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Aggregation of Households in Community Energy Systems: An Analysis from Actors’ and Market Perspectives

Sarfarazi, Seyedfarzad and Deissenroth-Uhrig, Marc and Bertsch, Valentin (2020) Aggregation of Households in Community Energy Systems: An Analysis from Actors’ and Market Perspectives. Energies, 13 (19). Multidisciplinary Digital Publishing Institute (MDPI). doi: 10.3390/en13195154. ISSN 1996-1073.

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In decentralized energy systems, electricity generated and flexibility offered by households can be organized in the form of community energy systems. Business models, which enable this aggregation at the community level, will impact on the involved actors and the electricity market. For the case of Germany, in this paper different aggregation scenarios are analyzed from the perspective of actors and the market. The main components in these scenarios are the Community Energy Storage (CES) technology, the electricity tariff structure, and the aggregation goal. For this evaluation, a bottom-up community energy system model is presented, in which the households and retailer are the key actors. In our model, we distinguish between the households with inflexible electricity load and the flexible households that own a heat pump or Photovoltaic (PV) storage systems. By using a game-theoretic approach and modeling the interaction between the retailer and households as a Stackelberg game, a community real-time pricing structure is derived. To find the solution of the modeled Stackelberg game, a genetic algorithm is implemented. To analyze the impact of the aggregation scenarios on the electricity market, a “Market Alignment Indicator” is proposed. The results show that under the considered regulatory framework, the deployment of a CES can increase the retailer’s operational profits while improving the alignment of the community energy system with the signals from the electricity market. Depending on the aggregation goal of the retailer, the implementation of community real-time pricing could lead to a similar impact. Moreover, such a tariff structure can lead to financial benefits for flexible households.

Item URL in elib:https://elib.dlr.de/137553/
Document Type:Article
Title:Aggregation of Households in Community Energy Systems: An Analysis from Actors’ and Market Perspectives
AuthorsInstitution or Email of AuthorsAuthor's ORCID iD
Sarfarazi, SeyedfarzadSeyedfarzad.sarfarazi (at) dlr.dehttps://orcid.org/0000-0003-0532-5907
Deissenroth-Uhrig, Marcm.deissenroth-uhrig (at) htwsaar.dehttps://orcid.org/0000-0002-9103-418X
Bertsch, Valentinvalentin.bertsch (at) ee.ruhr-uni-bochum.dehttps://orcid.org/0000-0001-9477-4805
Date:3 October 2020
Journal or Publication Title:Energies
Refereed publication:Yes
Open Access:Yes
Gold Open Access:Yes
In ISI Web of Science:Yes
DOI :10.3390/en13195154
Publisher:Multidisciplinary Digital Publishing Institute (MDPI)
Series Name:Special Issue Energy Economics and Innovation of Smart Cities
Keywords:decentralized energy system; energy community; community energy storage; community energy system; game-theory; Stackelberg
HGF - Research field:Energy
HGF - Program:Technology, Innovation and Society
HGF - Program Themes:Renewable Energy and Material Resources for Sustainable Futures - Integrating at Different Scales
DLR - Research area:Energy
DLR - Program:E SY - Energy Systems Analysis
DLR - Research theme (Project):E - Systems Analysis and Technology Assessment (old)
Location: Stuttgart
Institutes and Institutions:Institute of Engineering Thermodynamics > Energy Systems Analysis
Deposited By: Sarfarazi, Seyedfarzad
Deposited On:04 Dec 2020 14:38
Last Modified:04 Dec 2020 14:38

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