Operating-Envelopes-Aware Decentralized Welfare Maximization for Energy Communities

Ahmed S. Alahmed; Guido Cavraro; Andrey Bernstein; Lang Tong

doi:10.1109/Allerton58177.2023.10313459

Operating-Envelopes-Aware Decentralized Welfare Maximization for Energy Communities

Ahmed S. Alahmed^*
, Guido Cavraro
, Andrey Bernstein
, Lang Tong

^*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › peer-review

9 Scopus citations

Abstract

We propose an operating-envelope-aware, prosumer-centric, and efficient energy community that aggregates individual and shared community distributed energy resources and transacts with a regulated distribution system operator (DSO) under a generalized net energy metering tariff design. To ensure safe network operation, the DSO imposes dynamic export and import limits, known as dynamic operating envelopes, on end-users' revenue meters. Given the operating envelopes, we propose an incentive-aligned community pricing mechanism under which the decentralized optimization of community members' benefit implies the optimization of overall community welfare. The proposed pricing mechanism satisfies the cost-causation principle and ensures the stability of the energy community in a coalition game setting. Numerical examples provide insights into the characteristics of the proposed pricing mechanism and quantitative measures of its performance.

Original language	English
Title of host publication	2023 59th Annual Allerton Conference on Communication, Control, and Computing, Allerton 2023
Publisher	Institute of Electrical and Electronics Engineers Inc.
ISBN (Electronic)	9798350328141
DOIs	https://doi.org/10.1109/Allerton58177.2023.10313459
State	Published - 2023
Externally published	Yes
Event	59th Annual Allerton Conference on Communication, Control, and Computing, Allerton 2023 - Monticello, United States Duration: 26 Sep 2023 → 29 Sep 2023

Publication series

Name	2023 59th Annual Allerton Conference on Communication, Control, and Computing, Allerton 2023

Conference

Conference	59th Annual Allerton Conference on Communication, Control, and Computing, Allerton 2023
Country/Territory	United States
City	Monticello
Period	26/09/23 → 29/09/23

Bibliographical note

Publisher Copyright:
© 2023 IEEE.

Keywords

distributed energy resources aggregation
energy community
mechanism design
net metering
operating envelopes
pricing mechanism
transactive energy system

ASJC Scopus subject areas

Artificial Intelligence
Computational Theory and Mathematics
Computer Networks and Communications
Computer Science Applications
Computational Mathematics
Control and Optimization

Access to Document

10.1109/Allerton58177.2023.10313459

Cite this

Alahmed, A. S., Cavraro, G., Bernstein, A., & Tong, L. (2023). Operating-Envelopes-Aware Decentralized Welfare Maximization for Energy Communities. In 2023 59th Annual Allerton Conference on Communication, Control, and Computing, Allerton 2023 (2023 59th Annual Allerton Conference on Communication, Control, and Computing, Allerton 2023). Institute of Electrical and Electronics Engineers Inc.. https://doi.org/10.1109/Allerton58177.2023.10313459

Alahmed, Ahmed S. ; Cavraro, Guido ; Bernstein, Andrey et al. / Operating-Envelopes-Aware Decentralized Welfare Maximization for Energy Communities. 2023 59th Annual Allerton Conference on Communication, Control, and Computing, Allerton 2023. Institute of Electrical and Electronics Engineers Inc., 2023. (2023 59th Annual Allerton Conference on Communication, Control, and Computing, Allerton 2023).

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abstract = "We propose an operating-envelope-aware, prosumer-centric, and efficient energy community that aggregates individual and shared community distributed energy resources and transacts with a regulated distribution system operator (DSO) under a generalized net energy metering tariff design. To ensure safe network operation, the DSO imposes dynamic export and import limits, known as dynamic operating envelopes, on end-users' revenue meters. Given the operating envelopes, we propose an incentive-aligned community pricing mechanism under which the decentralized optimization of community members' benefit implies the optimization of overall community welfare. The proposed pricing mechanism satisfies the cost-causation principle and ensures the stability of the energy community in a coalition game setting. Numerical examples provide insights into the characteristics of the proposed pricing mechanism and quantitative measures of its performance.",

keywords = "distributed energy resources aggregation, energy community, mechanism design, net metering, operating envelopes, pricing mechanism, transactive energy system",

author = "Alahmed, \{Ahmed S.\} and Guido Cavraro and Andrey Bernstein and Lang Tong",

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year = "2023",

doi = "10.1109/Allerton58177.2023.10313459",

language = "English",

series = "2023 59th Annual Allerton Conference on Communication, Control, and Computing, Allerton 2023",

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Alahmed, AS, Cavraro, G, Bernstein, A & Tong, L 2023, Operating-Envelopes-Aware Decentralized Welfare Maximization for Energy Communities. in 2023 59th Annual Allerton Conference on Communication, Control, and Computing, Allerton 2023. 2023 59th Annual Allerton Conference on Communication, Control, and Computing, Allerton 2023, Institute of Electrical and Electronics Engineers Inc., 59th Annual Allerton Conference on Communication, Control, and Computing, Allerton 2023, Monticello, United States, 26/09/23. https://doi.org/10.1109/Allerton58177.2023.10313459

Operating-Envelopes-Aware Decentralized Welfare Maximization for Energy Communities. / Alahmed, Ahmed S.; Cavraro, Guido; Bernstein, Andrey et al.
2023 59th Annual Allerton Conference on Communication, Control, and Computing, Allerton 2023. Institute of Electrical and Electronics Engineers Inc., 2023. (2023 59th Annual Allerton Conference on Communication, Control, and Computing, Allerton 2023).

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › peer-review

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AU - Alahmed, Ahmed S.

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AU - Bernstein, Andrey

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PY - 2023

Y1 - 2023

N2 - We propose an operating-envelope-aware, prosumer-centric, and efficient energy community that aggregates individual and shared community distributed energy resources and transacts with a regulated distribution system operator (DSO) under a generalized net energy metering tariff design. To ensure safe network operation, the DSO imposes dynamic export and import limits, known as dynamic operating envelopes, on end-users' revenue meters. Given the operating envelopes, we propose an incentive-aligned community pricing mechanism under which the decentralized optimization of community members' benefit implies the optimization of overall community welfare. The proposed pricing mechanism satisfies the cost-causation principle and ensures the stability of the energy community in a coalition game setting. Numerical examples provide insights into the characteristics of the proposed pricing mechanism and quantitative measures of its performance.

AB - We propose an operating-envelope-aware, prosumer-centric, and efficient energy community that aggregates individual and shared community distributed energy resources and transacts with a regulated distribution system operator (DSO) under a generalized net energy metering tariff design. To ensure safe network operation, the DSO imposes dynamic export and import limits, known as dynamic operating envelopes, on end-users' revenue meters. Given the operating envelopes, we propose an incentive-aligned community pricing mechanism under which the decentralized optimization of community members' benefit implies the optimization of overall community welfare. The proposed pricing mechanism satisfies the cost-causation principle and ensures the stability of the energy community in a coalition game setting. Numerical examples provide insights into the characteristics of the proposed pricing mechanism and quantitative measures of its performance.

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KW - energy community

KW - mechanism design

KW - net metering

KW - operating envelopes

KW - pricing mechanism

KW - transactive energy system

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BT - 2023 59th Annual Allerton Conference on Communication, Control, and Computing, Allerton 2023

PB - Institute of Electrical and Electronics Engineers Inc.

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Alahmed AS, Cavraro G, Bernstein A, Tong L. Operating-Envelopes-Aware Decentralized Welfare Maximization for Energy Communities. In 2023 59th Annual Allerton Conference on Communication, Control, and Computing, Allerton 2023. Institute of Electrical and Electronics Engineers Inc. 2023. (2023 59th Annual Allerton Conference on Communication, Control, and Computing, Allerton 2023). doi: 10.1109/Allerton58177.2023.10313459

Operating-Envelopes-Aware Decentralized Welfare Maximization for Energy Communities

Abstract

Publication series

Conference

Bibliographical note

Keywords

ASJC Scopus subject areas

Access to Document

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Cite this