Designing Individual Penalty Signals for Improved Energy Flexibility Utilisation

The energy flexibility associated with energy consumption must be exploited to accommodate more fluctuating renewable energy. The only solution that enables this without violating privacy concerns is penalty-based control, where penalty signals are designed to give incentives for the consumers to adjust their demand according to the needs of the grid. Designing the penalty signals is a challenging task due to different flexibility potential offered by various energy consuming systems. In this paper, it is shown that the best utilisation of energy flexibility requires individual penalty signals tuned towards the energy flexibility of each consumer. Here, we present a very simple yet novel approach for designing such individual penalty signals for each consumer, such that the value of the energy flexibility is increased, for both the grid operators and the consumers. (C) 2019, IFAC (International Federation of Automatic Control) Hosting by Elsevier Ltd. All rights reserved.