MSc Thesis: Feasibility Assessment of Decentralised, Layered-Decomposition Optimisation Structure for the EU Internal Energy Market
REYKJAVIK, June 05 - MSc in Sustainable Energy candidate, Henry James Noller, successfully defended his master's thesis where he performed feasibility assessment of a decentralised, layered-decomposition optimisation structure for the EU internal energy market. Henry's research was supervised by R. Morgan Greene from Reykjavik University.
Henry sets the stage, stating that Distributed Energy Resources (DERs) are becoming increasingly numerous, with many positive and negative implications for the electricity sector. With this knowledge, he proposed a decentralised, layered-decomposition optimisation structure as an alternative to the current market structure. Henry sought to show that this structure would allow local distribution areas to self-optimise their supply and demand with distributed generation.
His research explored the effects of distributed generation and investigated a regulatory framework that would adapt a layered-decomposition structure to the specifics of Europe's internal energy market. Henry found that the regulatory requirements suggested by his findings are a nodal pricing scheme, the expanded role of distribution system operators, harmonisation of the day-ahead markets, increased granularity of intraday markets to 15-minute auctions, merging of market operators, and the establishment of local markets at the distribution level that operate as energy markets, flexibility markets, and ancillary service providers.
Henry used a PEST analysis along with a decision matrix to quantitatively compare three alternative structures: a status quo “minimal DSO” structure, a grand central optimisation structure, and a decentralised layered-decomposition structure with the supporting regulatory framework. He then proposed a timeline that outlined the phases of transition for the structure's implementation. Concluding, Henry gave recommendations for further research, which are to conduct operational policy research for the coordination of local markets and to determine a market clearing optimisation formula.
Congratulations Henry on an excellent thesis project!