Solving the duck curve in a smart grid environment using a non-cooperative game theory and dynamic pricing profiles
- Univ. of Utah, Salt Lake City, UT (United States); OSTI
- Univ. of Utah, Salt Lake City, UT (United States)
With the intermittency that comes with electricity generation from renewables, utilizing dynamic pricing will encourage the demand-side to respond in a smart way that would minimize the electricity costs and flatten the net electricity demand curve. Determining the optimal dynamic pricing profile that would leverage distributed storage to flatten the curve is a novel idea that needs to be studied. Moreover, the economic feasibility of utilizing distributed electrical energy storage is still not given in the literature. Therefore, in this paper, a novel way of solving a citywide dynamic model using a bilevel programming algorithm is introduced. The problem is developed as a novel non-cooperative Stackelberg game that utilizes air-conditioning systems and electrical storage through the end-users to determine the optimal dynamic pricing profile. The results show that the combined effect of utilizing demand-side air-conditioning systems and distributed storage together can flatten the curve while employing the optimal dynamic pricing profile. An economic study is performed to determine the economic feasibility of 20 different cases with different battery designs and the level of solar penetration. Three metrics were used to evaluate the economic performance of each case: the levelized cost of storage, the levelized cost of energy, and the simple payback period. Most cases had levelized cost of storage values lower than 0.457 $/kWh, which is the lower bound available in the literature. Seven out of 16 cases have a simple payback period shorter than the lifetime of the system (25 years). The case with a 100 MW PV power plant and a battery storage of size 597 MWh, was found to be the most promising case with a simple payback period of 12.71 years for the photovoltaic plant and 19.86 years for the demand-side investments.
- Research Organization:
- Univ. of Utah, Salt Lake City, UT (United States)
- Sponsoring Organization:
- USDOE Office of Energy Efficiency and Renewable Energy (EERE), Energy Efficiency Office. Advanced Manufacturing Office
- Grant/Contract Number:
- EE0007712
- OSTI ID:
- 1799334
- Alternate ID(s):
- OSTI ID: 1634873
- Journal Information:
- Energy Conversion and Management, Journal Name: Energy Conversion and Management Vol. 220; ISSN 0196-8904
- Publisher:
- ElsevierCopyright Statement
- Country of Publication:
- United States
- Language:
- English
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