A Methodological Approach to the Assessment of the Impact of Digital Technologies Development in Energy Industry on Electricity Price and Demand in a Region

Abstract

The relevance of this study is due to the importance of assessing the prospective dynamics and structure of demand for energy carriers when developing and making strategic decisions in the field of energy and economic security of the country and its regions. The advance of digital technology redefines the properties of electric power supply systems, erases the boundary between electric power producers and consumers, and impacts the formation of electricity price and demand in the region. This study presents a method of electricity costing in the regional power system, which serves as an integral part of the approach to assessing the impact of intelligent systems development on the demand for electricity in the region. The approach is unique in that it simulates the behavior of electricity consumers and producers of various types as they pursue their own interests and assesses the impact of this behavior on the demand and price of electricity in the regional power system. Determining the cost of electricity in the system is based on the consistent alignment of the required amount of electricity consumption with the capabilities of producers seeking to achieve their best economic performance. Each producer is described as an optimization model, which is a standalone agent in a multi-agent power system model.

Keywords

• digital technology
• smart grids
• active consumer
• optimization
• agent-based approach
• power demand
• price