IEEE Power & Energy Magazine - January/February 2021 - 63

Another major policy challenge lies in the introduction of suitable
market mechanisms at multiple geographical levels, ranging from
the European-wide level to the local community level.
benefits by establishing and promoting the concept of local
energy communities.

The TradeRES Vision
The vision of the recently initiated Horizon 2020 TradeRES
project (www.tradeRES.eu) lies in developing and testing
innovative electricity market designs that will enable the
cost-effective and secure development of a nearly 100%
renewable power system and realize the full extent of the
system-wide benefits of flexibility resources. Such market
designs should be capable of addressing the key challenges
identified in this article, including a) the missing money
problem faced by both renewable and conventional generators, b) the participation of renewable generation in ancillary
services markets and the provision of flexibility, c) the design
of effective carbon emissions markets, d) the incorporation
of small-scale distributed flexibility in energy and balancing
markets, and e) the pan-European harmonization of electricity markets and the economic utilization of cross-border
interconnections. Following the previous discussion, one of
the main objectives of the project involves the development
of an integrated European market architecture that encapsulates the pan-European market, national/regional markets,
and local energy communities in a fashion that enables the
maximum utilization of available renewable generation and
flexibility resources, as reflected in Figure 8.

Acknowledgment
This work has received funding from the EU Horizon 2020
research and innovation program under project TradeRES
(grant 864276).

For Further Reading
A. Shakoor et al., " Roadmap for flexibility services to 2030, "
Report to the Committee on Climate Change, London, U.K.,
May 2017.
F. Lopes, " MATREM: An agent-based simulation tool
for electricity markets, " in Electricity Markets With Increasing Levels of Renewable Generation: Structure, Operation,
Agent-based Simulation, and Emerging Designs, Series:
Studies in Systems, Decision, and Control, vol. 144, F. Lopes
and H. Coelho, Eds. Cham, Switzerland: Springer-Verlag,
2018, pp. 189-225.
N. Helistö, J. Kiviluoma, and H. Holttinen. " Sensitivity of
electricity prices in energy-only markets with large amounts
of zero marginal cost generation, " in Proc. 14th Int. Conf.

january/february 2021

European Energy Market (EEM), Dresden, Germany, 2017,
pp. 1-6. doi: 10.1109/EEM.2017.7981893.
A. Papavasiliou, Y. Smeers, and G. Bertrand, " An extended analysis on the remuneration of capacity under scarcity
conditions, " Econ. Energy Environ. Pol., vol. 7, no. 2, pp.
1-19, 2018.
G. Morales-España and J. Sijm, " Simultaneous reduction of
emissions and costs by curtailing renewables in optimal operation of power systems, " in Proc. ISGT-Europe2020: IEEE PES
Innov. Smart Grid Technol. Europe, Den Haag, The Netherlands, Oct. 2020, pp. 1-6.
J. C. Richstein, E. J. L. Chappin, and L. J. De Vries,
" Cross-border electricity market effects due to price caps
in an emission trading system: An agent-based approach, "
Energy Pol., vol. 71, pp. 139-158, Aug. 2014. doi: 10.1016/j.
enpol.2014.03.037.

Biographies
Goran Strbac is with Imperial College London, United
Kingdom.
Dimitrios Papadaskalopoulos is with Imperial College
London, United Kingdom.
Nikolaos Chrysanthopoulos is with Imperial College
London, United Kingdom.
Ana Estanqueiro is with the National Laboratory of Energy and Geology, Amadora, Portugal.
Hugo Algarvio is with the National Laboratory of Energy and Geology, Amadora, Portugal.
Fernando Lopes is with the National Laboratory of Energy and Geology, Amadora, Portugal.
Laurens de Vries is with Delft University of Technology,
The Netherlands.
Germán Morales-España is with the Netherlands Organisation for Applied Scientific Research, The Hague, The
Netherlands.
Jos Sijm is with the Netherlands Organisation for Applied Scientific Research, The Hague, The Netherlands.
Ricardo Hernandez-Serna is with the Netherlands Organisation for Applied Scientific Research, The Hague, The
Netherlands.
Juha Kiviluoma is with the VTT Technical Research
Centre, Espoo, Finland.
Niina Helistö is with the VTT Technical Research Centre, Espoo, Finland.

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