Is Energy Storage an Economic Opportunity for the Eco-Neighborhood?

Hélène Le Cadre () and David Mercier ()
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Hélène Le Cadre: CMA - Centre de Mathématiques Appliquées - Mines Paris - PSL (École nationale supérieure des mines de Paris) - PSL - Université Paris Sciences et Lettres
David Mercier: LIST (CEA) - Laboratoire d'Intégration des Systèmes et des Technologies - DRT (CEA) - Direction de Recherche Technologique (CEA) - CEA - Commissariat à l'énergie atomique et aux énergies alternatives

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Abstract: In this article, we consider houses belonging to an eco-neighborhood in which inhabitants have the capacity to optimize dynamically the energy demand and the energy storage level so as to maximize their utility. The inhabitants' preferences are characterized by their sensitivity toward comfort versus price, the optimal expected temperature in the house, thermal loss and heating efficiency of their house. At his level, the eco-neighborhood manager shares the resource produced by the eco-neighborhood according to two schemes: an equal allocation between the houses and a priority based one. The problem is modeled as a stochastic game and solved using stochastic dynamic programming. We simulate the energy consumption of the eco-neighborhood under various pricing mechanisms: flat rate, peak and off-peak hour, blue/white/red day, peak day clearing and a dynamic update of the price based on the consumption of the eco-neighborhood. We observe that economic incentives for houses to store energy depend deeply on the implemented pricing mechanism and on the homogeneity in the houses' characteristics. Furthermore, when prices are based on the consumption of the eco-neighborhood, storage appears as a compensation for the errors made by the service provider in the prediction of the consumption of the eco-neighborhood.

Keywords: Eco-Neighborhood; Planning; Stochastic game theory; Energy storage; Pricing (search for similar items in EconPapers)
Date: 2013-05-20
New Economics Papers: this item is included in nep-ene, nep-env and nep-reg
Note: View the original document on HAL open archive server: https://hal.science/hal-00758916v3
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Published in Netnomics: Economic Research and Electronic, 2013, 13 (3), pp.191-216. ⟨10.1007/s11066-013-9075-7⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-00758916

DOI: 10.1007/s11066-013-9075-7

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