The Erasmus Centre for Future Energy Business brings together an integrated range of research disciplines, together with real-world practitioners and decision-makers, to provide solutions for tomorrow’s energy markets. The dynamism and complexity of energy markets, and the shifting landscape they operate in, requires a broad spectrum of knowledge combined with cutting edge research techniques and technologies. Our aim is to clear a path through the complexity to allow informed choices to be made, and at the same time provide an arena for the evolution of theory.
Market simulations enable us to explore scenarios for the energy markets of the future. We’re sure they will be highly complex, interconnected social systems in which participants constantly compete, adapt, and learn from each other.
Electronic trading and communication systems have already speeded up these processes dramatically, and have increased the amount of information factored into every decision.
At the same time, exciting new technologies have led to more decentralisation. Small-scale energy production and e-mobility have led the way. The energy business responds in real time – and this presents a challenge to practitioners, policy makers, and energy market researchers. Their traditionally static methods for analysing markets and making decisions fall short in this situation, but our simulations enable us to model the kind of market conditions – and the enormous amount of information – that the energy revolution will bring. We’re finding out:
- Are the markets’ economic signals strong enough to align consumption and production in real time?
- How can energy portfolios be balanced when the proportion of energy from intermittent renewables increases?
- How can the industry evaluate pricing strategies and competitor’s responses?
- What will be the impact of smart metering, dynamic pricing, and controllable capacities?
Energy markets can be modelled in great detail using computational models. Market participants (‘agents’) can then use powerful simulation techniques using millions of different scenarios.
Being able to run simulations using millions of market conditions and scenarios – investigating the effects of producer and consumer behaviour – helps us to find out how the markets' dynamics work.
Researchers and practitioners are increasingly turning to these computational models of energy markets to answer their questions. The ECFEB is in the lead for the design of Power TAC, an ongoing trading agent competition (TAC) that provides a test bed for the design of power markets and trading strategies.
The Erasmus Centre for Future Energy Business is uniquely positioned at the intersection of Management Science, Economics, and Computational Modelling. Together with the Erasmus Research Institute of Management and our partners in academia and the public and private sector, the Centre can draw on first-rate experts in all three fields.
- Energy Information Systems
- Energy Markets
- Energy Finance & Tradings
- Energy Network and Management
- Revenue & Demand Management
With these five streams we connect to the future energy business and support projects to measure performance in practice to shape the transformation of the energy market as shown in the model below.