Empowering customers in local electricity market: A prosumer segmentation and operating envelope strategy for joint cost reduction and profit maximization

Pratik Mochi, Kartik S. Pandya, Ricardo Faia, Dharmesh Dabhi, Joao Soares, Zita Vale

    Research output: Contribution to journalArticlepeer-review

    4 Citations (Scopus)

    Abstract

    In the future power grid, a local electricity market (LEM) with renewable energy sources and a smart grid will play a key role. Consumers, prosumers and small distributed energy resources on the other hand, play an important role in local energy transactions. In the LEM under study, the system costs are decreased and prosumers are given additional incentives for exporting the power in the grid or LEM. This paradigm is designed to boost the willingness and engagement of customers in local electricity market, so empowering them to maximize their revenues. The suggested work combines customer segmentation and operating envelope to achieve both system cost reduction & customer profit maximization objectives. The optimization challenge also takes into account the performance of the system with and without LEM. A cost comparison of the system between various cases and scenarios yields positive findings. The impact of incentives on prosumers’ gross revenue is also examined. A system with 30 local participants makes up the test case system. By comparing the results of various scenarios and cases, minimum cost reduction of 0.2 % and maximum cost reduction of 25.8 % is achieved. While analyzing profit of players, incentive contributes a minimum 7 % and maximum 8 % in total revenue.

    Original languageEnglish
    Article number109908
    JournalElectric Power Systems Research
    Volume226
    DOIs
    Publication statusPublished - Jan 2024

    Keywords

    • Customer engagement
    • Local energy market
    • Operating envelope
    • Optimization strategy
    • Peer-to-peer energy
    • Willingness to pay

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