Estimating the benefits of cooperation in a residential microgrid: A data-driven approach

Alexander Rieger,Robert Thummert,Gilbert Fridgen,Micha Kahlen,Wolfgang Ketter

doi:10.1016/j.apenergy.2016.07.105

Alexander Rieger, Robert Thummert + Show 3 more

Open Access

https://doi.org/10.1016/j.apenergy.2016.07.105

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Abstract

Private households are increasingly taking cooperative action to change their energy consumption patterns in pursuit of green, social, and economic objectives. Cooperative demand response (DR) programs can contribute to these common goals in several ways. To quantify their potential, we use detailed energy consumption and production data collected from 201 households in Austin (Texas) over the year 2014 as well as historic real-time prices from the Austin wholesale market. To simulate cooperative DR, we adapt a load-scheduling algorithm to support both real-time retail prices and a capacity-pricing component (two-part pricing schemes). Our results suggest that cooperative DR results in higher cost savings for households than individual DR. Whereas cooperative DR that is based on real-time pricing alone leads to an increase in peak demand, we show that adding a capacity-pricing component is able to counteract this effect. The capacity-pricing component successfully reduces the cooperative’s peak demand and also increases the cost savings potential. Effective peak shaving is furthermore only possible in a cooperative setting. We conclude that cooperative DR programs are not only beneficial to customers but also to energy providers. The use of appropriate tariffs allows consumers and suppliers to share these benefits fairly.

Highlights

There is a strong imperative for us to alter the way that we use energy [1]: High levels of carbon emission, a growing opposition to nuclear power in response to the 2011 reactor melt-down in Fukushima, and technological advances have led to a shift towards renewable energy sources (RES) in many countries
Focusing on residential demand response (DR), we model energy cooperatives which only encompass domestic consumers and domestic prosumers
The central controller (CC) does not expose individual homes to real time price signals as these tend to overburden consumers [20]

Summary

Introduction

There is a strong imperative for us to alter the way that we use energy [1]: High levels of carbon emission, a growing opposition to nuclear power in response to the 2011 reactor melt-down in Fukushima, and technological advances have led to a shift towards renewable energy sources (RES) in many countries. The intermittency of RES creates considerable stability challenges for energy providers and grid operators. Grid management presents additional challenges in that electricity networks themselves are increasingly being recognized as major sources of carbon emissions and need to be structured and operated in a more environmentally sustainable manner [2]. Microgrids serve as a platform for balancing demand and supply and they emphasize the idea of organizing and optimizing electricity networks locally [4]. Microgrids can be managed by commercial entities or even by retail consumers themselves via energy cooperatives [5].

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