IDEAS home Printed from https://ideas.repec.org/a/eee/eneeco/v97y2021ics0140988320303741.html
   My bibliography  Save this article

An integrated decision approach for energy procurement and tariff definition for prosumers aggregations

Author

Listed:
  • Ferrara, Massimiliano
  • Violi, Antonio
  • Beraldi, Patrizia
  • Carrozzino, Gianluca
  • Ciano, Tiziana

Abstract

The paper deals with the energy procurement and economic management problem for an aggregation of prosumers at a strategic/tactical level. This decision process, usually in charge of the “aggregator”, the entity which coordinates market operations and resource management for the entire coalition, consists into the definition of the optimal mix of energy to procure from the available sources (bilateral contracts, self-production, day-ahead market) and the tariff scheme to offer to the members of the coalition for buying and selling energy. This problem is made more complex by the presence of several sources of uncertainty, like market prices, overall demand of the coalition and production from renewable systems. To the best of our knowledge, even if several contributions have been proposed to deal with the energy procurement and tariff definition problems separately, none of them has addressed the decision process as a whole. In this paper, we propose a multiperiod 2-stage stochastic programming approach, which models the strict relations between the decisions to be made and controls risk exposure by a mean-risk objective function with the Conditional Value at Risk as risk measure. Moreover, the proposed approach aims at defining 2-components tariffs, with a variable part that is related to the random evolution of market prices, in order to enhance prosumers' responsiveness. Preliminary computational results show the effectiveness of the proposed approach as a decision support tool to guarantee the economic sustainability of the coalition and the convenience of single prosumers.

Suggested Citation

  • Ferrara, Massimiliano & Violi, Antonio & Beraldi, Patrizia & Carrozzino, Gianluca & Ciano, Tiziana, 2021. "An integrated decision approach for energy procurement and tariff definition for prosumers aggregations," Energy Economics, Elsevier, vol. 97(C).
    • Handle: RePEc:eee:eneeco:v:97:y:2021:i:c:s0140988320303741
    DOI: 10.1016/j.eneco.2020.105034
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0140988320303741
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.eneco.2020.105034?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Zare, Kazem & Moghaddam, Mohsen Parsa & Sheikh El Eslami, Mohammad Kazem, 2010. "Electricity procurement for large consumers based on Information Gap Decision Theory," Energy Policy, Elsevier, vol. 38(1), pages 234-242, January.
    2. Mohammad Ali Fotouhi Ghazvini & João Soares & Hugo Morais & Rui Castro & Zita Vale, 2017. "Dynamic Pricing for Demand Response Considering Market Price Uncertainty," Energies, MDPI, vol. 10(9), pages 1-20, August.
    3. Patrizia Beraldi & Antonio Violi & Maria Elena Bruni & Gianluca Carrozzino, 2017. "A Probabilistically Constrained Approach for the Energy Procurement Problem," Energies, MDPI, vol. 10(12), pages 1-17, December.
    4. Fridgen, Gilbert & Kahlen, Micha & Ketter, Wolfgang & Rieger, Alexander & Thimmel, Markus, 2018. "One rate does not fit all: An empirical analysis of electricity tariffs for residential microgrids," Applied Energy, Elsevier, vol. 210(C), pages 800-814.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Silva, Rodolfo Rodrigues Barrionuevo & Martins, André Christóvão Pio & Soler, Edilaine Martins & Baptista, Edméa Cássia & Balbo, Antonio Roberto & Nepomuceno, Leonardo, 2022. "Two-stage stochastic energy procurement model for a large consumer in hydrothermal systems," Energy Economics, Elsevier, vol. 107(C).
    2. Beraldi, Patrizia & Khodaparasti, Sara, 2023. "Designing electricity tariffs in the retail market: A stochastic bi-level approach," International Journal of Production Economics, Elsevier, vol. 257(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Thibaut Th'eate & S'ebastien Mathieu & Damien Ernst, 2020. "An Artificial Intelligence Solution for Electricity Procurement in Forward Markets," Papers 2006.05784, arXiv.org, revised Dec 2020.
    2. Thibaut Théate & Sébastien Mathieu & Damien Ernst, 2020. "An Artificial Intelligence Solution for Electricity Procurement in Forward Markets," Energies, MDPI, vol. 13(23), pages 1-17, December.
    3. Najafi, Arsalan & Falaghi, Hamid & Contreras, Javier & Ramezani, Maryam, 2016. "Medium-term energy hub management subject to electricity price and wind uncertainty," Applied Energy, Elsevier, vol. 168(C), pages 418-433.
    4. Savelli, Iacopo & Morstyn, Thomas, 2021. "Electricity prices and tariffs to keep everyone happy: A framework for fixed and nodal prices coexistence in distribution grids with optimal tariffs for investment cost recovery," Omega, Elsevier, vol. 103(C).
    5. Maria A. Franco & Stefan N. Groesser, 2021. "A Systematic Literature Review of the Solar Photovoltaic Value Chain for a Circular Economy," Sustainability, MDPI, vol. 13(17), pages 1-35, August.
    6. Astriani, Yuli & Shafiullah, GM & Shahnia, Farhad, 2021. "Incentive determination of a demand response program for microgrids," Applied Energy, Elsevier, vol. 292(C).
    7. Vinyals, Meritxell, 2021. "Scalable multi-agent local energy trading — Meeting regulatory compliance and validation in the Cardiff grid," Applied Energy, Elsevier, vol. 298(C).
    8. Hennig, Roman J. & Ribó-Pérez, David & de Vries, Laurens J. & Tindemans, Simon H., 2022. "What is a good distribution network tariff?—Developing indicators for performance assessment," Applied Energy, Elsevier, vol. 318(C).
    9. Ribó-Pérez, David & Heleno, Miguel & Álvarez-Bel, Carlos, 2021. "The flexibility gap: Socioeconomic and geographical factors driving residential flexibility," Energy Policy, Elsevier, vol. 153(C).
    10. Say, Kelvin & John, Michele & Dargaville, Roger, 2019. "Power to the people: Evolutionary market pressures from residential PV battery investments in Australia," Energy Policy, Elsevier, vol. 134(C).
    11. Ben-Haim, Yakov, 2021. "Feedback for energy conservation: An info-gap approach," Energy, Elsevier, vol. 223(C).
    12. Sepúlveda-Mora, Sergio B. & Hegedus, Steven, 2021. "Making the case for time-of-use electric rates to boost the value of battery storage in commercial buildings with grid connected PV systems," Energy, Elsevier, vol. 218(C).
    13. Silva, Rodolfo Rodrigues Barrionuevo & Martins, André Christóvão Pio & Soler, Edilaine Martins & Baptista, Edméa Cássia & Balbo, Antonio Roberto & Nepomuceno, Leonardo, 2022. "Two-stage stochastic energy procurement model for a large consumer in hydrothermal systems," Energy Economics, Elsevier, vol. 107(C).
    14. Hossain, Md Alamgir & Pota, Hemanshu Roy & Squartini, Stefano & Zaman, Forhad & Guerrero, Josep M., 2019. "Energy scheduling of community microgrid with battery cost using particle swarm optimisation," Applied Energy, Elsevier, vol. 254(C).
    15. Hentschel, Moritz & Ketter, Wolfgang & Collins, John, 2018. "Renewable energy cooperatives: Facilitating the energy transition at the Port of Rotterdam," Energy Policy, Elsevier, vol. 121(C), pages 61-69.
    16. Lüth, Alexandra & Zepter, Jan Martin & Crespo del Granado, Pedro & Egging, Ruud, 2018. "Local electricity market designs for peer-to-peer trading: The role of battery flexibility," Applied Energy, Elsevier, vol. 229(C), pages 1233-1243.
    17. Lu, Yuehong & Zhang, Xiao-Ping & Huang, Zhijia & Lu, Jinli & Wang, Dong, 2019. "Impact of introducing penalty-cost on optimal design of renewable energy systems for net zero energy buildings," Applied Energy, Elsevier, vol. 235(C), pages 106-116.
    18. Yamashiro, Ririka & Mori, Akihisa, 2023. "Combined third-party ownership and aggregation business model for the adoption of rooftop solar PV–battery systems: Implications from the case of Miyakojima Island, Japan," Energy Policy, Elsevier, vol. 173(C).
    19. Effenberger, Frank & Hilbert, Andreas, 2016. "Towards an energy information system architecture description for industrial manufacturers: Decomposition & allocation view," Energy, Elsevier, vol. 112(C), pages 599-605.
    20. Dinh, Huy Truong & Lee, Kyu-haeng & Kim, Daehee, 2022. "Supervised-learning-based hour-ahead demand response for a behavior-based home energy management system approximating MILP optimization," Applied Energy, Elsevier, vol. 321(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:eneeco:v:97:y:2021:i:c:s0140988320303741. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eneco .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.