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Operating-Envelopes-Aware Decentralized Welfare Maximization for Energy Communities

Conference ·
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We propose an operating-envelope-aware, prosumer-centric, and efficient energy community that aggregates individual and shared community distributed energy resources and transacts with a regulated distribution system operator (DSO) under a generalized net energy metering tariff design. To ensure safe network operation, the DSO imposes dynamic export and import limits, known as dynamic operating envelopes, on end-users' revenue meters. Given the operating envelopes, we propose an incentive-aligned community pricing mechanism under which the decentralized optimization of community members' benefit implies the optimization of overall community welfare. The proposed pricing mechanism satisfies the cost-causation principle and ensures the stability of the energy community in a coalition game setting. Numerical examples provide insights into the characteristics of the proposed pricing mechanism and quantitative measures of its performance.

Research Organization:
National Renewable Energy Laboratory (NREL), Golden, CO (United States)
Sponsoring Organization:
USDOE Office of Energy Efficiency and Renewable Energy (EERE), Energy Efficiency Office. Building Technologies Office
DOE Contract Number:
AC36-08GO28308
OSTI ID:
2281371
Report Number(s):
NREL/CP-5D00-88523; MainId:89302; UUID:bc0b5d5c-423e-46d6-9cbd-df7e7c81c27f; MainAdminID:71527
Resource Relation:
Conference: Presented at the 2023 59th Annual Allerton Conference on Communication, Control, and Computing (Allerton), 26-29 September 2023, Monticello, Illinois; Related Information: 87669
Country of Publication:
United States
Language:
English

References (16)

Using OPF-Based Operating Envelopes to Facilitate Residential DER Services journal November 2022
Fair operating envelopes under uncertainty using chance constrained optimal power flow journal December 2022
Dynamic PQ Operating Envelopes for prosumers in distribution networks journal November 2022
Access Economy for Storage in Energy Communities journal May 2021
Optimal Sharing and Fair Cost Allocation of Community Energy Storage journal September 2021
Dynamic Operating Envelope-enabled P2P Trading to Maximise Financial Returns of Prosumers journal January 2023
On Net Energy Metering X: Optimal Prosumer Decisions, Social Welfare, and Cross-Subsidies journal March 2023
Achieving Social Optimality for Energy Communities via Dynamic NEM Pricing conference July 2023
Market Mechanisms for Local Electricity Markets: A review of models, solution concepts and algorithmic techniques journal March 2022
Evaluation of residential customer elasticity for incentive based demand response programs journal May 2018
Approaching Prosumer Social Optimum via Energy Sharing With Proof of Convergence journal May 2021
Incentivizing Prosumer Coalitions With Energy Management Using Cooperative Game Theory journal January 2019
Analysis of Solar Energy Aggregation Under Various Billing Mechanisms journal July 2019
Integrating distributed energy resources journal June 2022
Stabilizing Energy Communities Through Energy Pricing or PV Expansion journal January 2022
Grid and Market Services From the Edge: Using Operating Envelopes to Unlock Network-Aware Bottom-Up Flexibility journal July 2021

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Related Subjects

POWER TRANSMISSION AND DISTRIBUTION
distributed energy resources aggregation
energy community
mechanism design
net metering
operating envelopes
pricing mechanism
transactive energy system