Effects of Dynamic Pricing on the Design and Operation of Distributed Energy Resource Networks
- This paper presents a framework for the use of variable pricing to control electricity im-ported/exported to/from both fixed and unfixed residential distributed energy resource (DER) network designs. The framework shows that networks utilizing much of their own energy, and importing little from the national grid, are barely affected by dynamic import pricing, but are encouraged to sell more by dynamic export pricing. An increase in CO2 emissions per kWh of energy produced is observed for dynamic import and export, against a baseline configuration utilizing constant pricing. This is due to feed-in tariffs (FITs) that encourage CHP generation over lower-carbon technologies. Furthermore, batteries are shown to be expensive in systems receiving income from FITs and grid exports, but for the cases when they sell to/buy from the grid using dynamic pricing, their use in the networks becomes more economical. Keywords: distributed energy resource (DER); dynamic pricing; mixed-integer linear programming (MILP); renewable heat incentive (RHI);This paper presents a framework for the use of variable pricing to control electricity im-ported/exported to/from both fixed and unfixed residential distributed energy resource (DER) network designs. The framework shows that networks utilizing much of their own energy, and importing little from the national grid, are barely affected by dynamic import pricing, but are encouraged to sell more by dynamic export pricing. An increase in CO2 emissions per kWh of energy produced is observed for dynamic import and export, against a baseline configuration utilizing constant pricing. This is due to feed-in tariffs (FITs) that encourage CHP generation over lower-carbon technologies. Furthermore, batteries are shown to be expensive in systems receiving income from FITs and grid exports, but for the cases when they sell to/buy from the grid using dynamic pricing, their use in the networks becomes more economical. Keywords: distributed energy resource (DER); dynamic pricing; mixed-integer linear programming (MILP); renewable heat incentive (RHI); feed-in tariff (FIT); electricity storage in batteries.…
Author: | Tim Sidnell, Bogdan DorneanuORCiD, Evgenia Mechleri, Vassilios S. Vassiliadis, Harvey Arellano-GarciaORCiD |
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URL: | https://www.mdpi.com/2227-9717/9/8/1306 |
DOI: | https://doi.org/https://doi.org/10.3390/pr9081306 |
ISSN: | 2227-9717 |
Title of the source (English): | Processes |
Document Type: | Scientific journal article peer-reviewed |
Language: | English |
Year of publication: | 2021 |
Volume/Year: | 9 |
Issue number: | 8 |
Article number: | 1306 |
Faculty/Chair: | Fakultät 3 Maschinenbau, Elektro- und Energiesysteme / FG Prozess- und Anlagentechnik |