Consumer behavior-informed methodology for studying and making long-term projections of the state of regional energy markets: its tasks, approaches, algorithms, and models

Elena V. Galperova

Melentiev Energy Systems Institute SB RAS

The relevance of the article is due to the importance of the study of the relationship between demand and prices in regional energy markets for the purposes of forming the long-term dynamics of energy demand and working out strategic decisions in the field of energy and economic security of the country and its regions. The need to develop new approaches to study the long-term state of regional energy markets is caused, among other things, by the latest in a series of energy transitions that is ongoing in the world. One of the main features of the transition is that consumers have the ability to control their energy consumption, to have energy production and storage capacity, and to interact with the power system. These new properties of consumers are changing the very system of energy supply and pricing in the energy sector.
This study describes the multi-stage methodological approach developed by the author. Each stage of the approach consists of the successive solving of an individual problem or several problems of varying importance and complexity, for each of which we have developed dedicated methods and models. The key defining feature of the approach is the possibility to return (if necessary) to the previous stage to adjust conditions or parameters. A unique feature of the approach is the joint interrelated treatment of the system of consumption and energy supply of the region and the iterative alignment of decisions made at the regional level with the energy supply system of the higher territorial level. The proposed multi-stage methodology makes it possible to determine the mutual influence of demand and prices in regional energy markets, taking into account consumer behavior and evaluates the regional price elasticity of demand for certain energy resources. This will enable one to adjust the long-term dynamics of demand for energy and will contribute to improving the validity of future options of development of the power industry and energy sector.

energy carriers, demand, consumers, distributed generation, modeling, consumption system, price

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