TY - BOOK
T1 - MINIMUM RELIABILITY SUBSCRIPTION, CAPITAL EFFICIENT COMMUNITY MICROGRIDS WITH HIGH SHARE OF RENEWABLES
AU - Minghui Gui, Emi
AU - MacGill, Iain
AU - Betz, Regina A.
PY - 2020/6
Y1 - 2020/6
N2 - This paper proposes a capacity subscription mechanism combined with a differential pricing technique to create an inherent market to incentivize investments as well as long-term demand response behavior in renewable energy microgrids. This proposed planning framework with the goal of social welfare maximization and revenue adequacy, incorporates customer preferences through individual capacity subscription to ensure the desired minimum level of reliability, so to prevent over-capacity or undercapacity. A dynamic pricing tariff design ensures revenue adequacy, and an easy-to-implement demand response mechanism provides economic incentives for customers to maximize own benefits through generation following. This is particularly advantageous in microgrids incorporating large portions of highly variable renewable energy generations. This framework also greatly simplifies the microgrid investment planning, operation and scheduling. Compared to a standard capacity subscription design, simulation results show the advantages of the proposed method in improving the customers’ surplus, and supply-demand matching, achieving cost recovery, and desired level of reliability of the customers.
AB - This paper proposes a capacity subscription mechanism combined with a differential pricing technique to create an inherent market to incentivize investments as well as long-term demand response behavior in renewable energy microgrids. This proposed planning framework with the goal of social welfare maximization and revenue adequacy, incorporates customer preferences through individual capacity subscription to ensure the desired minimum level of reliability, so to prevent over-capacity or undercapacity. A dynamic pricing tariff design ensures revenue adequacy, and an easy-to-implement demand response mechanism provides economic incentives for customers to maximize own benefits through generation following. This is particularly advantageous in microgrids incorporating large portions of highly variable renewable energy generations. This framework also greatly simplifies the microgrid investment planning, operation and scheduling. Compared to a standard capacity subscription design, simulation results show the advantages of the proposed method in improving the customers’ surplus, and supply-demand matching, achieving cost recovery, and desired level of reliability of the customers.
M3 - Commissioned Report
BT - MINIMUM RELIABILITY SUBSCRIPTION, CAPITAL EFFICIENT COMMUNITY MICROGRIDS WITH HIGH SHARE OF RENEWABLES
PB - UNSW Press
ER -
