Dynamic Pricing in an Energy Community Providing Capacity Limitation Services

Description

A mathematical framework using bi-level optimization is proposed in which dynamic energy prices are used to coordinate prosumers in an energy community that subscribes to a limit on its maximum power import from the external grid in exchange for tariff reductions from the distribution system operator. In the upper-level problem, an energy community manager minimizes the total operational cost of the community while setting energy prices. In the lower-level problem, each community member optimizes their energy usage to minimize their daily cost based on the set prices. The proposed bi-level model is reformulated into a mixed integer quadratic problem and applied to a 15-node radial distribution grid case study in which different degrees of freedom are applied to the pricing constraints and the performance compared to other coordination methods.

Period	16 Oct 2023
Held at	INFORMS, United States, Maryland