• Achieving learning potentials in an educational simulation game for trading and generating electrical energy

      Delarue, Erik; Laga, L.; Meeus, Leonardo; Belmans, Ronnie; D'haeseleer, William (International Journal of Engineering Education, 2011)
      This paper presents and motivates the development of a techno-economic education package, consisting of two simulation games, to simulate both the trading and the generation of electricity in a liberalized market. Six attributes (storytelling; players as problem solvers and explorers; feedback; challenges that fit the student characteristics; competition; appropriate graphics and sounds) are relevant in order for simulation games to achieve their learning potentials. These attributes are identified within both developed simulation games.
    • An economic analysis of used electric vehicle batteries integrated into commercial building microgrids

      Beer, Sebastian; Gomez, D.; Dallinger, D.; Momber, Ilan; Marnay, Chris; Stadler, Michael; Lai, Judy (IEEE Transactions on Smart Grids, 2012)
    • Appraisal of the European Commission's Energy Roadmap 2050

      Meeus, Leonardo (European Energy Journal, 2012)
      What is the European energy strategy for 2050? How different is it from the 2020 energy strategy? What are the technology options? What are the policy options? The European Commission provided a first answer to these questions in its Energy Roadmap 2050. This article gives an appraisal of that answer based on the recommendations we made during the preparation of the roadmap.
    • Block order restrictions in combinatorial electric energy auctions

      Meeus, Leonardo; Verhaegen, K.; Belmans, Ronnie (European Journal of Operational Research, 2009)
      In Europe, the auctions organized by “power exchanges” one day ahead of delivery are multi-unit, double-sided, uniformly priced combinatorial auctions. Generators, retailers, large consumers and traders participate at the demand as well as at the supply side, depending or whether they are short or long in electric energy. Because generators face nonconvex costs, in particular startup costs and minimum run levels, the exchanges allow "block orders" that are allor-nothing orders of a given amount of electric energy in multiple consecutive hours, while the standard order consists of an amount for a single hour that can be curtailed. All exchanges restrict the size (MWh/h), the type (span in terms of hours) or the number (per participant per day) of blocks that can be introduced. This paper discusses the rationale of block order restrictions. Based on simulations with representative scenarios, it is argued that the restrictions could be relaxed, which some exchanges have already started doing.
    • Does more international transmission capacity increase competition in the Belgian electricity market

      Küpper, Gerd; Delarue, Erik; Delvaux, Bram; Meeus, Leonardo; Bekaert, David; Willems, Bert; Proost, Stef; D'haeseleer, William; Deketelaere, Kurt; Belmans, Ronnie (The Electricity Journal, 2009)
      From a national market perspective, taking transmission capacity into account reduces current concentration measures, although they remain fairly high even after substantial capacity increases. From an international perspective, a more efficient use of current transmission capacity by coupling regional markets can increase competition. That suggests it may not be appropriate to assess market concentration using national market shares.
    • DSO-TSO cooperation issues and solutions for distribution grid congestion management

      Hadush, Samson Yemane; Meeus, Leonardo (Energy Policy, 2018)
      The role of DSOs is evolving due to the increasing penetration of intermittent and distributed energy resources in the distribution system. On the one hand, TSOs are accessing flexibility resources connected to the distribution grid. On the other hand, DSOs are actively managing distribution grid congestion, moving away from the conventional fit and forget approach. As a result, the need for DSO-TSO cooperation has become increasingly important. In this study, we first discuss market and grid operation issues related to different system states and the corresponding congestion management approaches, in the context of the European electricity market design and regulation. Second, we discuss viable solutions that are inspired by inter-TSO cooperation solutions as well as solutions that are being adopted by DSOs. Our findings show that the issues are rather similar both at transmission and distribution level; however, the need for cooperation and the solutions will depend on where structural congestion will occur and which borders will be managed. We also note that cooperation between DSOs as well as between DSOs and microgrids could become more important with the development of local energy markets in the long term.
    • Electricity market integration in Europe

      Meeus, Leonardo; Belmans, Ronnie (Revue-E, 2008)
      Europe is preparing for a third wave of legislation to further reform electricity markets. The energy sector inquiry conducted in preparation of this third energy package concluded that there is lack of market integration. Even though this is true, it is important to put this in perspective. For the moment, electricity markets in Europe are indeed not the most harmonized or fine-tuned of the world. However, in some regions promising initiatives have already been launched and even when only integrated regionally, these markets will be the largest in the world, which indicates how ambitious the target of a single electricity market for Europe really is
    • Electricity produced from renewable energy sources - what target are we aiming for?

      Verhaegen, K.; Meeus, Leonardo; Belmans, Ronnie; Delvaux, Bram (Energy Policy, 2007)
      In 2001, the European Commission (hereafter "EC") formulated an ambitious target of 21% of total community electricity consumption to be generated with renewable energy sources by 2010. Moreover, national indicative targets per Member State were specified. In practice, the latter are implemented in all Member States as national production targets, achievable exclusively through an increase of the domestic production of electricity produced from renewable energy sources (hereafter "RES-E"). However, in this article it will be shown that this is not in line with the EC's intent. Looking at the legislative process resulting in the Directive on the promotion of RES-E, it is demonstrated that instead the EC aimed for European trade in renewable electricity through national consumption targets. It is shown that the legislative process has resulted in confusion on both the nature (absolute or proportional figures) and the subject (consumption or production) of the RES-E targets that are being aimed for. Despite the EC's attempt to clarify this confusion, the reality of national production targets remains, hindering the attainment of the European RES-E target in the most cost-efficient manner.
    • EU 2050 low-carbon energy future: visions and strategies

      Meeus, Leonardo; Azevedo, Isabel; Marcantonini, Claudio; Glachant, Jean-Michel; Hafner, Manfred (The Electricity Journal, 2012)
      Analysis of the visions of key EU Member States to achieve a low-carbon energy system by 2050 finds that the states are already pursuing sometimes divergent strategies that create new risks for energy policy fragmentation but also imply new opportunities for cooperation, and for EU institutions to provide added value to national policies.
    • Evaluation of economic merger control techniques applied to the European electricity sector

      Vandezande, Leen; Meeus, Leonardo; Delvaux, Bram; Van Calster, Geert; Belmans, Ronnie (The Electricity Journal, 2006)
      With European electricity markets not yet functioning on a competitive basis and consolidation increasing, the European Commission has said it intends to more intensively apply competition law in the electricity sector. Yet economic techniques and theories used in EC merger control fail to take sufficiently into account some specific features of electricity markets. The authors offer suggestions to enhance their reliability and applicability in the electricity sector.
    • Experience with electricity market test suite: students versus computational agents

      Trinh, Quynh Chi; Saguan, Marcelo; Meeus, Leonardo (IEEE Transactions on Power Systems, 2013)
      This paper applies two experimental economics methods (i.e., agent-based modeling and laboratory experiment) to a market test suite that is based on a fictional European wholesale electricity market. Quantitative results of generators' strategic behavior in this market context are separated between generators played by human subjects (i.e., master students) in a laboratory experiment and generators represented by computational agents in an agent-based model. The behavior is measured through offers that students or agents make when participating in the electricity trading auction and the market outcomes under both methods are discussed in order to illustrate the difference between the behavior of human and computational agents. The paper also identifies the improvements that would need to be made to the market test suite to allow for a more conclusive comparison in future experiments.
    • Flexibility markets: Q&A with project pioneers

      Schittekatte, Tim; Meeus, Leonardo (Utilities Policy, 2020)
      Flexibility markets are a promising tool to make better use of existing distribution grids. We analyse four pioneering projects implementing flexibility markets: Piclo Flex, Enera, GOPACS, and NODES. Based on a literature review, we develop a six-question framework. We find that all of the considered flexibility markets are operated by a third party. All projects also engage with multiple DSOs to become the standardized platform provider. Differences among the projects are found in the extent to which the flexibility markets are integrated into other existing markets, the use of reservation payments, the use of standardized products, and the way TSO-DSO cooperation is done. The answers to these questions vary for the projects because of different visions, use cases, or project maturity. Our case study analysis of four pioneering projects enriches the taxonomy and shows that practice is moving faster than the conceptual debate around flexibility markets.
    • Future-proof tariff design: Recovering sunk grid costs in a world where consumers are pushing back

      Schittekatte, Tim; Momber, Ilan; Meeus, Leonardo (Energy Economics, 2018)
      Traditional analysis of distribution network tariff design assumes a lack of alternatives to grid connection for the fulfilment of consumers' electricity needs. This is radically changing with breakthroughs in two technologies: (1) Photovoltaics (PV) enable domestic and commercial consumers to self-produce energy; (2) Batteries allow consumers and self-producers to gain control over their grid energy and capacity parameters. Contributing to the state of the art, the grid cost recovery problem for the Distribution System Operator (DSO) is modelled as a non-cooperative game between consumers. In this game, the availability and costs of the two named technologies strategically interact with tariff structures. Four states of the world for user's access to technologies are distinguished and three tariff structures are evaluated. The assessed distribution network tariff structures are: energy volumetric charges with net-metering, energy volumetric charges for both injection and withdrawal, and capacity-based charges. Results show that in a state of the world with new technology choices for grid users both efficiency and equity issues can arise when distribution network charges are ill-designed.
    • Global vs. low carbon economy: The case of the revised EU emissions trading scheme

      Ahner, Nicole; Meeus, Leonardo (Review of European Community and International Environmental Law, 2010)
      Europe is tightening its climate change policy and with that its pollution control legislation, supposedly to lead the way towards a low carbon economy. As the rest of the world is lagging behind in greenhouse gas emission reduction efforts, this causes increasing concern for the European carbon‐intensive industry. In order to address concerns of economic competitiveness and emission leakage, the EU is considering the extension of its recently revised EU Emission Trading Scheme on carbon‐intensive goods imported from countries not taking comparable action to reduce their emissions. This article examines the permissibility of such an extension under the law of the World Trade Organization, namely the General Agreement of Tariffs and Trade (1994).
    • How to engage consumers in demand response: a contract perspective

      He, Yue; Keyaerts, Nico; Azevedo, Isabel; Meeus, Leonardo; Hancher, Leigh; Glachant, Jean-Michel (Utilities Policy, 2013)
      Nowadays, the European electricity systems are evolving towards a generation mix that is more decentralised, less predictable and less flexible to operate. In this context, additional flexibility is expected to be provided by the demand side. Thus, how to engage consumers to participate in demand response is becoming a pressing issue. In this paper, we provide an analytical framework to assess consumers' potential and willingness to participate in active demand response from a contract perspective. On that basis, we present policy recommendations to empower and protect consumers in their shift to active demand response participants.
    • Impact of nested inventory allocation policies in a newsvendor setting

      Samii, Behzad (International Journal of Production Economics, 2016)
      We model an inventory management setting in which the decision maker first uses newsvendor model to decide on the amount of ordered perishable inventory for a fixed consumption period, based on the best available forecast of demand at the time of ordering. After a relatively long lead time, the consumption period starts and she has to assign the received inventory to two priority customer classes given the -newly updated- rate of arrival of each class. The assignment of inventory requires two simultaneous decisions: 1) the reservation quantity for the high priority class and 2) the choice of inventory allocation mechanism (Standard Nesting SN or Theft Nesting TN), to minimize the expected units short of the high priority class while minimizing the wasted inventory at the end of the fixed consumption period. We assume that some partial information about the bottom line impact of a shortage in high priority customer class compared to the other can be conjectured. For both inventory allocation mechanisms, we then calculate the monetary benefit for all feasible reserved quantities to identify the optimal reserved quantity. We derive closed form expressions for the expected number of units short in each demand class under SN and TN allocation mechanisms. We showcase the management of electricity smart meter inventory in a multi-year implementation project consisting of multiple fixed consumption periods. Numerical experiments and graphical interpretations feature the optimum allocation policy and the cost minimizing reserved quantity under such policy.
    • Impact of the regulatory framework for transmission investments on the cost of renewable energy in the EU.

      Saguan, Marcelo; Meeus, Leonardo (Energy Economics, 2014)
      Under the current regulatory frame in the EU, transmission planning is done at the national level to maximize national welfare, rather than European welfare. In this paper, we develop a competitive equilibrium model that calculates the impact of this imperfect regulatory framework on the cost of renewable energy. We apply the model to a power system with two interconnected zones, and find that the impact is case specific, but significant. We also find that the negative impact of national transmission planning on the cost of renewable energy is more significant in a state of the world in which Member States trade renewable energy, but that this negative effect is much smaller than the positive effect of renewable energy trade between Member States. We conclude that the imperfect regulatory framework for transmission investment is a significant cost for renewable energy in the EU, but that it should not stop Member States from trading renewable energy.
    • Implementing the European internal energy market in 2005-2009, a proposal from Academia

      Glachant, Jean-Michel; Belmans, Ronnie; Meeus, Leonardo (European Review of Energy Markets, 2007)
    • Implicit auctioning on the Kontek Cable: third time lucky?

      Meeus, Leonardo (Energy Economics, 2011)
      Implicit auctioning in Europe is about eliminating cross-border trade inefficiencies by internalizing cross-border trade into the day-ahead auction procedures of the Power Exchanges that are already organizing trade nationally. On the Kontek Cable, implicit auctioning has first been implemented with "no coupling" between the relevant Power Exchanges, followed by a "volume coupling" implementation, and finally a "one way price coupling" implementation that is still operational today. The main contribution of this paper is to compare the theoretical properties of these three implementations and to analyze their performance empirically. We find that the third implementation is significantly outperforming the previous two implementations, but in this third implementation stakeholders partly abandoned the "volume coupling" approach they initially believed to be a viable alternative and institutionally easier to implement