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Negawatt Trading in the Energy Market: Implementation Challenges and Prospects

A special issue of Energies (ISSN 1996-1073). This special issue belongs to the section "C: Energy Economics and Policy".

Deadline for manuscript submissions: closed (31 December 2022) | Viewed by 4626

Special Issue Editors


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Guest Editor

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Guest Editor
Department of Information Technology, Delhi Technological University, Delhi 110042, India
Interests: software engineering; IoT; cybersecurity; smart grid

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Guest Editor
Department of Information Technology, Delhi Technological University, Delhi 110042, India
Interests: power quality; renewable energy; distributed generation; power electronics; electrical machines

Special Issue Information

Dear Colleagues,

In the smart grid era, consumers are becoming an integral part of the energy market. They can buy what they need, sell out their excess energy, and trade the right to buy to other proactive consumers (prosumers). “Negawatt trading” is a specific trading mechanism for trading the right to buy energy instead of any physical exchange of energy. It increases consumer choice and control and significantly reduces the barriers for consumers to participate in local energy trading. In this way, they can become “prosumers” by using negawatts to replace the megawatt as an equivalence of production. It is a good way for consumers who cannot afford solar or batteries to contribute to, and benefit from, a more transactive grid. The cost and other contextual barriers to participation are far lower, in principle, than having to install solar or batteries, but they can still receive comparatively significant benefits (e.g., in the form of reduced energy costs). We see this as being very important for achieving energy equity in the distributed energy future. Implementing negawatt provides flexibility and freedom to choose the right time for demand minimization, selling price, and trading of the right to buy energy with others. This paradigm provides more control to the prosumers in energy trading. Prosumers can trade with either the grid or other prosumers in the network using a peer-to-peer interface. As a result, prosumers can participate in negawatt trading and reap their expected rewards through flexible control of the energy market. This simple revenue stream drives energy market players’ focus towards saving electricity, innovative business techniques for identifying the most cost-effective solutions to reduce electricity use.

In this Special Issue, the challenges and potential of establishing negawatt trading mechanisms in today’s energy market will be addressed. The exploration of  recent technological advances (e.g., artificial intelligence, distributed ledger, grid-interactive buildings, 5G technologies in the efficient deployability of negawatt trading). We aim to provide a multidisciplinary view of the possibility of negawatt trading in energy markets, which will eventually help to improve smart grids’ energy efficiency.

Topics covered include but are not limited to the following. 1. Prosumer-focused energy management: a) grid-interactive efficient buildings; b) social motivations for negawatt sharing between prosumers; c) secure information exchange and monetary transactions; d) fair pricing mechanisms; e) specialized marketplace for peer-to-peer negawatt sharing; f) social media platforms; g) behavioral economics; h) uniform frameworks for trading both watts and negawatts. 2. Effect of technological advancements: a) distributed ledger technology (DLT); b) blockchains; c) high-speed communication (5G); d) Internet of Things (IoT); e) artificial intelligence (AI); f) distributed energy sources; g) game theory; h) double auction.

Prof. Dr. Vijayakumar Varadarajan
Prof. Dr. Kapil Sharma
Prof. Dr. Mukhtiar Singh
Guest Editors

Manuscript Submission Information

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Published Papers (1 paper)

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Research

19 pages, 3618 KiB  
Article
An Empirical Analysis of the Effects of Energy Price Shocks for Sustainable Energy on the Macro-Economy of South Asian Countries
by Arodh Lal Karn, Bhavana Raj Kondamudi, Ravi Kumar Gupta, Denis A. Pustokhin, Irina V. Pustokhina, Meshal Alharbi, Subramaniyaswamy Vairavasundaram, Vijayakumar Varadarajan and Sudhakar Sengan
Energies 2023, 16(1), 363; https://0-doi-org.brum.beds.ac.uk/10.3390/en16010363 - 28 Dec 2022
Cited by 2 | Viewed by 2053
Abstract
Energy prices (EPs) play an imperative role in South Asian Country (SAC) Gross Domestic Product (GDP). This research empirically examines the influence of sustainable energy price shocks (EPSs) on macroeconomic indicators. The study is to forecast the impact of EPS on macroeconomic indicators [...] Read more.
Energy prices (EPs) play an imperative role in South Asian Country (SAC) Gross Domestic Product (GDP). This research empirically examines the influence of sustainable energy price shocks (EPSs) on macroeconomic indicators. The study is to forecast the impact of EPS on macroeconomic indicators from 1980 to 2020. The analysis is carried out by employing the Vector Auto-Regression (VAR) approach. Impulse Response Functions (IRFs) results indicate that EPS decreases Gross Domestic Product (GDP). They exist in the short run and the long run. This research study’s overall findings suggest that high EPSs have a negative impact on GDP. The study implies that policymakers should develop, adopt, and initiate some imperatives to control the unanticipated volatility and movements in EP. The study highlights that policy should be designed to prevent fluctuations in sustainable EP and plan conservative energy policies that motivate discovering alternative energy sources to meet increasing energy demand and improve economic growth. Full article
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