CVaR-Based Retail Electricity Pricing in Day-ahead Scheduling of Microgrids

Monfared, Houman Jamshidi, Ghasemi, Ahmad, Loni, Abdolah and Marzband, Mousa (2021) CVaR-Based Retail Electricity Pricing in Day-ahead Scheduling of Microgrids. Energy. p. 120529. ISSN 0360-5442 (In Press)

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Official URL: https://doi.org/10.1016/j.energy.2021.120529

Abstract

One of the most important methods for implementing the demand response (DR) schemes is to allocate the time-varying prices to the power demand by consumers. Indeed, the effective implementation of DR programs passes from a successful pricing way of retail electricity. However, the massive influence of renewable energy sources with unpredictable generation in today’s power systems such as Micro-grids has made any planning encounter serious challenges. Therefore, in this paper, a new retail electricity pricing method has been proposed to reduce the effects of risk resulting from the uncertain generation of renewable energy sources and the wholesale electricity market’s hourly estimated prices. To this end, a CVaR (Conditional Value at Risk) optimization framework is used to determine the next day’s energy management planning of Micro-grid and retail electricity prices. Simulation results demonstrate that the use of risk-averse conditions, in comparison with non-risk conditions, results in lessening the standard deviation of optimal retail prices and the expected cost. In more detail, the standard deviation of optimal retail prices and the expected cost is decreased by 29.94% and 24.63%, respectively. Moreover, the results show a 5.92% reduction in the peak value of demand.

Item Type: Article
Uncontrolled Keywords: Micro-grid (MG), Energy Management (EM), Conditional Value-At-Risk (CVaR), Retail Electricity Pricing (REP), Demand Response (DR)
Subjects: H600 Electronic and Electrical Engineering
H800 Chemical, Process and Energy Engineering
Department: Faculties > Engineering and Environment > Mathematics, Physics and Electrical Engineering
Depositing User: Rachel Branson
Date Deposited: 12 Apr 2021 09:17
Last Modified: 12 Apr 2021 09:30
URI: http://nrl.northumbria.ac.uk/id/eprint/45893

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