The Effect of Prosumer Duality on Power Market: Evidence From the Cournot Model

Distributed energy resources and market deregulation enable traditional electricity consumers to become prosumers (producers/consumers) that can use their idle production capacity or concentrate consumption assets. Emerging provide benefits the system by exchanging energy-related services. More importantly, they do so in a more competitive way than producer/consumer systems. We extend Cournot model show dual nature of lead behavior under game theoretic scenario. best response supply quantities prosumer are usually closer level compared those producer. further these findings presence transmission constraints, uncertainty, demand, costs.