Dynamic Net Metering for Energy Communities

Fuente: arXiv
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Main Authors: Alahmed, Ahmed S., Tong, Lang
Format: Preprint
Published: 2023
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author Alahmed, Ahmed S.
Tong, Lang
author_facet Alahmed, Ahmed S.
Tong, Lang
contents We propose a social welfare maximizing market mechanism for an energy community that aggregates individual and community-shared energy resources under a general net energy metering (NEM) policy. Referred to as Dynamic NEM (D-NEM), the proposed mechanism dynamically sets the community NEM prices based on aggregated community resources, including flexible consumption, storage, and renewable generation. D-NEM guarantees a higher benefit to each community member than possible outside the community, and no sub-communities would be better off departing from its parent community. D-NEM aligns each member's incentive with that of the community such that each member maximizing individual surplus under D-NEM results in maximum community social welfare. Empirical studies compare the proposed mechanism with existing benchmarks, demonstrating its welfare benefits, operational characteristics, and responsiveness to NEM rates.
format Preprint
id arxiv_https___arxiv_org_abs_2306_13677
institution arXiv
publishDate 2023
record_format arxiv
spellingShingle Dynamic Net Metering for Energy Communities
Alahmed, Ahmed S.
Tong, Lang
Systems and Control
Computer Science and Game Theory
Theoretical Economics
Optimization and Control
We propose a social welfare maximizing market mechanism for an energy community that aggregates individual and community-shared energy resources under a general net energy metering (NEM) policy. Referred to as Dynamic NEM (D-NEM), the proposed mechanism dynamically sets the community NEM prices based on aggregated community resources, including flexible consumption, storage, and renewable generation. D-NEM guarantees a higher benefit to each community member than possible outside the community, and no sub-communities would be better off departing from its parent community. D-NEM aligns each member's incentive with that of the community such that each member maximizing individual surplus under D-NEM results in maximum community social welfare. Empirical studies compare the proposed mechanism with existing benchmarks, demonstrating its welfare benefits, operational characteristics, and responsiveness to NEM rates.
title Dynamic Net Metering for Energy Communities
topic Systems and Control
Computer Science and Game Theory
Theoretical Economics
Optimization and Control
url https://arxiv.org/abs/2306.13677