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The Future of Electricity Markets

  • Maria Kopsakangas-Savolainen
  • Rauli Svento
Chapter
Part of the Green Energy and Technology book series (GREEN)

Abstract

In this chapter we look at the future of electricity networks and markets. We look at the technological and economic changes related to the change from “dumb grids” to “smart grids.” We show how this technological change also changes the distribution environments into two-sided markets. We give a basic model of such two-sided electricity market. We discuss the ways this change necessitates new economic business models in distribution. We open the question of how this change to smart grid environments also relates to demand side management issues. New types of economic incentive-based contracts are necessitated. Also new types of incentive-based regulation schemes must be created.

Keywords

Smart Grid Electricity Market Distribution System Operator Local Price Virtual Power Plant 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer-Verlag London 2012

Authors and Affiliations

  • Maria Kopsakangas-Savolainen
    • 1
  • Rauli Svento
    • 2
  1. 1.Finnish Environment Institute and Thule Institute, University of OuluMartinniemiFinland
  2. 2.Department of EconomicsMartti Ahtisaari Institute of Global Business and Economics, University of OuluOuluFinland

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