ABSTRACT
The recent trend towards increased utilization of green energy sources promises a future of sustainable energy. However, green sources are typically intermittent and unpredictable (e.g. wind power), which leads to increased complexity and, ultimately, decreased efficiency. For example, it is estimated that 90% of the full energy potential of an average wind farm never reaches the end consumer due to poor coordination with consumers (Piwko et al., 2005). To enable better coordination, an energy market using short-term “micro” agreements is required to allow consumers to react in real time to changes in production. This will increase efficient utilization of green sources and reduce energy costs for the consumer. The current market framework cannot adapt quickly to changes due to the constraints of static leases and fixed prices. This means that green energy supply cannot always find green energy demand and vice versa, resulting in low market efficiency. This chapter describes a dynamic market with micro agreements that enables consumers to react to changes in green production.
