{"title":"Impact of Network Tariffs and Electricity Prices on the Investment Decisions for PV-Battery Systems","authors":"Jolien Despeghel;Johan Driesen","doi":"10.1109/TEMPR.2024.3367546","DOIUrl":"https://doi.org/10.1109/TEMPR.2024.3367546","url":null,"abstract":"This paper aims to assess the impact of a volumetric and a capacity-based network tariff, as well as the impact of a substantial electricity price increase on the decision of a household to invest in a PV-battery system. Therefore, a convex optimization model is implemented which returns the optimal sizing and operation from the households' perspective by minimizing the equivalent annual cost. Based on the analysis of the optimal PV-battery system for 200 households under four scenarios, this study found that the investment driver of a household changes from minimizing grid withdrawal to maximizing grid feed-in when the feed-in remuneration increases, as well as the maximization of the installed PV capacity. In addition, the price increase leads to a net profit as opposed to a reduced cost. The shift from a volumetric to a capacity-based tariff leads to a smaller gap between the consumers' and prosumers' contribution to the distribution grid costs, increasing fairness. However, the contributions could be insufficient to ensure adequate cost recovery, requiring possible adjustment of the tariff height by the DSO. Finally, policy makers need to be aware that a capacity-based tariff leads to a lower reduction of carbon emissions as opposed to a volumetric tariff.","PeriodicalId":100639,"journal":{"name":"IEEE Transactions on Energy Markets, Policy and Regulation","volume":"2 2","pages":"175-185"},"PeriodicalIF":0.0,"publicationDate":"2024-02-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141319612","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Electricity Retail Plan Recommendation Method Based on Multigranular Hesitant Fuzzy Sets and an Improved Non-Negative Latent Factor Model","authors":"Yuanqian Ma;Ruinan Zheng;Yuhao Lu;Zhi Zhang;Yunchu Wang;Zhenzhi Lin;Li Yang;Hongle Liang;Peter Xiaoping Liu","doi":"10.1109/TEMPR.2024.3366528","DOIUrl":"https://doi.org/10.1109/TEMPR.2024.3366528","url":null,"abstract":"Electricity retail companies can derive significant benefits from precise recommendations of electricity retail plans (ERPs). However, existing recommendation methods often assume that customers are proficient in evaluating all the attributes of ERPs, and overlook the fact that the accuracy of predicting missing information is closely tied to the objective function of customers’ satisfaction, which degrades the recommendation results significantly. In light of the challenge, an ERP recommendation method based on multigranular hesitant fuzzy sets (MHFSs) and an improved non-negative latent factor model (INLFM) is proposed. First, a quantitative model for customer satisfaction based on MHFSs is established, which provides a foundation for estimating target customers’ satisfaction. Secondly, an INLFM-based prediction model is developed to fill in the missing values of customers’ satisfaction. Additionally, an estimation model for target customer satisfaction based on a customer portrait label system and a dual-layer affinity propagation (DLAP) clustering algorithm is proposed, and a top-H ERPs recommendation method is developed, facilitating precise ERP recommendation tailored to the needs of electricity retail company. Finally, case studies on customers in a high-tech development zone in eastern China show that the proposed method can characterize customers’ satisfaction more accurately and equitably, meanwhile reduce the recommendation deviation effectively.","PeriodicalId":100639,"journal":{"name":"IEEE Transactions on Energy Markets, Policy and Regulation","volume":"2 2","pages":"146-161"},"PeriodicalIF":0.0,"publicationDate":"2024-02-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141319683","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Elina Spyrou;Ben Hobbs;Deb Chattopadhyay;Neha Mukhi
{"title":"How to Assess Uncertainty-Aware Frameworks for Power System Planning?","authors":"Elina Spyrou;Ben Hobbs;Deb Chattopadhyay;Neha Mukhi","doi":"10.1109/TEMPR.2024.3365977","DOIUrl":"https://doi.org/10.1109/TEMPR.2024.3365977","url":null,"abstract":"Computational advances along with the profound impact of uncertainty on power system investments have motivated the creation of power system planning frameworks that handle long-run uncertainty, large number of alternative plans, and multiple objectives. Planning agencies seek guidance to assess such frameworks. This article addresses this need in two ways. First, we augment previously proposed criteria for assessing planning frameworks by including new criteria such as stakeholder acceptance to make the assessments more comprehensive, while enhancing the practical applicability of assessment criteria by offering criterion-specific themes and questions. Second, using the proposed criteria, we compare two widely used but fundamentally distinct frameworks: an ‘agree-on-plans’ framework, Robust Decision Making (RDM), and an ‘agree-on-assumptions’ framework, centered around Stochastic Programming (SP). By comparing for the first time head-to-head the two distinct frameworks for an electricity supply planning problem under uncertainties in Bangladesh, we conclude that RDM relies on a large number of simulations to provide ample information to decision makers and stakeholders, and to facilitate updating of subjective inputs. In contrast, SP is a highly dimensional optimization problem that identifies plans with relatively good probability-weighted performance in a single step, but even with computational advances remains subject to the curse of dimensionality.","PeriodicalId":100639,"journal":{"name":"IEEE Transactions on Energy Markets, Policy and Regulation","volume":"2 4","pages":"436-448"},"PeriodicalIF":0.0,"publicationDate":"2024-02-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142810690","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"A Strengthened Primal-Dual Decomposition Algorithm for Solving Electricity Market Pricing With Revenue-Adequacy and FFR Constraints","authors":"Hamed Goudarzi;Mohammad Reza Hesamzadeh;Derek Bunn;Mahmud Fotuhi-Firuzabad;Mohammad Shahidehpour","doi":"10.1109/TEMPR.2024.3363371","DOIUrl":"https://doi.org/10.1109/TEMPR.2024.3363371","url":null,"abstract":"This paper develops a new decomposition algorithm for solving Electricity Market Pricing (EMP) problem, taking into account both revenue-adequacy and Fast Frequency Reserve (FFR) constraints. Due to revenue-adequacy constraint, a bilevel model of the EMP problem is introduced (BL-EMP). The upper level of the BL-EMP model represents the non-convex unit commitment (UC) decisions as well as the revenue-adequacy constraints of the market participants (generators, loads, and battery-storage owner). The lower level is a convex economic dispatch model with FFR constraint. To tackle the computational complexity of the considered BL-EMP model, this paper develops, tests, and proposes a Strengthened Primal-Dual Decomposition (SPDD) algorithm, which takes benefits from both Benders-like and Lagrange Dual-like algorithms. The new SPDD algorithm has a series of interesting computational properties, which are theoretically discussed in the paper. The SPDD algorithm has better computational performance than standard Benders decomposition algorithm and it also does not need tuning of the Big-M (or disjunctive) parameters for solving the proposed BL-EMP problem. Results from the modified IEEE 24-bus, the IEEE 118-bus, and the IEEE 300-bus system show the superiority of proposed SPDD algorithm over the classic Benders algorithm.","PeriodicalId":100639,"journal":{"name":"IEEE Transactions on Energy Markets, Policy and Regulation","volume":"2 3","pages":"379-391"},"PeriodicalIF":0.0,"publicationDate":"2024-02-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142172632","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Optimal Electricity Procurement Enabled by Privacy-Preserving Samples","authors":"Wenqian Jiang;Chenye Wu","doi":"10.1109/TEMPR.2024.3361873","DOIUrl":"https://doi.org/10.1109/TEMPR.2024.3361873","url":null,"abstract":"Prior sample-based mechanisms rely predominately on empirical validations for their efficiency, with little attention to how finite samples theoretically impact decision-making. Additionally, differentially private noise injection before data publication further complicates the understanding of the samples' impact. To this end, taking electricity procurement as an example, we seek to theoretically quantify the impact of authentic and privacy-preserving samples on decision-making. Specifically, based on the customized sample average approximation procurement solution, we derive the minimum number of samples to guarantee near-optimal decisions. Numerical studies validate the theoretical bounds by comparing them to empirical observations. Our analysis offers practical insights into effective demand forecast mechanism design and efficient sample collection.","PeriodicalId":100639,"journal":{"name":"IEEE Transactions on Energy Markets, Policy and Regulation","volume":"2 3","pages":"339-349"},"PeriodicalIF":0.0,"publicationDate":"2024-02-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142171567","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Carmen Bas Domenech;James Naughton;Shariq Riaz;Pierluigi Mancarella
{"title":"Towards Distributed Energy Markets: Accurate and Intuitive DLMP Decomposition","authors":"Carmen Bas Domenech;James Naughton;Shariq Riaz;Pierluigi Mancarella","doi":"10.1109/TEMPR.2024.3360996","DOIUrl":"https://doi.org/10.1109/TEMPR.2024.3360996","url":null,"abstract":"Distributed energy markets (DEM) have emerged to efficiently integrate distributed energy resources (DER) in power systems, applying the principles from wholesale energy markets and generating distribution locational marginal prices (DLMPs). In this paper we introduce a novel DLMP decomposition that provides fundamental insights into the relationship between DLMPs and wholesale market prices, active and reactive power injections, thermal and voltage constraints, and losses. The DLMP decomposition is based on an exact second order cone optimal power flow (SOC-OPF) using an iterative algorithm to accurately and efficiently compute DLMP, including instances with negative prices, when generally SOC-OPF is not exact. The salient features of the proposed DLMP decomposition are demonstrated in different DEM applications using a 2-bus canonical example and a 34-bus medium voltage test network. By revealing the underlying drivers of electricity prices at distribution level, the proposed DLMP decomposition initiates crucial discussions on DEM, setting the foundations for further DEM developments.","PeriodicalId":100639,"journal":{"name":"IEEE Transactions on Energy Markets, Policy and Regulation","volume":"2 2","pages":"240-253"},"PeriodicalIF":0.0,"publicationDate":"2024-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141319682","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Jacques Cartuyvels;Gilles Bertrand;Anthony Papavasiliou
{"title":"Market Equilibria in Cross-Border Balancing Platforms","authors":"Jacques Cartuyvels;Gilles Bertrand;Anthony Papavasiliou","doi":"10.1109/TEMPR.2024.3360475","DOIUrl":"https://doi.org/10.1109/TEMPR.2024.3360475","url":null,"abstract":"The next phase of electricity market integration in Europe will see the introduction of pan-European balancing platforms, MARI and PICASSO, for the trading of manual and automatic frequency restoration reserve. This article provides an analytical framework for the study of pricing asymmetries between European member states in this context. The pricing asymmetries are due to balancing incentive components and consist of the unilateral introduction by a member state of either (i) an adder on the imbalance price and balancing price, (ii) an adder on the imbalance price solely, or (iii) the introduction of a real-time price for the trading of real-time balancing capacity. Our analytical framework allows us to characterize the optimal bidding strategy of flexible assets under the different designs and to derive the resulting equilibria. Our analysis demonstrates that adders without the trading of balancing capacity create inefficiencies by distorting the merit order and tend to be detrimental to the member state that introduces it.","PeriodicalId":100639,"journal":{"name":"IEEE Transactions on Energy Markets, Policy and Regulation","volume":"2 2","pages":"162-174"},"PeriodicalIF":0.0,"publicationDate":"2024-01-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://ieeexplore.ieee.org/stamp/stamp.jsp?tp=&arnumber=10417720","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141319680","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Carlos Matamala;Luis Badesa;Rodrigo Moreno;Goran Strbac
{"title":"Cost Allocation for Inertia and Frequency Response Ancillary Services","authors":"Carlos Matamala;Luis Badesa;Rodrigo Moreno;Goran Strbac","doi":"10.1109/TEMPR.2024.3355291","DOIUrl":"https://doi.org/10.1109/TEMPR.2024.3355291","url":null,"abstract":"The reduction in system inertia is creating an important market for frequency-containment Ancillary Services (AS) such as enhanced frequency response (e.g., provided by battery storage), traditional primary frequency response and inertia itself. This market presents an important difference with the energy market: while the need for energy production is driven by the demand from consumers, frequency-containment AS are procured because of the need to deal with the largest generation/demand loss in the system (or smaller losses that could potentially compromise frequency stability). Thus, a question that arises is: who should pay for frequency-containment AS? In this work, we propose a cost-allocation methodology based on the nucleolus concept, in order to distribute the total payments for frequency-containment AS among all generators or loads that create the need for these services. It is shown that this method complies with necessary properties for the AS market, such as avoidance of cross-subsidies and maintaining players in this cooperative game. Finally, we demonstrate its practical applicability through a case study for the Great Britain power system, while comparing its performance with two alternative mechanisms, namely proportional and Shapley value cost allocation.","PeriodicalId":100639,"journal":{"name":"IEEE Transactions on Energy Markets, Policy and Regulation","volume":"2 3","pages":"328-338"},"PeriodicalIF":0.0,"publicationDate":"2024-01-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142171568","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Dynamic Net Metering for Energy Communities","authors":"Ahmed S. Alahmed;Lang Tong","doi":"10.1109/TEMPR.2024.3354162","DOIUrl":"https://doi.org/10.1109/TEMPR.2024.3354162","url":null,"abstract":"We propose a social welfare maximizing market mechanism for an energy community that aggregates individual and community-shared energy resources under a general net energy metering (NEM) policy. Referred to as Dynamic NEM (D-NEM), the proposed mechanism dynamically sets the community NEM prices based on aggregated community resources, including flexible consumption, storage, and renewable generation. D-NEM guarantees a higher benefit to each community member than possible outside the community, and no sub-communities would be better off departing from its parent community. D-NEM aligns each member's incentive with that of the community such that each member maximizing individual surplus under D-NEM results in maximum community social welfare. Empirical studies compare the proposed mechanism with existing benchmarks, demonstrating its welfare benefits, operational characteristics, and responsiveness to NEM rates.","PeriodicalId":100639,"journal":{"name":"IEEE Transactions on Energy Markets, Policy and Regulation","volume":"2 3","pages":"289-300"},"PeriodicalIF":0.0,"publicationDate":"2024-01-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142173965","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Screening Curve Method for Economic Analysis of Household Solar Energy Self-Consumption","authors":"Hikaru Hoshino;Yosuke Irie;Eiko Furutani","doi":"10.1109/TEMPR.2024.3350051","DOIUrl":"https://doi.org/10.1109/TEMPR.2024.3350051","url":null,"abstract":"The profitability of solar energy self-consumption in households, the so-called photovoltaic (PV) self-consumption, is expected to boost the deployment of PV and battery storage systems. This paper develops a novel method for economic analysis of PV self-consumption using battery storage based on an extension of the Screening Curve Method (SCM). The SCM enables quick and intuitive estimation of the least-cost generation mix for a target load curve and has been used for generation planning for bulk power systems. In this paper, we generalize the framework of existing SCM to take into account the intermittent nature of renewable energy sources and apply it to the problem of optimal sizing of PV and battery storage systems for a household. Numerical studies are provided to verify the estimation accuracy of the proposed SCM and to illustrate its effectiveness in a sensitivity analysis, owing to its ability to show intuitive plots of cost curves for researchers or policy-makers to understand the reasons behind the optimization results.","PeriodicalId":100639,"journal":{"name":"IEEE Transactions on Energy Markets, Policy and Regulation","volume":"2 3","pages":"368-378"},"PeriodicalIF":0.0,"publicationDate":"2024-01-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142173944","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}