Operating-Envelopes-Aware Decentralized Welfare Maximization for Energy Communities

Ahmed S. Alahmed, Guido Cavraro, Andrey Bernstein and Lang Tong

Papers from arXiv.org

Abstract: We propose an operating-envelope-aware, prosumer-centric, and efficient energy community that aggregates individual and shared community distributed energy resources and transacts with a regulated distribution system operator (DSO) under a generalized net energy metering tariff design. To ensure safe network operation, the DSO imposes dynamic export and import limits, known as dynamic operating envelopes, on end-users' revenue meters. Given the operating envelopes, we propose an incentive-aligned community pricing mechanism under which the decentralized optimization of community members' benefit implies the optimization of overall community welfare. The proposed pricing mechanism satisfies the cost-causation principle and ensures the stability of the energy community in a coalition game setting. Numerical examples provide insights into the characteristics of the proposed pricing mechanism and quantitative measures of its performance.

Date: 2023-10
New Economics Papers: this item is included in nep-des and nep-ene
References: View references in EconPapers View complete reference list from CitEc
Citations:

Published in 59th Annual Allerton Conference on Communication, Control, and Computing (Allerton), 2024, 1-8

Downloads: (external link)
http://arxiv.org/pdf/2310.07157 Latest version (application/pdf)

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:arx:papers:2310.07157

Access Statistics for this paper

More papers in Papers from arXiv.org
Bibliographic data for series maintained by arXiv administrators ().