Optimal Power Dispatch for Maximum Energy Community Welfare by Considering Closed Distribution Systems and Renewable Sources

Paulo M. De Oliveira-De Jesus and Jose M. Yusta ()
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Paulo M. De Oliveira-De Jesus: Department of Electrical and Electronic Engineering, School of Engineering, Universidad de Los Andes, Bogotá 111711, Colombia
Jose M. Yusta: Department of Electrical Engineering, University of Zaragoza, María de Luna 3, 50018 Zaragoza, Spain

Energies, 2024, vol. 17, issue 18, 1-21

Abstract: Regulatory boards are promoting closed distribution systems (CDSs), which are different from traditional public-access networks, that can be owned and managed by energy communities (ECs). The inclusion of local renewable energy potential and an adequate schedule of storage devices in a CDS allow cooperation among the EC’s members in order to reduce operational expenditure (OPEX), providing internally competitive electricity prices with respect to those provided by publicly regulated networks and electricity markets. The CDS operators can assume a new role as the centralized energy dispatchers of generation and storage assets in order to maximize the profits of the members of the EC. This paper proposes an innovative optimal active and reactive power dispatch model for maximum community welfare conditions. A key difference between this proposal and existing social-welfare-based dispatches on public-access networks is the exclusion of the profit of the external wholesale electricity market. The focus of the proposed method is to maximize the welfare of all community members. A remuneration framework based on a collective EC with a single frontier is adopted, considering agreements between members based on locational marginal pricing (CDS-LMP). Results from an illustrative case study show a reduction of 50% in the EC’s OPEX with a payback time of 6 years for investments in CDSs, renewable sources, and storage.

Keywords: closed distribution systems; energy community; social welfare; power dispatch; optimization; renewable energy; storage (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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