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Energy storage plays a crucial role in the safe and stable operation of power systems under high renewable energy penetration. Unlike conventional energy sources, the special physical characteristics of battery energy storage make it challenging to apply in practice. Some countries have been developing battery energy storage for a long time, and it is worthwhile to learn from the policies and market mechanisms for the development of battery energy storage to clear the obstacles for large-scale development and participation in the power market. This study focuses on the current status of battery energy storage, development policies, and key mechanisms for participating in the market and summarizes the practical experiences of the US, China, Australia, and the UK in terms of policies and market mechanisms. Then, the challenges of the current development of battery energy storage are analyzed, and suggestions are made in terms of policies and market mechanisms, so as to provide a reference for the development of battery energy storage in other countries or regions. [ABSTRACT FROM AUTHOR]

The merit-order approach in the electricity market, which is in widespread use across the EU27 and the UK, has proven to be somewhat economically problematic in the context of the Russo-Ukrainian War. The massively increased gas prices since summer 2022—in the context of Russian supply cuts to the EU—has led to an abnormally high electricity price. Using the merit order approach, the price of electricity increases enormously if, as is often the case, gas is the last type of energy still realized in power generation; this leads to artificial increases in returns for all other types of energy providers whose output is used in power generation. Gas price increases by Russia or Russian supply cuts to the EU can increase the price of electricity and also the rate of inflation, as well as depress real income. The electricity price shock can be countered by switching—temporarily—to a modified regulation of the electricity market for a few years with a gas price subsidy in the electricity market. In a macroeconomic analysis, we identify both the output losses and adverse distributional effects of a gas price hike and find that a gas price subsidy is superior in stabilizing output and employment compared to a transfer; it also at least partially addresses certain distributional issues by reducing windfall profits in the electricity market. The study advocates a combination of gas price subsidies only in the electricity market and targeted transfers to households to meet both efficiency and distributional targets. The macro-analysis findings presented herein should be considered carefully, as they could minimize the welfare losses in the EU and the UK. As regards the expansion of renewable energy-based electricity, it is shown herein that the cost-differential between gas-fired power stations and renewable electricity is critical—large cost differentials imply barriers for the expansion of electricity generation from renewables unless there is a price regulation of electricity. There is the potential for an inefficient adjustment path due to nonlinearities. With a proposed narrow gas price cap for the electricity market only, the associated initial deficit related to necessary subsidies is, of course, much smaller than in the case of a general gas price cap. [ABSTRACT FROM AUTHOR]

This paper reports on tensions between decarbonisation and energy poverty priorities in Great Britain's liberalised electricity markets. Switching electricity suppliers in this market can result in significant benefits for those on bad deals. Further benefits are determined by the regulator. However, many of the energy poor lack the capabilities to switch and access these benefits. Community organisations play an important role in providing such access through remedial action. Using the capabilities approach, this paper combines quantitative and qualitative organisational data analysis at a community level to reveal an increasing share of the population who could benefit from switching and who agree to switching. At the same time, eligibility for one-off discounts on electricity bills to support the energy poor has increased sharply in recent years. This data points towards climate mitigation policies and market structures which benefit wealthier groups at the expense of more deprived groups who lack capabilities. At the micro scale, data access and intermediation at various levels and scales can help support more targeted interventions that facilitate well-being and enhanced capabilities. At the macro level, liberalised retail electricity markets need to be accommodated by safety nets and supportive institutional arrangements to avoid competitive pressures translating into complexity and opacity for consumers. Failure to equitably address capability conflicts, also framed as energy justice tensions and trade-offs, risks reinforcing and creating new injustices. [ABSTRACT FROM AUTHOR]

Background: Beyond Great Britain, Brexit could also have ripple effects on the electricity systems of certain other EU member states. This paper investigates the possible effects of reduced growth in interconnectivity between Great Britain and mainland Europe by 2030 on the electricity system in GB and across other EU member states in addition to the effects of Pound depreciation. Effects are analyzed across a "Green Scenario" and "Blue Scenario" in 2030, based on the ENTSO-E (European Network of Transmission System Operators-Electricity) 10-year development plans. There is a greater expansion of nuclear and renewables in Green than in Blue and, in Blue, the British CO2 price is higher than in the EU. Within each scenario, there are four variants: full vs. reduced expansion of interconnection capacity, in combination with no devaluation and 10% depreciation of the British Pound. The EMME (Electricity Market Model for Europe) is used to model these impacts across the different scenario variants. Results: Interconnector utilization is more volatile in the Green Scenario variants, leading to concerns about investor incentives, especially given the increased uncertainty under Brexit. In terms of electricity prices, GB consumers lose out across both Blue and Green scenario variants, whereas EU and GB producers both gain and lose in different variants. Across the Green Scenario variants, EU neighbors' trade balances with GB deteriorate slightly, but the impact is far stronger in Blue due to a loss of opportunities to export power. GB sees significant increases in electricity costs across scenario variants. Green scenario variants offer potential for modest emission reductions in certain EU nations, whereas Blue Scenario variants lead to greater emission reductions in the EU neighbors which contrasts with a sharp rise in GB emissions. Conclusions: There is a significant link between NTC expansion and wholesale prices. Delayed or cancelled NTC expansion could negatively affect the GB power system's low-carbon transition. Pound depreciation and reduced expansion of NTCs lead to shifts in generation-related CO2 emissions. A higher cost burden for electricity is a risk for GB, whereas, for EU neighbors, their trade position with the UK risks deteriorating. [ABSTRACT FROM AUTHOR]

Joint Institutional Frameworks governing the EU's relations with third countries often fail to address important issues of sectoral governance. Non‐EU countries benefit from access to EU sectoral bodies, but this is limited, and alternative avenues of co‐operation are therefore needed. This article contributes to existing research on EU bilateral relations, which has thus far not paid sufficient attention to the external face of sectoral governance. The qualitative case comparison studies the well‐established, yet increasingly politicized bilateral co‐operation with Switzerland in order to draw insights for UK–EU relations, and contrasts two strategically important areas of market integration, namely electricity and financial markets. The findings show that politicization and (external) disintegration have repercussions for allegedly 'technical' areas of co‐operation where formalized requirements for EU sectoral bodies, public and private, become more stringent and less permissive to accommodate informal modes of co‐operation that in the past facilitated external participation. [ABSTRACT FROM AUTHOR]

During peak electricity demand periods, prices in wholesale markets can be up to nine times higher than during off-peak periods. This is because if a vast number of users is consuming electricity at the same time, power plants with higher greenhouse gas emissions and higher system costs are typically activated. In the UK, the residential sector is responsible for about one third of overall electricity demand and up to 60% of peak demand. This paper presents an analysis of the 2014–2015 Office for National Statistics National Time Use Survey with a view to derive an intrinsic flexibility index based on timing of residential electricity demand. It analyses how the intrinsic flexibility varies compared with wholesale electricity market prices. Findings show that spot prices and intrinsic flexibility to shift activities vary harmoniously throughout the day. Reflections are also drawn on the application of this research to work on demand side flexibility. [ABSTRACT FROM AUTHOR]

The UK Competition and Markets Authority in 2016 calculated a detriment of £1.4 billion–2 billion in Great Britain's retail energy market, attributed to weak customer response. The government in 2019 imposed a tariff cap until competition is effective. I argue that the cap was a mistake: there was no such detriment and there are valid reasons for customers not changing supplier. The market was not previously uncompetitive and inefficient as suggested. The cap has rendered the sector loss‐making and led to supplier exit. The assessments of effective competition by the Office of Gas and Electricity Markets have been arbitrary and implausible. Some alternative ways ahead are noted, but latest government policy invokes behavioural economics to propose even greater intervention. A postscript discusses dramatic recent developments. [ABSTRACT FROM AUTHOR]

In this work, we study the profitability of energy storage operated in the Nordic, German, and UK electricity day-ahead markets during 2006-2016. During this time period, variable renewable energy sources (vRES) have been rapidly penetrating the markets and increasing the volatility of the residual load, which is often assumed to be associated with improving financial viability of energy storages. However, storage operator profits are not publicly available, in particular not at plant level. We therefore develop a linear optimisation model which maximises profits from arbitraging hourly prices and use the model output of profits and storage operating hours in further econometric analyses. This is a novel approach merging two strands of literature (optimisation and econometrics) in a single energy storage study. Specifically, we quantify and disentangle the effects of electricity demand, solar and wind generation, the spread between gas and coal prices, carbon emission prices and structural breaks on profits and operation of 1-13MWh/MW energy storages. Among others we find that solar generation is associated with lower profits but higher operating frequency of energy storages in Germany. Wind power generation is associated with positive effects on profits in the UK and Germany. vRES does not affect profits or operation of new Nordic energy storages. [ABSTRACT FROM AUTHOR]

Summary: To forecast the demand response of a residential customer, forecasted load profiles must first be calculated and the demand response produced by residential energy management devices determined. Finding an efficient method to select an optimal forecasted load profile to assess the demand response of these devices is a fundamental issue currently overlooked. Poorly forecasted load profiles can affect customer compensation for demand reduction, estimation of retail profits and allocation and reconciliation processes for electricity markets. This research resolved to develop an economic model for selecting an optimal forecasted load profile from which the demand response of residential energy management devices can be determined. Using 2 years of half‐hourly electricity consumption data for 5379 households obtained from the "Low Carbon" London project (UK), a novel economic model was created to assess the economic advantage of nine different forecast methods. Results suggest that when creating forecasted load profiles to measure demand response of these devices the sociodemographic of customers, tariff type and the operational objectives of the device must be taken into account to maximize the economic benefit of demand response initiatives for the customer and retailer. [ABSTRACT FROM AUTHOR]

We develop a model for the industry dynamics in the electricity market, based on mean-field games of optimal stopping. In our model, there are two types of agents: the renewable producers and the conventional producers. The renewable producers choose the optimal moment to build new renewable plants, and the conventional producers choose the optimal moment to exit the market. The agents interact through the market price, determined by matching the aggregate supply of the two types of producers with an exogenous demand function. Using a relaxed formulation of optimal stopping mean-field games, we prove the existence of a Nash equilibrium and the uniqueness of the equilibrium price process. An empirical example, inspired by the UK electricity market is presented. The example shows that while renewable subsidies clearly lead to higher renewable penetration, this may entail a cost to the consumer in terms of higher peakload prices. In order to avoid rising prices, the renewable subsidies must be combined with mechanisms ensuring that sufficient conventional capacity remains in place to meet the energy demand during peak periods. [ABSTRACT FROM AUTHOR]

UK sectoral regulatory authorities are hybrid communities of, among others, lawyers and economists. Since the liberalization of essential services, expert economists enjoy broad discretionary powers in advancing the agencies' broad statutory objectives. Yet, despite the significant societal impact of economic regulation, existing scholarship in the fields of competition law and regulation and public law has, with very few exceptions, disregarded these actors and the very essence of their work. This article aims to address this gap in the literature by blending theoretical with empirical insights deriving from 14 semi-structured elite interviews with regulatory economists in the regulatory agencies for energy (Office for Gas and Electricity Markets), telecoms (Office for Communications), and water (Office of Water Services). It explores the increased reliance on economics in the regulatory decision-making process and the impact this has had on the authorities' decision-making and discretion, when making complex trade-offs between the various goals of the regulatory enterprise. In doing so, it puts forward a theoretical framework inspired by Craig Parsons' typology of political action so as to identify and examine the nature and scope of the constraints that inform and shape the influence of economics in the exercise of regulatory discretion. This endeavour is significant in the sense that it is the first of its kind and, in that it provides a normative framework of analysis that can be applied in other areas of regulation heavily infused with and influenced by economic evidence and analysis, such as 'pure' competition law enforcement by both sectoral and competition authorities. [ABSTRACT FROM AUTHOR]

This research provides new techno-economic insights into integrating flexible combined-cycle gas turbines with post-combustion carbon capture and storage (CCGT-CCS) for low-carbon power systems. This study developed a versatile unit-commitment optimisation model of CCGT-CCS. This research highlights the model's adaptability, accommodating diverse techno-economic configurations, feed gases (e.g., biomethane or fossil natural gas), carbon capture rates, and policy instruments. This generalisation empowers seamless application in various policy and market contexts, making the model a potent tool for researchers and policymakers. While the case study focuses on the UK, the findings are relevant for most low-carbon power systems with variable renewable supplies. Analysing the UK's net-zero scenarios from 2030 to 2050, the economic viability of flexible CCGT-CCS was highlighted. Intertemporal flexibility proves highly valuable with greater electricity price volatility, with a total ROI range of 81–246 %, surpassing the CCGT-CCS plant's ROI (7–64 %). A flexible solvent storage solution should be seen in the context of the overall system 'flexibility' requirements of a low-carbon power system. On a cost basis, solvent storage represents just a fraction of the capital costs of more "mainstream" energy storage technologies, such as lithium-ion batteries or hydro-pumped storage, while CCGT-CCS offers firm power. Overall, while seen as a rather technical solution, if abated fossil fuel generation is to be part of a future low-carbon power system, having this flexibility adds economic benefits not just to operators but also improves overall system security and complements high shares of variable renewables on the grid. [Display omitted] • Solvent storage in CCS can maximize profits from fluctuating low-carbon electricity markets. • Total return on investment from solvent storage greatly exceeds that of abated CCGT alone. • Solvent storage capital cost is a fraction of many "mainstream" energy storage technologies while providing firm power. • Flexible CCS with solvent storage boosts investor returns, system security, and aids renewable integration. [ABSTRACT FROM AUTHOR]

As regulatory constraints limit energy communities' (ECs) participation in wholesale markets, these might rely on retailers' supply when local generation falls short. As balancing responsible parties, retailers are financially responsible for matching the volumes traded in the market with customers' actual needs. However, inadequate information about ECs' operations may complicate this task. This paper explores the interactions and financial implications for retailers under contractual agreements with ECs. We design a novel modelling framework, consisting of: (1) a stochastic model of a strategic retailer participating in the day ahead market considering imbalance costs, (2) a community model optimising its operations based on the agreed tariff subscription with the retailer, and (3) a simulation of the imbalance settlement process. The frameworks' applicability is demonstrated via a case study in London (UK). Results indicate that retailers' primary source of profit loss arises from the increased self-sufficiency of customers belonging to EC. On the other hand, deviations from the market commitments exerts limited effects on retailers financial outcomes. This is explained by the earnings obtained by providing passive balancing services to system operators. Also, the paper underscores retailers' need to reassess their business models, looking beyond merely establishing operational data exchange with ECs. • A unique modelling framework representing retailers and Energy Communities (ECs) interactions. • EC increase in self-sufficiency is the main driver for retailers' loss of profits. • The single imbalance price mechanism reduces retailers' loss of profits. • Retailers' information on EC operations does not lead to substantial cost savings. • Retailers might rethink their business strategies with ECs to keep their profit level. [ABSTRACT FROM AUTHOR]

Electricity markets in liberalised nations are composed primarily of private firms that make strategic decisions about how to secure competitive advantage. Energy transitions, driven by decarbonisation targets and technological innovation, will create new markets and destroy old ones in a re-configuration of the power sector. This research suggests that by 2050 up to 21 bnGBP per year of new financial value is available in the UK electricity system, and that depending on scenario, these new values represent up to 31% of the entire electricity sector. To service these markets business model innovation and new firm strategies are needed in electric power provision. Energy scenarios can inform strategic decisions over business model adaptation, but to date scenario modelling has not directly addressed firm strategy and behaviour. This is due in part to neo-classical assumptions of firm rationality and perfect foresight. This research adopts a resource based view of the firm rooted in evolutionary economics to argue that quantifying the relative size of the markets created and destroyed by energy transitions can provide useful insight into firm behaviour and innovation policy. [ABSTRACT FROM AUTHOR]

Offshore wind energy is experiencing a rising importance for many electricity markets. While the effects of wind energy overall on electricity prices have been thoroughly studied, it remains unknown if offshore wind has a different impact on electricity prices than onshore wind. The aim of this paper is therefore to estimate the effect of offshore wind energy on wholesale electricity prices and how it differs to the impact of onshore wind. For this purpose, we propose three time series models to describe the development of electricity prices in Germany, Western Denmark and Great Britain from 2015–2018. We focus on the impact on the level and volatility of electricity prices using different time series models such as AR-GARCH or ARMA. Following these models, we can identify that onshore and offshore wind power do have a significantly different impact on wholesale electricity prices in the investigated countries. Based on our results, we discuss the implications of our findings for electricity markets and policy makers. • The results indicate different impacts of off- and onshore wind on wholesale prices • Offshore wind tends to reduce price levels and price volatility more than onshore • The differential impact of offshore wind is mainly due to a more constant feed-in [ABSTRACT FROM AUTHOR]

This paper examines the causal interactions between energy consumption due to cryptocurrency mining activity and electricity return and volatility patterns across the power markets in the U.S., U.K. and Europe. We find that the effect is heterogeneous across the different power markets examined, while the effect of mining activity is consistently focused on return volatility. Accordingly, our findings provide robust evidence of the volatility effects of mining activity in power markets, suggesting that the crypto mining-power market nexus primarily entails risk effects, an issue of particular concern for hedgers whose goal is to stabilize energy costs in their operations. [ABSTRACT FROM AUTHOR]

In this paper we develop fundamental quantile regression models for the UK electricity price in each trading period. Intraday properties of price risk, as represented by the predictive distribution rather than expected values, have previously not been fully analyzed. The sample covers half hourly data from 2005 to 2012. From our analysis we are able to show how the sensitivity towards different fundamental factors changes across quantiles and time of day. In the UK the supply of electricity is to a large extent generated from coal and gas plants, thus the price of gas and coal, as well as the carbon emission price, are included as fundamental factors in our model. We also include the electricity price lagged by one day, as well as demand and margin forecasts. We find that the sensitivities vary across the price distribution. Our findings also suggest that the sensitivity to fundamental factors exhibit intraday variation. We find that the sensitivity to gas relative to coal is higher in high quantiles and lower in low quantiles, as well as some indications of market power being exercised during peak hours. We have demonstrated a scenario analysis based on the quantile regression models, showing how changes in the values of the fundamentals influence the electricity price distribution. [ABSTRACT FROM AUTHOR]

The process of Electricity Market Reform instigated in 2010 is leading to fundamental reforms to the UK electricity market. Despite its previous strong presence in the policy process, the British energy market regulator, OFGEM, appears to have only a minimal role in the implementation of these reforms. This article reviews the history of OFGEM, including expectations for the agency when it was established and how it evolved over time. From this perspective, several factors that might have contributed to OFGEM's apparent marginalisation are identified. These include perceptions of a poor track record, a tendency of governments to bypass the regulator for decisions deemed important, and the subordination of economic issues to climate-change priorities. [ABSTRACT FROM AUTHOR]

Promoting competition among electricity producers is crucial for ensuring allocative efficiency and lower electricity prices. This paper empirically examines the wholesale electricity market of England and Wales in order to analyze to what extent regulatory reforms were successful at promoting competition among electricity producers. As a theoretical benchmark we consider a duopoly case, based on which a regression model is specified. The estimation of the regression model allows for documenting new results about the impact of regulatory reforms on the incentive and disincentive to exercise market power by electricity producers during the liberalization process. [ABSTRACT FROM AUTHOR]

Prosumer-centred electricity market models such as peer-to-peer communities can enable optimized supply and demand of locally generated electricity as well as an active participation of citizens in the energy transition. An important element of active participation is the improved ability of community members to identify and choose who they transact with in a much more granular way than is usual. Despite this key novelty and the social core of prosumer-centred markets, little is known about how citizens would trade with different actors involved in the system. This article reports a preregistered cross-national experiment investigating individual trading preferences in a peer-to-peer community with a variety of private and non-private trading actors. The data from the United Kingdom (n = 441) and Germany (n = 440) shows that set buying and selling prices strongly vary, pointing to three systematically different trading strategies that individuals apply as a function of involved trading actor. Findings moreover reveal that trading decisions are determined by individuals' political orientation, place attachment, and climate change beliefs as well as individual differences in trust in the involved trading actor. Finally, the results illustrate high consistency in trading preferences across nations. However, nation-level differences emerged when decisions were made publicly visible, emphasising the need to consider context-effects in peer-to-peer system design. The findings have implications for the development of prosumer-centred energy models and the design of interventions to increase citizen participation across national contexts. • Preregistered study on actor-specific price settings in P2P energy communities. • Set buying and selling prices strongly depend on involved trading actor. • Identification of three trading patterns that are applied depending on trading actor. • The impact of private vs. public price settings depends on national context. • Political orientation, place attachment, beliefs, and trust influence decisions. [ABSTRACT FROM AUTHOR]

Electricity Market is structured to fund reliable electricity supply, meet the need of consumers, ensure the affordability of end-users, and support national economic development. In recent years, to meet challenging emission target set by Government, power system in the UK has a rapid increase of integration with various-scale Renewable Energy Sources (RESs) and Energy Storage Systems (ESSs), which pushes the electricity market reform to accommodate the changes, encourage renewable energy integration, adopt new technologies, stimulate consumers participation, and ensure the power system resilience. The paper reviews the history of UK electricity market evolution, driving factors of reform, and the trend of current electricity market reform. In history, the UK electricity wholesale market has experienced three significant reform stages, which are introducing the Electricity Pool of England & Wales (the Pool) in the 1980s, implementing the New Electricity Trading Arrangements (NETA) in the 2000s, and performing the Electricity Market Reform (EMR) in 2013. To address the new emerging challenges in decarbonising power generation, the paper explains and analyses on-going electricity market changes and the trend for future electricity market reform. • Comprehensive review of UK electricity market mechanism and its history of evolution. • Explanation of the major UK electricity market reforms and the rational for all the reforms. • Clarification of the importance of electricity market in encouraging increases of renewable energy integration. • Analysis the trend for the future electricity market evolution. [ABSTRACT FROM AUTHOR]

This paper discusses a novel methodology for the analysis of energy storage system. This methodology combines engineering and economic modelling to assess the relative economic performance of plant designs within a simulated UK electricity market. It presents a case study that explores whether a nuclear power plant can be combined with a liquid air energy storage plant to allow the resultant hybrid plant to provide a load-following electricity supply. The approach adopted is distinct from much of the work on conventional load following nuclear power plant operations, as in our case the underlying nuclear energy production does not vary. The methodology expands the previous literature by performing market-led system optimisation to best design the output profile of the hybrid plant to improve economic performance in the UK electricity grid. Whilst this combined modelling approach has been demonstrated in the context of a specific plant design, this methodology might be applied to any asymmetric energy storage system to assess its economic viability. This work is both contrasting and complementary to the levelized cost of storage approach. Rather than providing the price at which energy must be sold to make a storage system economically viable, this approach considers how volatile the electricity spot market would have to become to make such a system profitable. The ability to explore different market conditions is a major omission from the existing literature on energy storage systems. [ABSTRACT FROM AUTHOR]

We investigate the performance of two hybrid forecasting models to predict the next-day base load electricity prices on the APX power exchange for Great Britain. Hybrid models have often been advocated as a synthetic method for forecasting, but it is an open question how well they perform at the day-ahead stage. A conventional hybrid approach combines a fundamental model, formulated with supply stack modeling, with an econometric model using data on price drivers. We extend this model to one based upon logistic smooth transition regression, which represents a regime-switching for periods of structural change. Empirical results for out-of-sample forecasting using both hybrid approaches are discussed and compared to non-hybrid time series forecasting methods. [ABSTRACT FROM PUBLISHER]

There has been considerable merger activity in EU energy markets in recent years. It could be argued that competition authorities should be required to take into account potential innovation effects of mergers. In the UK, regulators are now trying to achieve multiple objectives within the current framework. There is a danger that if markets are expected to deliver mutually incompatible objectives they will be unable to achieve any of them. [ABSTRACT FROM AUTHOR]

• Price responsiveness of electricity markets are modeled using linear regression of historic data. • Two objectives for the hub are defined, country generation distribution and hub generation distribution. • Market response to power trade for North Sea countries are estimated per hub objective. • Potential gross value generation and required cable size to the power hub are determined. • Most profitable links between the electricity markets are presented exchanging power through the hub. We research effects on the electricity market of countries surrounding the North Sea after a proposed offshore wind park in the Dogger Bank area of the North Sea has been constructed. Interconnection and generation distribution are analysed separately. The supply price of electricity for each country is calculated by a linear regression analysis to simulate the supply price for higher or lower supply. The model uses the coupling of one supply with one receiver country. Linear modelling of the electricity market combines the results for each objective to find a final state for the market. Using the historic market and weather data for 2016, the results from interconnection show an average generated value of 0.275 [M€/hour] and 82.1 [GW] of average energy flow through the hub. The results of this interconnection between the countries bring between −26% and +11% change on average electricity prices. For hub generation added in, we found an average generated value of 0.573 [M€/hour] and an average price drop of 5% for each country for an average wind power generation of 6.3 [GW] at the hub. The results show that interconnecting the similarly sized electricity markets i.e. Great Britain and Germany & the Netherlands and Denmark, where one has a higher renewable share, would bring the most price stabilization between the two as well as generate the most financial return. [ABSTRACT FROM AUTHOR]

We investigate the concept of Smart Business Networks by using Beer's Viable System Model (VSM) to analyse how such a network mitigates the affect of emergent, and therefore unforecastable, demands upon the networked businesses. We examine the requirements for network smartness, highlight some significant properties of one Smart Network and use our case analysis and concepts from systems theory to suggest some general properties such as natural stability and distributed capability. We have found that smartness is distributed and shared behavioural process standards can act to stabilise complex systems. This is important because it mitigates emergent behaviour within increasingly complex business networks. The contributions of our article apply both to academics and business practitioners and are in its illustration and investigation of one Smart Business Network including how the smart capability functions at a strategic, business process and technical level; and the use of Beer's VSM to analyse an electricity market. [ABSTRACT FROM AUTHOR]

[Display omitted] • The profile DSR estimation method features a better balance of error compared with previous methods. • Clustering of detailed usage data to create profiles is a viable approach for improving DSR estimation. • Profiles can provide greater account of estimation uncertainty compared to existing deterministic methods. In principle, Demand Side Response (DSR) is increasingly seen as a critical component of a low-carbon electricity network with renewables as main sources of generation. In practice, DSR has been slow to emerge in most electricity markets of developed and developing countries. One of the main reasons for the slow penetration of DSR is the difficulty to assess the flexibility potential of individual sites. This paper develops a new DSR estimation method which uses detailed profiles information based on data on Heating, Ventilation and Air Conditioning (HVAC) chillers in five UK hotels between 2013 and 2017 and applies a combination of clustering analysis and subsequent stochastic sampling using cluster-weighted date-based predictors. Findings show that the profile DSR estimation method features a better balance of error compared with previous methods. [ABSTRACT FROM AUTHOR]