Effects of Dynamic Pricing on the Design and Operation of Distributed Energy Resource Networks

Sidnell, Tim; Dorneanu, Bogdan; Mechleri, Evgenia; Vassiliadis, Vassilios S.; Arellano-Garcia, Harvey

doi:10.3390/pr9081306

Open AccessFeature PaperEditor’s ChoiceArticle

Effects of Dynamic Pricing on the Design and Operation of Distributed Energy Resource Networks

by

Tim Sidnell

¹,

Bogdan Dorneanu

^2,*

,

Evgenia Mechleri

¹,

Vassilios S. Vassiliadis

³ and

Harvey Arellano-Garcia

^1,2

¹

Department of Chemical and Process Engineering, University of Surrey, Guildford GU27XH, UK

²

LS Prozess- und Anlagentechnik, Brandenburgische Technische Universität Cottbus-Senftenberg, D-03046 Cottbus, Germany

³

Cambridge Simulation Solutions Ltd., Cambridge CB25 9LS, UK

^*

Author to whom correspondence should be addressed.

Processes 2021, 9(8), 1306; https://doi.org/10.3390/pr9081306

Submission received: 12 July 2021 / Revised: 23 July 2021 / Accepted: 24 July 2021 / Published: 28 July 2021

(This article belongs to the Special Issue Bioinspired Computation for Sustainable Energy Systems)

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Abstract

This paper presents a framework for the use of variable pricing to control electricity imported/exported to/from both fixed and unfixed residential distributed energy resource (DER) network designs. The framework shows that networks utilizing much of their own energy, and importing little from the national grid, are barely affected by dynamic import pricing, but are encouraged to sell more by dynamic export pricing. An increase in CO₂ emissions per kWh of energy produced is observed for dynamic import and export, against a baseline configuration utilizing constant pricing. This is due to feed-in tariffs (FITs) that encourage CHP generation over lower-carbon technologies. Furthermore, batteries are shown to be expensive in systems receiving income from FITs and grid exports, but for the cases when they sell to/buy from the grid using dynamic pricing, their use in the networks becomes more economical.

Keywords: distributed energy resource (DER); dynamic pricing; mixed-integer linear programming (MILP); renewable heat incentive (RHI); feed-in tariff (FIT); electricity storage in batteries

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MDPI and ACS Style

Sidnell, T.; Dorneanu, B.; Mechleri, E.; Vassiliadis, V.S.; Arellano-Garcia, H. Effects of Dynamic Pricing on the Design and Operation of Distributed Energy Resource Networks. Processes 2021, 9, 1306. https://doi.org/10.3390/pr9081306

AMA Style

Sidnell T, Dorneanu B, Mechleri E, Vassiliadis VS, Arellano-Garcia H. Effects of Dynamic Pricing on the Design and Operation of Distributed Energy Resource Networks. Processes. 2021; 9(8):1306. https://doi.org/10.3390/pr9081306

Chicago/Turabian Style

Sidnell, Tim, Bogdan Dorneanu, Evgenia Mechleri, Vassilios S. Vassiliadis, and Harvey Arellano-Garcia. 2021. "Effects of Dynamic Pricing on the Design and Operation of Distributed Energy Resource Networks" Processes 9, no. 8: 1306. https://doi.org/10.3390/pr9081306

APA Style

Sidnell, T., Dorneanu, B., Mechleri, E., Vassiliadis, V. S., & Arellano-Garcia, H. (2021). Effects of Dynamic Pricing on the Design and Operation of Distributed Energy Resource Networks. Processes, 9(8), 1306. https://doi.org/10.3390/pr9081306

Note that from the first issue of 2016, this journal uses article numbers instead of page numbers. See further details here.

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Effects of Dynamic Pricing on the Design and Operation of Distributed Energy Resource Networks

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