A novel dynamic pricing model for a microgrid of prosumers with photovoltaic systems

Veniamin Boiarkin, Muttukrishnan Rajarajan, Jafar Al-Zaili and Waqar Asif

Applied Energy, 2023, vol. 342, issue C, No S0306261923005123

Abstract: Due to the growing demand for electricity and the increasing number of consumers who can produce energy (prosumers) using photovoltaic systems today, energy generated by prosumers can be utilized in the microgrid instead of selling it to the main utility grid. Pricing is one of the most important mechanisms for motivating prosumers to interact with each other in the microgrid. Many works have proposed different pricing models that mostly focus on optimizing prosumers’ behavior and energy usage costs. However, most of the proposed models require constant involvement of the end-user to adjust energy consumption profiles, which is not always possible in a real-world scenario. In this paper, a novel pricing model is presented with the aim of maximizing the utilization of energy generated in the microgrid and reducing the import of energy from the utility grid, whereas ensuring more beneficial prices for energy within the microgrid compared with the utility grid. Mathematical models based on the supply and demand ratio and prosumers’ absolute deviation from the predicted energy usage profiles are developed to determine the internal equilibrium price and the amount of energy each prosumer can buy and sell by interacting with the microgrid. To cover the energy transfer losses in the microgrid, a dynamic loss allocation mechanism is proposed. The proposed pricing model is validated using real energy usage profiles from 100 prosumers. The results show that the total energy usage cost can be decreased, whereas the amount of unused energy that is shared outside the microgrid is minimized.

Keywords: Microgrid; Energy trading; Electricity market; Prosumer; Dynamic pricing; Photovoltaic system (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0306261923005123
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:appene:v:342:y:2023:i:c:s0306261923005123

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/bibliographic
http://www.elsevier. ... 405891/bibliographic

DOI: 10.1016/j.apenergy.2023.121148

Access Statistics for this article

Applied Energy is currently edited by J. Yan

More articles in Applied Energy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().