actually deliver these benefits depends largely on how they are designed.

AI predicts market behaviour

To better understand the impact of different market designs, Haoyang Zhang developed AI-based simulation models. These models mimic how participants are likely to behave under different market rules, including strategic bidding behaviour.

By testing market designs in a virtual environment before they are introduced in practice, policymakers and system operators can identify potential problems early and improve market rules before implementation.

Coordination is essential

The research shows that local flexibility markets can successfully reduce congestion and lower overall system costs. At the same time, it also highlights potential risks. If local markets operate without sufficient coordination with other electricity markets and grid operations, they may create inefficiencies or allow some participants to gain excessive market power.

The key message is therefore clear: local electricity markets should never be designed in isolation. Their interaction with the wider electricity system is crucial for ensuring reliable, efficient and transparent operation.

Supporting Europe's energy transition

The findings provide valuable insights for regulators, grid operators and policymakers who are shaping tomorrow's electricity markets. By combining artificial intelligence with advanced simulations, the research offers a practical way to evaluate new market designs before they are introduced.

As Europe's energy system continues to decentralize, this research helps create electricity markets that are not only smarter, but also fairer, more reliable and better prepared for a renewable energy future.

Title of PhD thesis: . Supervisors: Prof. Koen Kok, and Dr. Nikolaos Paterakis.