KAPSARC is engaged in exploratory modeling and analysis of electric power distribution systems. Existing power system arrangements need to be revisited in light of advances in distributed energy resources (DER) and smart grid technologies. Understanding the institutional arrangements, as well as behavioral responses and operational profiles of the technologies is critical for integrating DER into the industry’s existing framework. New institutional designs, whether they are business or regulatory, may be needed to ensure the provision of electric power remains clean, affordable and reliable.

The project is designed to follow complementary research lines. The first strand is to explore new electricity business models, market structures and policy regimes that would enable to take full advantage of new technologies to pursue energy policy objectives. The second strand is to develop analytical tools to test hypotheses and simulate new technologies, market operations, and designs of institutions. An agent-based model (ABM) platform is being developed to act as a laboratory where different market arrangements can be tested in order to predict flaws in design and prevent unwanted side effects.