skip to main content
OSTI.GOV title logo U.S. Department of Energy
Office of Scientific and Technical Information

Title: Microgrid to enable optimal distributed energy retail and end-user demand response

Journal Article · · Applied Energy
 [1];  [2];  [3];  [4]
  1. Univ. of California, Berkeley, CA (United States). Dept. of Electrical Engineering and Computer Sciences; Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States). Energy Technologies Area
  2. Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States). Energy Technologies Area
  3. McGill Univ., Montreal, QC (Canada). Trottier Inst. for Sustainability in Engineering and Design
  4. niv. of California, Berkeley, CA (United States). Dept. of Electrical Engineering and Computer Sciences
+ Show Author Affiliations

In the face of unprecedented challenges in environmental sustainability and grid resilience, there is an increasingly held consensus regarding the adoption of distributed and renewable energy resources such as microgrids (MGs), and the utilization of flexible electric loads by demand response (DR) to potentially drive a necessary paradigm shift in energy production and consumption patterns. However, the potential value of distributed generation and demand flexibility has not yet been fully realized in the operation of MGs. This study investigates the pricing and operation strategy with DR for a MG retailer in an integrated energy system (IES). Based on co-optimizing retail rates and MG dispatch formulated as a mixed integer quadratic programming (MIQP) problem, our model devises a dynamic pricing scheme that reflects the cost of generation and promotes DR, in tandem with an optimal dispatch plan that exploits spark spread and facilitates the integration of renewables, resulting in improved retailer profits and system stability. Main issues like integrated energy coupling and customer bill reduction are addressed during pricing to ensure rates competitiveness and customer protection. By evaluating on real datasets, the system is demonstrated to optimally coordinate storage, renewables, and combined heat and power (CHP), reduce carbon dioxide emission while maintaining profits, and effectively alleviate the PV curtailment problem. Finally, the model can be used by retailers and MG operators to optimize their operations, as well as regulators to design new utility rates in support of the ongoing transformation of energy systems.

Research Organization:
Lawrence Berkeley National Laboratory (LBNL), Berkeley, CA (United States)
Sponsoring Organization:
SC-23.1 USDOE Office of Science (SC), Biological and Environmental Research (BER) (SC-23). Climate and Environmental Sciences Division
Grant/Contract Number:
AC02-05CH11231
OSTI ID:
1440957
Journal Information:
Applied Energy, Vol. 210, Issue C; ISSN 0306-2619
Publisher:
ElsevierCopyright Statement
Country of Publication:
United States
Language:
English
Citation Metrics:
Cited by: 128 works
Citation information provided by
Web of Science

References (38)

The irreversible momentum of clean energy journal January 2017
Integrated Energy Systems journal April 2016
Grid-price-dependent energy management in microgrids using a modified simulated annealing triple-optimizer journal October 2014
Demand Response Program in Smart Grid Using Supply Function Bidding Mechanism journal May 2016
Optimal use of thermal energy storage resources in commercial buildings through price-based demand response considering distribution network operation journal May 2017
A Robust Indoor Positioning System Based on the Procrustes Analysis and Weighted Extreme Learning Machine journal February 2016
Distributed energy systems integration and demand optimization for autonomous operations and electric grid transactions journal April 2016
Operation of a Multiagent System for Microgrid Control journal August 2005
Optimal Technology Selection and Operation of Commercial-Building Microgrids journal August 2008
Economic analysis and optimal energy management models for microgrid systems: A case study in Taiwan journal March 2013
MOD-DR: Microgrid optimal dispatch with demand response journal February 2017
Comparison of linear, mixed integer and non-linear programming methods in energy system dispatch modelling journal September 2014
Modelling high level system design and unit commitment for a microgrid journal July 2009
Multi-objective optimal planning of the stand-alone microgrid system based on different benefit subjects journal December 2016
An efficient scenario-based stochastic programming framework for multi-objective optimal micro-grid operation journal November 2012
Considering uncertainty in the optimal energy management of renewable micro-grids including storage devices journal November 2013
Risk-Constrained Profit Maximization for Microgrid Aggregators With Demand Response journal January 2015
Optimal Generation Mix With Short-Term Demand Response and Wind Penetration journal May 2012
Optimal selling price and energy procurement strategies for a retailer in an electricity market journal January 2009
Valuation under uncertain energy prices and load demands of micro-CHP plants supplemented by optimally switched thermal energy storage journal September 2016
Effect of the accuracy of price forecasting on profit in a Price Based Unit Commitment journal October 2010
A Novel Cloud-Based Platform for Implementation of Oblivious Power Routing for Clusters of Microgrids journal January 2017
The role of regulatory reforms, market changes, and technology development to make demand response a viable resource in meeting energy challenges journal October 2014
Demand response in electrical energy supply: An optimal real time pricing approach journal August 2011
Integrated modeling of active demand response with electric heating systems coupled to thermal energy storage systems journal August 2015
Optimal Residential Load Control With Price Prediction in Real-Time Electricity Pricing Environments journal September 2010
Optimal real time pricing in an agent-based retail market using a comprehensive demand response model journal September 2011
Flexible demand response programs modeling in competitive electricity markets journal September 2011
Short- and long-run time-of-use price elasticities in Swiss residential electricity demand journal October 2011
Response of residential electricity demand to price: The effect of measurement error journal September 2011
A day-ahead electricity pricing model based on smart metering and demand-side management journal October 2012
Multi-operation management of a typical micro-grids using Particle Swarm Optimization: A comparative study journal February 2012
Net metering and market feedback loops: Exploring the impact of retail rate design on distributed PV deployment journal January 2016
Review of solar irradiance forecasting methods and a proposition for small-scale insular grids journal November 2013
Electricity price forecasting: A review of the state-of-the-art with a look into the future journal October 2014
Common failures of demand response journal February 2011
Users Manual for TMY3 Data Sets (Revised) report May 2008
Comprehensive review of renewable energy curtailment and avoidance: A specific example in China journal January 2015

Cited By (5)

Fixed Frequency Sliding Mode Control of Power Converters for Improved Dynamic Response in DC Micro-Grids journal October 2018
The Impact of Demand Response Programs on Reducing the Emissions and Cost of A Neighborhood Home Microgrid journal May 2019
Microgrids Real-Time Pricing Based on Clustering Techniques journal May 2018
Overview of AC Microgrid Controls with Inverter-Interfaced Generations journal August 2017
A review on energy efficiency and demand response with focus on small and medium data centers journal November 2018

Figures / Tables (25)

Figure 1(p. 9)figure Figure 1
Figure 2(p. 11)figure Figure 2
Figure 3(p. 13)figure Figure 3
Figure 4(p. 16)figure Figure 4
Figure 5(p. 18)figure Figure 5
Figure 6(p. 18)figure Figure 6
Figure 7(p. 18)figure Figure 7
Table 1(p. 19)table Table 1
Figure 8(p. 20)figure Figure 8
Table 2(p. 20)table Table 2
Table 3(p. 20)table Table 3
Figure 9(p. 21)figure Figure 9
Table 4(p. 21)table Table 4
Figure 10(p. 22)figure Figure 10
Figure 11(p. 22)figure Figure 11
Figure 12(p. 23)figure Figure 12
Table 5(p. 23)table Table 5
Figure 13(p. 24)figure Figure 13
Figure 14(p. 24)figure Figure 14
Figure 15(p. 25)figure Figure 15
Table 6(p. 25)table Table 6
Figure 16(p. 26)figure Figure 16
Figure 17(p. 27)figure Figure 17
Table 7(p. 27)table Table 7
Figure 18(p. 28)figure Figure 18

Similar Records

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION
Microgrid
Demand response
Energy pricing
Unit commitment
Distributed energy resources
Rate design