Cost-Effective Community Battery Sizing and Operation Within a Local Market Framework
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(Accepted version)
Date
2023
Authors
Dinh, N.T.
Karimi-Arpanahi, S.
Pourmousavi, S.A.
Guo, M.
Liisberg, J.A.R.
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Journal article
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IEEE Transactions on Energy Markets, Policy and Regulation, 2023; 1(4):536-548
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Nam Trong Dinh, Sahand Karimi-Arpanahi, S. Ali Pourmousavi, Mingyu Guo, and Jon Anders Reichert Liisberg
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Abstract
Extreme peak power demand is amajor factor behind high electricity prices, despite occurring only for a few hours annually. This peak demand drives the need for costly upgrades for the network asset, which is ultimately passed on to the end-users through higher electricity network tariffs. To alleviate this issue, we propose a solution for cost-effective peak demand reduction in a local neighbourhood using prosumer-centric flexibility and community battery storage (CBS). Accordingly, we present a CBS sizing framework for peak demand reduction considering receding horizon operation and a bilevel program in which a profit-making entity (leader) operates the CBS and dynamically sets mark-up prices. Through the dynamic mark-up and real-time wholesale market prices, the CBS operator can harness the demand-side flexibility provided by the load-shifting behaviour of the local prosumers (followers). To this end, we develop a realistic priceresponsive model that adjusts prosumers’ behaviour with respect to fluctuations of dynamic prices while considering prosumers’ discomfort caused by load shifting. The simulation results based on real-world data show that adopting the proposed framework and the price-responsive model not only increases the CBS owner’s profit but also reduces peak demand and prosumers’ electricity bills by 38% and 24%, respectively.
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© 2023 IEEE. Personal use is permitted, but republication/redistribution requires IEEE permission.