A Bi-level optimization-based community energy management system for optimal energy sharing and trading among peers

Fernandez, Edstan; Hossain, M. J.; Mahmud, Khizir; Nizami, Mohammad Sohrab Hasan; Kashif, Muhammad

doi:10.1016/j.jclepro.2020.123254

Cited by 57 publications

(24 citation statements)

References 25 publications

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“…On the other hand, a move towards a more capacity-based tariff will trigger more investment into BESS, as found by Radl et al [9] for other European countries. In general, a more pricing mechanism would be beneficial for RECs, as highlighted by [26], where the higher profit is reached when real-time pricing is used.…”

Section: Discussionmentioning

confidence: 99%

Renewable energy communities: do they have a business case in Flanders?

Felice¹,

Rakocevic²,

Peters³

et al. 2022

Preprint

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Renewable energy communities (RECs) are prominent initiatives to provide end consumers an active role in the energy sector, raise awareness on the importance of renewable energy (RE) technologies and increase their share in the energy system thus reducing greenhouse gas emissions. The economic viability of RECs though, depends on multiple interdependent factors that require careful examination for each individual context. This study aims at investigating the impact of electricity tariffs, ratio of electrification of heating and transportation sectors, prices of RE technologies and storage systems, and internal electricity exchange prices on the annual cost for electricity provision of a REC. A mixed-integer linear model is developed to minimize energy provision costs for a representative REC in Flanders, Belgium. The results indicate that RECs have the potential to reduce these costs by 10 to 26% compared to business-as-usual. This cost reduction depends on the type of electricity tariffs and the level of uptake of flexible assets such as heat pumps and electric vehicles. The shift towards a higher power component in the electricity tariff makes electricity storage systems more attractive, which leads to higher electricity self-consumption. The introduction of flexible assets adds the possibility to shift demand when tariffs are lower and makes larger sizes of photovoltaic systems economically viable due to the increase in the total electricity demand. However, RECs cost reduction compared to individual smart-homes amounts to only 4% -6% in the best cases. Uncertainties stemming from the regulation and the costs of setting up a REC may reduce the estimated benefits.

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Section: Discussionmentioning

confidence: 99%

Renewable energy communities: do they have a business case in Flanders?

Felice¹,

Rakocevic²,

Peters³

et al. 2022

Preprint

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“…Fernandez et al [29] propose a bi-level optimisation-based community energy management system for the purpose of optimal energy sharing and trading among peers. Fina et al [30] use an optimisation model to determine the profitability of PV sharing in energy communities in different settlement patterns from a system perspective.…”

Section: State-of-the-artmentioning

confidence: 99%

A framework to estimate the large-scale impacts of energy community roll-out

Fina

Monsberger

Auer

2022

Heliyon

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“…Multiple studies have proposed different strategies for both bidding processes and the actual price setting, all including different aspects to be considered in a fair market price. In general, one can categorize the different schemes proposed in the literature into auction-based [4], [5], [6], [7], optimizationbased [8], [9], [10], [11], [12], game theory-based [13], [14] and cost-sharing [15], [16], [17] methods.…”

Section: Introductionmentioning

confidence: 99%

“…The same issue occurs in many game-theoretic approaches, where the market participants must take an active role in the price-setting games. A common approach in modeling the LEM interactions are Stackelberg games, where the prosumers act as leaders and the consumers act as followers, as done in [13] and [14].…”

Section: Introductionmentioning

confidence: 99%

LCOE-based Pricing for DLT-enabled Local Energy Trading Platforms

Dynge¹,

Halden²,

Klæboe³

et al. 2022

Preprint

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Support schemes like the Feed-in-Tariff have for many years been an important driver for the deployment of distributed energy resources, and the transition from consumerism to prosumerism. This democratization and decarbonization of the energy system has led to both challenges and opportunities for the system operators, paving the way for emerging concepts like local energy markets. The Feed-in-Tariff approach has often been assumed as the lower economic bound for a prosumer's willingness to participate in such markets but is now being phased out in several countries. In this paper, a new pricing mechanism based on the Levelized Cost of Electricity is proposed, with the intention of securing profitability for the prosumers, as well as creating a transparent and fair price for all market participants. The mechanism is designed to function on a Distributed Ledger Technology-based platform and is further set up from a holistic perspective, defining the market framework as interactions in a Cyber-Physical-Social-System. Schemes based on both fixed and variable contracts with the wholesale supplier are analyzed and compared with the conventional Feed-in-Tariff, showing benefits for both prosumers and consumers.

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A Bi-level optimization-based community energy management system for optimal energy sharing and trading among peers

Cited by 57 publications

References 25 publications

Renewable energy communities: do they have a business case in Flanders?

Renewable energy communities: do they have a business case in Flanders?

A framework to estimate the large-scale impacts of energy community roll-out

LCOE-based Pricing for DLT-enabled Local Energy Trading Platforms

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