Start Date
10-12-2017 12:00 AM
Description
Energy markets are currently in a state of uncertainty and flux, with the ongoing integration of volatile renewable energy sources. Where renewable resources provide sustainable benefits to achieve political targets, their recent sharp increase has pronounced challenges for efficient market integration in the electricity system. These wicked problems are of complex nature, where Green Information Systems help in analytically evaluating the supply chain performance from an efficiency and environmental perspective. We propose a multi-stage competitive equilibrium model with suppliers producing under heterogeneous operational constraints, allowing us to compare sequential market strategies of conventional and renewable producers. We find a tipping point in market efficiency while increasing the share of renewable energy resources and conduct a large scale simulation analysis. This allows to investigate the behavior of the tipping point, in terms of market efficiency and heterogeneous risk related market participant behavior, and evaluate sustainable operations of future electricity markets.
Recommended Citation
Koolen, Derck; Ketter, Wolfgang; Qiu, Liangfei; and Gupta, Alok, "The Sustainability Tipping Point in Electricity Markets" (2017). ICIS 2017 Proceedings. 14.
https://aisel.aisnet.org/icis2017/IT-and-Social/Presentations/14
The Sustainability Tipping Point in Electricity Markets
Energy markets are currently in a state of uncertainty and flux, with the ongoing integration of volatile renewable energy sources. Where renewable resources provide sustainable benefits to achieve political targets, their recent sharp increase has pronounced challenges for efficient market integration in the electricity system. These wicked problems are of complex nature, where Green Information Systems help in analytically evaluating the supply chain performance from an efficiency and environmental perspective. We propose a multi-stage competitive equilibrium model with suppliers producing under heterogeneous operational constraints, allowing us to compare sequential market strategies of conventional and renewable producers. We find a tipping point in market efficiency while increasing the share of renewable energy resources and conduct a large scale simulation analysis. This allows to investigate the behavior of the tipping point, in terms of market efficiency and heterogeneous risk related market participant behavior, and evaluate sustainable operations of future electricity markets.