Using insurance to manage reliability in the distributed electricity sector: Insights from an agent-based model
Rolando Fuentes,Abhijit Sengupta +1 more
TLDR
In this paper, the authors proposed a business model where utilities offer insurance to semi-independent, yet risk averse households against the prospect of a blackout, when a pay-as-you-go system is no longer available.About:
This article is published in Energy Policy.The article was published on 2019-07-15 and is currently open access. It has received 6 citations till now. The article focuses on the topics: Willingness to pay & Business model.read more
Citations
More filters
Journal ArticleDOI
Roadmap on community-based microgrids deployment: An extensive review
D.A. Perez-DeLaMora,J. Emilio Quiroz-Ibarra,Guillermo Fernández-Anaya,E. G. Hernandez-Martinez +3 more
TL;DR: This literature review analyses agent-based model systems with distinct approaches that model, control, and supervise microgrids, establishing a viewpoint for the transition to renewable energy, which engulfs energy security, and technology adoption.
Journal ArticleDOI
Insuring a Small Retail Electric Provider’s Procurement Cost Risk in Texas
TL;DR: In this article , the authors proposed an insurance that a small and risk-averse retailer in Texas (i.e., a retail electric provider) may buy to prevent financial insolvency caused by inadequate risk management.
Proceedings ArticleDOI
Insurance Contract for High Renewable Energy Integration
TL;DR: In this article , the authors adopt the contract theory to elicit users' private reliability preferences, and study how the utility can jointly optimize the insurance contract and the planning of renewable energy.
An Insurance Paradigm for Improving Power System Resilience via Distributed Investment
TL;DR: In this paper , the authors propose an insurance framework to align residual outage risk exposure with locational incentives for distributed investment in large-scale electricity systems to improve consumer welfare outcomes in the face of growing risks from extreme events via investment in distributed energy.
Posted Content
On the Design of an Insurance Mechanism for Reliability Differentiation in Electricity Markets.
TL;DR: In this paper, a resource adequacy mechanism for the electricity sector using insurance risk management frameworks that is adapted to a future with variable generation and flexible demand is proposed. But, the proposed scheme is not suitable to exploit the growing flexibility and heterogeneity of load enabled by advancements in distributed resource and control technology.
References
More filters
Journal ArticleDOI
Anomalies: Risk Aversion
Matthew Rabin,Richard H. Thaler +1 more
TL;DR: The authors show that risk aversion is not plausible in most applications, since anything more than economically negligible risk aversion over moderate stakes requires a utility-of-wealth function that is so concave that it predicts absurdly severe risk aversion for very large stakes.
Journal ArticleDOI
Energy cultures: A framework for understanding energy behaviours
TL;DR: The Energy Cultures framework as mentioned in this paper is a conceptual framework that aims to assist in understanding the factors that influence energy consumption behavior, and to help identify opportunities for behaviour change, while drawing also from lifestyles and systems thinking.
Journal ArticleDOI
Demand side management—A simulation of household behavior under variable prices
TL;DR: In this article, the authors investigate the impact of smart appliances and variable prices on electricity bills of a household and show that for households the savings from equipping them with smart appliances are moderate compared to the required investment.
Journal ArticleDOI
A critical survey of agent-based wholesale electricity market models
Anke Weidlich,Daniel Veit +1 more
TL;DR: Agent-Based Computational Economics (ACE) is a fairly young research paradigm that offers methods for realistic electricity market modeling as discussed by the authors, and a growing number of researchers have developed agent-based models for simulating electricity markets.
Journal ArticleDOI
Devolution of environment and resources governance: trends and future
TL;DR: In this article, the authors identify some of the major processes leading to adaptive co-management, including deliberation, visioning, building social capital, trust and institutions, capacity-building through networks and partnerships, and action-reflection-action loops for social learning.