Utility Pricing Research Articles

Improved TLBO algorithm for optimal energy management in a hybrid microgrid with support vector machine-based forecasting of uncertain parameters

The worldwide need for electrical energy is increasing, and integrating renewable energy sources (RES) into the power grid will enhance the efficient use of clean energy to fulfill the growing demand for energy. However, the uncertain nature of power from the RES like solar and wind, utility price, and load demand, necessitates accurate forecasting of the uncertain parameters (UP) to improve the reliability of the hybrid microgrid. In this work, optimal energy management (EM) of a hybrid AC-DC microgrid (HMG) is proposed which comprises of two phases, forecasting and scheduling. In the former phase, the uncertainties like day-ahead utility price, electrical demand, and power from the RES are forecasted using the support vector machine (SVM) algorithm and the results are compared with the artificial neural network (ANN) algorithm. In the second phase, the improved Teaching and Learning-Based Optimization (ITLBO) algorithm isused to reduce the generation costs over a 24-h period in a hybrid microgrid. The forecasted uncertain parameters are used as input in the second phase. Power trading occurs between the utility grid and the hybrid microgrid based on load demand and bidding costs, aiming to minimize generation costs. The proposed framework's viability and performance are assessed using IEEE standard test systems. The generating cost, as well as the optimal power dispatch of the HMG, is obtained using the ITLBO algorithm, and the results are compared with different meta-heuristic techniques such as the teaching and learning-based algorithm (TLBO), Ant Lion Optimization algorithm (ALO) and the artificial bee colony algorithm (ABC). The results obtained demonstrate the superiority of the SVM algorithm in forecasting and the ITLBO algorithm over other methods in minimizing operating costs.

Valorization of Prosopis Juliflora biochar for supercapacitor application: Techno-economic and lifecycle analysis

Prosopis juliflora (PJ) poses a significant concern to environmental engineers because of its adverse effects on the local communities and environment. The pyrolysis method was employed to recover value-added products from PJ biomass, producing biochar, bio-oil, and pyrogas. A 1:4 biochar-to-KOH ratio produced activated carbon (PJBAC-K4) with a specific surface area of 1140 m2/g and 80% mesopores. The electrode demonstrates a specific capacitance of 288 F/g at 1 A/g. Additionally, the results demonstrate a prolonged lifespan (at least 10,000 charge-discharge cycles), with a retention rate of 91.3% of the initial capacitance. Techno-economic analysis revealed that the net unit production cost of PJBAC-K4 is $18.41 per kg, which comes to around 0.006 cents/F, and the expected payback time is 5.16 years. Sensitivity analysis revealed that process economics is highly vulnerable to utility and raw material prices. The completed life cycle study revealed the environmental benefits of lower global warming potential compared to commercially available activated carbons.

Power allocation between radar and jammer using conflict game theory

AbstractConflict game theory is employed to analyze the countermeasure relationship between radar systems and jammers. To address this issue, a novel utility function and a Conflict Power Allocation Game (CPAG) algorithm are introduced for determining the Nash Equilibrium (NE) solution of the game. The utility function enables the calculation of optimal power response functions for both the radar system and the jammer, with the NE solution of the CPAG algorithm obtained through numerical computation. Simulation results demonstrate the convergence of the proposed CPAG algorithm to the NE solution, validating its efficacy. Finally, an analysis of the relationship between the utility function and pricing factors is conducted based on the proposed CPAG algorithm and simulation outcomes.

Evaluating the offshore wind business case and green hydrogen production: A case study of a future North Sea Offshore Grid

The European Union aims to increase its climate ambition and achieve climate neutrality by 2050. This necessitates expanding offshore wind energy and green hydrogen production, especially for hard-to-abate industrial sectors. A study examines the impact of green hydrogen on offshore wind projects, specifically focusing on a potential future North Sea offshore grid. The study utilizes data from the TYNDP 2020 Global Ambition scenario 2040, considering several European countries. It aims to assess new transmission and generation capacity utilization and understand the influencing factors. The findings show that incorporating green hydrogen production increases offshore wind utilization and capture prices. The study estimates that by 2040, the levelized cost of hydrogen could potentially decrease to €1.2-1.6/kg H2, assuming low-cost electricity supply and declining capital costs of electrolysers. These results demonstrate the potential benefits and cost reductions of integrating green hydrogen production into North Sea offshore wind projects.

Impact of Corruption on Utility Prices: A Theoretical and Empirical Analysis for the Electricity Markets

This study investigates the influence of corruption on utility prices. We develop a game-theoretical model to explore the interactions between the government, an interest group formed by firms, and consumers in determining utility prices. The model suggests that an increase in corruption correlates with a rise in utility prices, a relationship confirmed through empirical analysis of electricity sectors in 21 OECD countries from 1995 to 2015. Additionally, we explore the effects of regulatory reforms on electricity prices, revealing mixed outcomes. The findings emphasise the importance of anti-corruption efforts in shaping fair utility prices.

MACROECONOMIC STRATEGY FOR THE RESTORATION OF THE GAS DISTRIBUTION MARKET ON THE EXAMPLE OF THE MARSHALL PLAN

Ukraine suffered giant human, material, and resource losses from the war. This led to a change in the Strategy and Tactics for the future allocation of resources and strategies for the macroeconomic recovery of the energy sector. A sharp decline in Ukraine's energy intensity in all sectors of the economy resulted in a general decline in the country's gross domestic product. As a result of the military intervention, Ukraine's energy sector is characterized by high import dependence, low energy efficiency, and financial illiquidity. In addition, the subsequent market transformation has led to chaotic pricing of gas resources and utilities and low household income. The article discusses the main aspects of the famous Marshall Plan for the post-war reconstruction of the Ukrainian economic and energy systems. The study pays special attention to the macroeconomic Strategy for the energy sector's recovery. The article considers the existing developments of researchers and practitioners in analyzing the impact of the Marshall Plan on the recovery of European countries after World War II. When implementing this plan in the context of current national realities, the author outlines certain aspects that could be taken into account in the necessary implementation of a standard European policy of Ukraine's reconstruction, intensification of the business legal and competitive environment, and implementation of integrity issues about the focus and priority of individual industries and areas. It is particularly urgent to address the combination of renewable features in the context of European environmental, climate, and economic policies. Considering Ukraine's energy balance in wartime, the existing Energy Strategy should summarize the growth that will be implemented slowly. Gas resources will continue to play an essential role in domestic energy consumption. Therefore, in analyzing existing approaches, trends, and our beliefs, we modeled a possible macroeconomic Strategy for restoring Ukraine's gas distribution sector in the postwar period based on approaches specific to the Marshall Plan. The macroeconomic Strategy for restoring gas distribution companies in postwar Ukraine is a complex concept and consists of several government measures. This Strategy should consider the Marshall Plan, which has already positively affected some countries after World War II. The basis of this recovery plan is access to fuel and energy resources in a technically reliable, safe, cost-effective, and environmentally acceptable manner in the interests of consumers and society. Ukraine suffered giant human, material, and resource losses from the war. This has led to a change in the Strategy and Tactics for the future allocation of resources and macroeconomic recovery strategies for the energy sector. A sharp decline in Ukraine's energy intensity in all sectors of the economy resulted in a general decline in the country's gross domestic product. As a result of the military intervention, Ukraine's energy sector is characterized by high import dependence, low energy efficiency, and financial illiquidity. In addition, the resulting market transformation has led to chaotic pricing for gas resources and utilities.

P2P credit auction vs. net metering: Benefit analysis for prosumers under incremental block rate electricity tariff

In order to increase the economic benefits of residential photovoltaic (PV), many countries have considered diverse compensation policies for surplus energy, such as fixed feed-in tariff, time-varying feed-in tariff, and net metering, where the surplus energy is offset against consumption. More recently, there has been a growing interest in schemes that allow end-users to trade surplus energy via peer-to-peer (P2P) electricity trading, rather than relying on government incentives. This study conducts a quantitative analysis of on how the introduction of P2P trading affects the benefits of each stakeholder, offering a guide for policy adoption. Firstly, this study devises a P2P trading mechanism based on credit auctions tailored for residential, while considering the application of the increasing block rate tariff often applied to residential customers in the real world, and assesses its benefits in comparison to the current net metering scheme. Multiple case studies were undertaken, encompassing various scenarios, including the level of purchase price of utility for uncleared auction offers, the proportion of prosumers participating in the trading network, and the level of capacity of PV. This study shows that the P2P trading does not always yield positive benefits for prosumers compared to the prior policy. Nevertheless, this study identifies specific conditions under which the P2P trading can stimulate residential PV installations.

Technoeconomic Analysis of a Wind Power Generation System and Wind Resource Mapping Using GIS Tools: The Case of Twelve Locations in the Commune of Evodoula, Cameroon

This paper performs a technoeconomic analysis of the wind power potential and evaluates the cost of wind power generation in Evodoula, comparing two methods, the conventional method and the uncertainty method based on a comparative spatiotemporal approach using the geographic information system (GIS) software tool. This study is based on satellite wind data measured at 10 m above ground level (AGL) over a 40-year period (1980-2019), by the meteorological service NASA (National Aeronautics and Space Administration)/Goddard Space Flight Center (GSFC). The main objectives are to obtain an appropriate design for a proven optimal location and to assess the viability of wind power at Evodoula. For this type of study, there is little literature available. The optimization of an onshore wind farm and deployment in the wind energy development interest area (ZIDEE) is carried out to obtain a minimum and parsimonious discounted cost production unitary (CPU) of the electricity produced. The results showed that in Okok, a location with a large energy deficit, an onshore wind farm with an electricity generation capacity of 12.5 MW with 5 NORDEX N100-2.5MW wind turbines would have a total energy production (TEP) of about 64.0254825 TWh and a selling price of electricity that would be 0.0034 CAD$/kWh, which is very low compared to the utility price (about 98% cheaper). The total cost of the wind farm would be about $11 million, with a net present cost of about $218 million. The annual profit generated by the wind farm would be over $6 billion. The return on investment (ROI) of the project is estimated at 2880.882%. The constructed onshore wind farm would avoid CO2 emission at over 11 MtCO2,eq/year as the energy generated is from the atmosphere. The wind farm would realize an average annual cash flow estimated at nearly $30 million after 20 years of operation. These savings would allow the installation of CO2 capture systems in conventional power plants. In addition, the analysis of uncertainties and risks was identified and quantified to estimate the confidence levels of the project development results. The risks have been assessed, and we recommend that the total uncertainty of the project is around 15%. The energy values in P75 and P90 are 10.08% and 19.22%, respectively, lower than the energy value in P50 of 11.60 GWh/An. Finally, the main policy recommendations for an inclusive design process are highlighted. The contribution of this study is to assist policy makers in making appropriate decisions in the development and implementation of energy and environmental policy in Cameroon and in many continental areas.

Stochastic Models of Electricity Consumption

The article considers a stochastic model of electricity consumption based on the convolution theory. It is assumed that the processes of switching on and off energy consumption on a city scale depend on a large number of independent random factors and have the form of a normal probability distribution. The functions of switching on and off the load are presented, graphs are plotted. The comparison of the intelligent power supply system with the existing power supply system in the Russian Federation is carried out. The reasons for the slow introduction of smart grids in the Russian Federation are revealed. At the moment, smart grids are not very popular in the Russian Federation, while in the countries of the European Union, the USA and China, projects related to the development, production of components and the widespread introduction of smart grids are actively receiving state financial support. Thus, the European Union allocates more than a billion dollars annually for projects in the field of electric power and smart grids. These funds are allocated according to the European Green Deal strategy. At the same time, the State Grid Corporation of China has introduced the concept of the "Global Energy Internet", which, in accordance with the government's expectation, will stimulate the smart grid market in the country. As in other countries of the world, the US electric power industry is also facing problems related to rising utility prices, fluctuations in peak load and the need to reduce carbon dioxide emissions. The consequence of this was the adoption at the end of 2021 of an "infrastructure" law providing for large-scale investments in green energy projects.

A guide to residential energy storage and rooftop solar: State net metering policies and utility rate tariff structures

Federal and state decarbonization goals have led to numerous financial incentives and policies designed to increase access and adoption of renewable energy systems. In combination with the declining cost of both solar photovoltaic and battery energy storage systems and rising electric utility rates, residential renewable adoption has become more favorable than ever. However, not all states provide the same opportunity for cost recovery, and the complicated and changing policy and utility landscape can make it difficult for households to make an informed decision on whether to install a renewable system. This paper is intended to provide a guide to households considering renewable adoption by discussing relevant factors that influence renewable system performance and payback, summarized in a state lookup table for quick reference. Five states are chosen as case studies to perform economic optimizations based on net metering policy, utility rate structure, and average electric utility price; these states are selected to be representative of the possible combinations of factors to aid in the decision-making process for customers in all states. The results of this analysis highlight the dual importance of both state support for renewables and price signals, as the benefits of residential renewable systems are best realized in states with net metering policies and above-average electric utility rates.

Affordability of electricity to rural consumers in Tanzania: An elephant in the room?

Affordability of electricity in rural areas has received negligible concern, yet with equivocal information. Thus, this paper extrapolates this disregarded aspect by raising empirical debates on the affordability of electricity connection and consumption while also predicting the factors of domestic electrical appliances among rural consumers. Affordability of electricity connection was measured by a catastrophic approach through the index of utility Price Income Ratio (PIR) at a threshold of 10%. Consumption affordability was estimated through PIR at a 5% share of household income, coupled with a monthly basic electricity consumption of 30 kWh per household. A multiple regression model was adopted to determine electrical appliance ownership in the household. The paper reveals that electricity connection was not affordable to consumers in the lowest income quintile (61.76%), who spent up to 33% of their income. On consumption, electricity was affordable as consumers spent no more than 5% of their household income. Moreover, the paper explains that electricity affordability and the desire for wellbeing motivate consumers to use domestic electrical appliances. Measuring the affordability of energy has a paucity in the energy literature. Thus, the paper provides insight into the present debate regarding affordability measures. Although the paper uniquely uncovers the affordability of electricity connection and consumption as prime factors for policy consideration, energy policy should also consider that affordability does not end at connection; rather, it extends to consumption. Energy policy must prioritise free technical services for rural power connection and subsidise consumption costs for the economically disadvantaged.

Network utility price regulation in Australia in the pre-first world war years

Australia has a long history of privately owned utility price regulation, one that is little known. This price control was designed to restrain the market power of several utilities (gas, rail, tramways, electricity, and water). The purpose of this paper, therefore, is to establish what types of price control that were used in Australia in the utilities sector before the First World War and to determine the degree to which this price control influenced efficiency. As price levels in this era were set in legislation, the lack of flexibility led to less-than-optimal outcomes, and eventually and led to new approaches were developed after 1912 to the utilities that remained in private ownership, and in some cases influenced the movement in Australia towards government control.

Assessing the price levels of medical service and influential factors: evidence from China

BackgroundMedical service prices play a crucial role in cost containment in China. This study aimed to assess the change in medical service price levels at the macro level and the relationship with relevant macroeconomic factors.MethodsData from the 2022 China Statistics Yearbook, the 2022 China Health Statistics Yearbook, and the 2020 China National Health Accounts Report were used. Time trends of health price levels, utilization, and health expenditure were examined. A time-series regression model was employed to measure the impact of service utilization and medical service prices on total medical service expenditure growth from 2000 to 2021. The Johansen cointegration test was conducted to test the cointegrating relationship between medical service price levels and total medical service expenditure, average wage of employees and CPI. The Granger causality test was performed to observe the direction of causality.ResultsDescriptive analyses showed consistent growth in utilization and medical service price levels from 2000 to 2021. The time-series model indicated that medical service expenditure was influenced by the rise in inpatient admissions and price levels of medical service and medicine. The Johansen cointegration test identified a long-term equilibrium relationship between medical service price levels and total medical service expenditure, average wage and CPI. The change in medical service price levels was the Granger cause of the change in medical service expenditure, but it had no impact on average wage and CPI. However, the change in medical service price levels was influenced by these three macroeconomic factors.ConclusionsThe growth of medical service expenditure in China was driven by inpatient use and price level. There was a long-term equilibrium relationship between medical service price levels and relevant macroeconomic factors. However, medical service price levels only affected medical service expenditure and have no impact on average wage and CPI. It is necessary to improve the value transmission mechanism of medical service prices.

Method for evaluating fairness of electricity tariffs with regard to income level of residential buildings

Modern advancements in energy technology, such as smart meters and renewable power generation, have contributed to the increasing penetration of time-variable electricity pricing plans. Under such plans, consumers experience a higher financial burden for consuming electricity when overall demand is high. Lower-income households may be disproportionately burdened by the transition to time-variable pricing because they tend to have less efficient homes and appliances, which may necessitate greater overall electricity consumption, especially during peak times. The goal of this work is to create a broadly applicable framework for evaluating the fairness of utility pricing plans. The proposed slope analysis method examines the distribution of a fairness metric across income levels in order to determine the level of fairness exhibited by a pricing plan. This work utilizes three fairness metrics, which are based on total household electricity bill and income, as a proof-of-concept for the slope analysis method and assesses their viability for fairness research. The proposed method also utilizes household energy models to represent various income levels for any location with sufficient data. The framework is evaluated using simulated households across 5 income levels and 3 climate zones in the United States. Fairness metrics are applied to the utility bills calculated under Real-Time Pricing and existing tariffs offered at each location. The proposed fairness evaluation method provides a quantitative measure of fairness and is broadly applicable across location and pricing plans. The metric based on the change in percentage of income spent on utilities considers the relative financial burden on households, which results in the slope analysis method outputting conclusive, accurate fairness determinations more often than the other examined metrics. The results demonstrate disparity in energy affordability, and the proposed slope analysis and model simulation methods provide a readily transferable testbed to evaluate energy policy equity.

Solar energy for low carbon buildings: choice of systems for minimal installation area, cost, and environmental impact

Solar application in buildings is limited by available installation areas. The performance of photovoltaic (PV) and solar collectors are compared in meeting the heating and cooling demand of a residential house using 100% solar energy through TRNSYS modelling of five systems that use air source heat pump and seasonal energy storage as optional assisting technologies. The results show that in a large scale, the PV working with air source heat pump is more efficient than the solar collector system. However, the photovoltaic/thermal (PV/T) is the most spatially efficient with an energy capacity of 551 kWh/m2, 10.6% higher than that of the PV. Compared with the air source heat pump heating system using grid power, using solar energy regardless of system formats can reduce emission by 72% in a lifetime of 20 years. Solar energy can become cost-effective if the utility price is increased to above 0.7 CNY/kWh. The results can help in renewable planning in the studied climate.

Grid abandonment potential of photovoltaic and storage-based system in China

Nowadays, owing to the price and technological advantages, photovoltaic (PV) and battery energy storage systems (BESS) have rapidly developed in China. The self-production and consumption of PV and BESS are causing consumers to abandon the power grid. However, this potential of grid abandonment in China's power sector remains unclear. Therefore, this paper deeply investigates the interaction between grid abandonment and the distribution price of utility, namely the utility death spiral to explore the potential in China. A method based on the innovation diffusion theory is proposed to reveal the causal loop of the death spiral. The Bass diffusion model, an approach of innovation diffusion theory, is applied to estimate the installations of rooftop PV systems and hybrid PV-BESS. After that, the distribution price, grid utilization level, and utility recovery cost based on China’s price structure are evaluated. Sensitivity analyses are conducted to investigate several significant inner drivers of the rooftop PV systems and hybrid PV-BESS expansions. Results indicate that the utility death spiral is unlikely to occur in China with low-solar radiation, while it will occur in a high-solar radiation scenario with 57% penetration of rooftop PV systems. Compared with the return rates of the utility requirement, the cost reduction of PV and BESS, and even a 1% growth in the retail price cause the death spiral. When the death spiral occurs, the permeations of PV and BESS in the cost reduction scenario are 51% and 56%, while the permeations are 52% and 51% in the scenario of 1% growth of the retail price. Additionally, several possible solutions to avoid the death spiral are discussed, such as discriminatory prices, business models, price mechanisms, and support mechanisms.

Feasibility of Green Hydrogen-Based Synthetic Fuel as a Carbon Utilization Option: An Economic Analysis

Singapore has committed to achieving net zero emissions by 2050, which requires the pursuit of multiple decarbonization pathways. CO2 utilization methods such as fuel production may provide a fast interim solution for carbon abatement. This paper evaluates the feasibility of green hydrogen-based synthetic fuel (synfuel) production as a method for utilizing captured CO2. We consider several scenarios: a baseline scenario with no changes, local production of synfuel with hydrogen imports, and overseas production of synfuel with CO2 exports. This paper aims to determine a CO2 price for synfuel production, evaluate the economic viability of local versus overseas production, and investigate the effect of different cost parameters on economic viability. Using the current literature, we estimate the associated production and transport costs under each scenario. We introduce a CO2 utilization price (CUP) that estimates the price of utilizing captured CO2 to produce synfuel, and an adjusted CO2 utilization price (CCUP) that takes into account the avoided emissions from crude oil-based fuel production. We find that overseas production is more economically viable compared to local production, with the best case CCUP bounds giving a range of 142–148 $/tCO2 in 2050 if CO2 transport and fuel shipping costs are low. This is primarily due to the high cost of hydrogen feedstock, especially the transport cost, which can offset the combined costs of CO2 transport and fuel shipping. In general, we find that any increase in the hydrogen feedstock cost can significantly affect the CCUP for local production. Sensitivity analysis reveals that hydrogen transport cost has a significant impact on the viability of local production and if this cost is reduced significantly, local production can be cheaper than overseas production. The same is true if the economies of scale for local production is significantly better than overseas production. A significantly lower carbon capture cost can also the reduce the CCUP significantly.

Maslow’s Hierarchy of Needs: A Framework for Understanding China’s SOEs, SMEs and Decentralisation

This study delves into the intricate interplay between state-owned enterprises (SOEs), disposable income and economic decentralisation within China’s economic landscape, all underpinned by the principles of Maslow’s hierarchy of needs. It highlights the unique roles of SOEs and small and medium enterprises (SMEs), while assessing disposable income’s effect in bolstering support for decentralisation. Emphasis is placed on whether a higher disposable income often a product of SOEs’ control over vital industries and utility prices can catalyse public enthusiasm for decentralisation. Utilising a spectrum of analytical techniques on secondary data, the study uncovers vital patterns that suggest a symbiotic relationship between SOEs and SMEs in advancing economic growth and decentralisation. The findings offer valuable insights for policy development and further understanding of the nexus between SOEs, disposable income and decentralisation, as contextualised within Maslow’s hierarchy of needs.

Electricity demand reduction through waste heat recovery in olefins plants based on a technology-agnostic approach

Developing systematic approaches for the identification of optimal WHR options in industrial applications is key to reducing plant-scale energy demands. In particular, electricity consumption accounts for more than half of industrial energy use, and its share is expected to grow with progressive electrification. In this paper, industrial WHR technologies including organic Rankine cycle (ORC) and absorption systems are investigated, and tools are developed to understand the sustainability and techno-economic impact of integrating these technologies within industrial processes and facilities. We specifically propose a data-driven technology-agnostic approach to evaluate the use of heat engines, which can in practice be ORC systems, and thermally-driven (i.e., absorption) heat pumps in the context of industrial WHR for plant-scale electricity demand reduction. The aim of this work is to explore three pathways for achieving efficiency improvements in bulk chemicals plants, represented here by olefins production facilities: (i) direct onsite power generation; (ii) enhancement of existing power generation processes; and (iii) reduction in power consumption by compressor efficiency improvements through waste-heat-driven cooling. The techno-economic performance of these technologies is assessed for five different countries representing a diverse portfolio of climates, technical and economic parameters (including utility prices), using fine-tuned thermodynamic and market-based costing models. The results reveal that the proposed approach has the potential to reduce emissions by between 5,000 tCO2(eq.)/year and 101,500 tCO2(eq.)/year depending on the scenario. The marginal abatement cost of the proposed solutions ranges from −1,200 $/tCO2(eq.) to −35 $/tCO2(eq.), with a payback time between 1.5 and 8 years depending on the scenario considered.

The Distributional and Fiscal Implications of Public Utility Pricing

The Distributional and Fiscal Implications of Public Utility Pricing