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

Title: Distributed Generation Dispatch Optimization under VariousElectricity Tariffs

Abstract

The on-site generation of electricity can offer buildingowners and occupiers financial benefits as well as social benefits suchas reduced grid congestion, improved energy efficiency, and reducedgreenhouse gas emissions. Combined heat and power (CHP), or cogeneration,systems make use of the waste heat from the generator for site heatingneeds. Real-time optimal dispatch of CHP systems is difficult todetermine because of complicated electricity tariffs and uncertainty inCHP equipment availability, energy prices, and system loads. Typically,CHP systems use simple heuristic control strategies. This paper describesa method of determining optimal control in real-time and applies it to alight industrial site in San Diego, California, to examine: 1) the addedbenefit of optimal over heuristic controls, 2) the price elasticity ofthe system, and 3) the site-attributable greenhouse gas emissions, allunder three different tariff structures. Results suggest that heuristiccontrols are adequate under the current tariff structure and relativelyhigh electricity prices, capturing 97 percent of the value of thedistributed generation system. Even more value could be captured bysimply not running the CHP system during times of unusually high naturalgas prices. Under hypothetical real-time pricing of electricity,heuristic controls would capture only 70 percent of the value ofdistributed generation.

Authors:
;
Publication Date:
Research Org.:
Ernest Orlando Lawrence Berkeley NationalLaboratory, Berkeley, CA (US)
Sponsoring Org.:
USDOE
OSTI Identifier:
926608
Report Number(s):
LBNL-62869
R&D Project: E584EE; BnR: YN1901000
DOE Contract Number:
DE-AC02-05CH11231
Resource Type:
Journal Article
Resource Relation:
Journal Name: Internation Journal of Electronic BusinessManagement; Journal Volume: 5; Journal Issue: 3; Related Information: Journal Publication Date: 2007
Country of Publication:
United States
Language:
English
Subject:
32; 29; combined heat and power tariffs dispatch optimizationuncertainty

Citation Formats

Firestone, Ryan, and Marnay, Chris. Distributed Generation Dispatch Optimization under VariousElectricity Tariffs. United States: N. p., 2007. Web.
Firestone, Ryan, & Marnay, Chris. Distributed Generation Dispatch Optimization under VariousElectricity Tariffs. United States.
Firestone, Ryan, and Marnay, Chris. Tue . "Distributed Generation Dispatch Optimization under VariousElectricity Tariffs". United States. doi:. https://www.osti.gov/servlets/purl/926608.
@article{osti_926608,
title = {Distributed Generation Dispatch Optimization under VariousElectricity Tariffs},
author = {Firestone, Ryan and Marnay, Chris},
abstractNote = {The on-site generation of electricity can offer buildingowners and occupiers financial benefits as well as social benefits suchas reduced grid congestion, improved energy efficiency, and reducedgreenhouse gas emissions. Combined heat and power (CHP), or cogeneration,systems make use of the waste heat from the generator for site heatingneeds. Real-time optimal dispatch of CHP systems is difficult todetermine because of complicated electricity tariffs and uncertainty inCHP equipment availability, energy prices, and system loads. Typically,CHP systems use simple heuristic control strategies. This paper describesa method of determining optimal control in real-time and applies it to alight industrial site in San Diego, California, to examine: 1) the addedbenefit of optimal over heuristic controls, 2) the price elasticity ofthe system, and 3) the site-attributable greenhouse gas emissions, allunder three different tariff structures. Results suggest that heuristiccontrols are adequate under the current tariff structure and relativelyhigh electricity prices, capturing 97 percent of the value of thedistributed generation system. Even more value could be captured bysimply not running the CHP system during times of unusually high naturalgas prices. Under hypothetical real-time pricing of electricity,heuristic controls would capture only 70 percent of the value ofdistributed generation.},
doi = {},
journal = {Internation Journal of Electronic BusinessManagement},
number = 3,
volume = 5,
place = {United States},
year = {Tue May 01 00:00:00 EDT 2007},
month = {Tue May 01 00:00:00 EDT 2007}
}