publication . Preprint . 2017

On the Efficiency of Connection Charges---Part II: Integration of Distributed Energy Resources

Munoz-Alvarez, Daniel; Garcia-Franco, Juan F.; Tong, Lang;
Open Access English
  • Published: 06 Feb 2017
Abstract
This two-part paper addresses the design of retail electricity tariffs for distribution systems with distributed energy resources (DERs). Part I presents a framework to optimize an ex-ante two-part tariff for a regulated monopolistic retailer who faces stochastic wholesale prices on the one hand and stochastic demand on the other. In Part II, the integration of DERs is addressed by analyzing their endogenous effect on the optimal two-part tariff and the induced welfare gains. Two DER integration models are considered: (i) a decentralized model involving behind-the-meter DERs in a net metering setting, and (ii) a centralized model involving DERs integrated by the...
Subjects
free text keywords: Mathematics - Optimization and Control, Mathematics - Probability, 91B24, 91B06
Related Organizations
Funded by
NSF| CPS:Medium:Collaborative Research:Information and Computation Hierarchy for Smart Grids
Project
  • Funder: National Science Foundation (NSF)
  • Project Code: 1135844
  • Funding stream: Directorate for Computer & Information Science & Engineering | Division of Computer and Network Systems
Download from
28 references, page 1 of 2

[1] D. Munoz-Alvarez and L. Tong, “On the Efficiency of Dynamic Retail Tariffs with Connection Charges-Part I: A Stochastic Optimization Formulation,” ArXiv Preprint, 2017.

[2] S. J. Brown and D. S. Sibley, The theory of public utility pricing. Cambridge University Press, 1986.

[3] D. Munoz-Alvarez and L. Tong, “On the Efficiency of Dynamic Retail Tariffs with Connection Charges-Part II: Distributed Renewable and Storage Resources,” ArXiv Preprint, 2017.

[4] D. Mun˜oz- A´lvarez, “Regulatory approaches to the integration of renewable and storage resources into electricity markets,” Ph.D. dissertation, Cornell University, 2017.

[5] J. Reneses and M. P. Rodr´ıguez-Ortega, “Distribution pricing: theoretical principles and practical approaches,” IET Generation, Transmission & Distribution, no. 8, pp. 1645-1655, oct 2014.

[6] L. Wood, J. Howat, R. Cavanagh, and S. Borenstein, “Recovery of utility fixed costs: Utility, consumer, environmental and economist perspectives,” LBNL, Tech. Rep., 2016.

[7] K. W. Costello, “Major challenges of distributed generation for state utility regulators,” Electricity Journal, vol. 28, no. 3, pp. 8-25, 2015.

[8] L. Bird, J. Mclaren, and J. Heeter, “Regulatory Considerations Associated with the Expanded Adoption of Distributed Solar,” NREL, Tech. Rep. November, 2013. [OpenAIRE]

[9] R. Schmalensee and V. Bulovic, “The Future of Solar Energy,” Massachusetts Institute of Technology, Tech. Rep., 2015.

[10] National Association of Regulatory Utility Commissioners (NARUC), “Distributed Energy Resources Rate Design and Compensation,” National Association of Regulatory Utility Commissioners, Manual November, 2016.

[11] C. Eid, J. Reneses Guille´n, P. Fr´ıas Mar´ın, and R. Hakvoort, “The economic effect of electricity net-metering with solar PV: Consequences for network cost recovery, cross subsidies and policy objectives,” Energy Policy, vol. 75, pp. 244-254, 2014.

[12] J. Jargstorf and R. Belmans, “Multi-objective low voltage grid tariff setting,” IET Generation, Transmission & Distribution, vol. 9, no. 15, pp. 2328-2336, 2015. [OpenAIRE]

[13] N. R. Darghouth, R. H. Wiser, G. Barbose, and A. D. Mills, “Net metering and market feedback loops: Exploring the impact of retail rate design on distributed PV deployment,” Applied Energy, vol. 162, 2016.

[14] R. Sioshansi, “Retail electricity tariff and mechanism design to incentivize distributed renewable generation,” Energy Policy, vol. 95, 2016. [OpenAIRE]

[15] M. Chew, M. Heling, C. Kerrigan, D. Jin, A. Tinker, M. Kolb, S. Buller, and L. Huang, “Modeling dg adoption using electric rate feedback loops,” in 31st USAEE/IAEE North American Conference, 2012.

28 references, page 1 of 2
Powered by OpenAIRE Open Research Graph
Any information missing or wrong?Report an Issue