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| Srl | Item |
| 1 |
ID:
177437
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| Summary/Abstract |
Distributed energy resources (DERs) may enable prosumers to deliver demand response under dynamic energy pricing schemes. Facing wholesale market prices, the DER scheduling of a profit-maximising prosumer minimises the total system energy cost as well. However, regulated electricity bill components, i.a., distribution tariffs for recovering grid costs, may distort these price signals. To study the impact of distribution tariff structures on DER scheduling, we develop a short-term linear optimisation model that determines the cost-optimal DER schedule based on wholesale electricity prices and a distribution tariff. We compare five distribution tariff structures for four combinations of PV, batteries, and heat pumps, and define two metrics to characterise the results: (i) the novel ‘relative flexibility value’, which quantifies energy cost inefficiencies, and (ii) ‘rate of self-consumption’. In a case study, we show how prosumers make trade-offs between energy and distribution costs, depending on the distribution tariff structure. We describe the mechanisms through which different distribution tariff structures alter DER operations, and quantify the tariffs' impact on the system energy cost. Generally, we find that tariff types which stimulate self-consumption increase the system energy cost and vice versa.
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| 2 |
ID:
110752
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| Publication |
2011.
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| Summary/Abstract |
The implementation of an energy service company (ESCO) project in developing countries may result not only in reduced energy cost but also in considerable environmental benefits, including the reduction of CO2 emissions, which can be assessed in an economic manner under the Clean Development Mechanism (CDM) scheme. In this way, the economic and environmental benefits of energy conservation activities can be enjoyed by both the investor and the end-user, which can reduce the investment risk and realize a rational profit allocation. This study presents a numerical analysis of the introduction of distributed energy resources (DER) into a Chinese urban area. An optimization model is developed to determine the energy system combination under the constraints on the electrical and thermal balances and equipment availability. According to the simulation results, the introduction of DER systems possesses considerable potential to reduce CO2 emissions, especially when considering that the economic profit of the CO2 credit will increase the incentive to adopt DER systems to an even greater extent. Furthermore, by sharing the energy cost savings with the investors under an ESCO framework, the investment risk can be further reduced, and the conditions required for the project to qualify for CDM can be relaxed.
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