IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v111y2017icp321-335.html
   My bibliography  Save this article

Pricing of emergency dynamic microgrid power service for distribution resilience enhancement

Author

Listed:
  • Shang, Duo (Rick)

Abstract

Extreme weather events can cause significant damage to power distribution grids, leading to extended power outages. Intentional islanding enables the use of distributed energy resources (DERs) to power critical loads and accelerate grid restoration. In this study, an innovative dynamic microgrid islanding scheme was investigated as a means of enhancing distribution grid resilience. If customers in a dynamic microgrid request emergency electricity services during an outage, the question of how the distribution system operator should price the DER emergency power service arises. To answer this question, an economic load dispatch model was implemented in a single-bid auction market to forecast the market-clearing price of electricity in the dynamic microgrid island. The results show that the cost of emergency service is impacted by the power supply and demand in the island. When the combined heat and power plant capacity of the dynamic microgrid exceeded the demand, the market-clearing price of electricity in the island could be even less than the on-grid electricity price during normal periods. Thus, the dynamic microgrid scheme provides a low-cost means of supplying end-users with emergency power.

Suggested Citation

  • Shang, Duo (Rick), 2017. "Pricing of emergency dynamic microgrid power service for distribution resilience enhancement," Energy Policy, Elsevier, vol. 111(C), pages 321-335.
    • Handle: RePEc:eee:enepol:v:111:y:2017:i:c:p:321-335
    DOI: 10.1016/j.enpol.2017.09.043
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421517306110
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2017.09.043?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. Shang, Duo (Rick) & Sun, Guodong, 2016. "Electricity-price arbitrage with plug-in hybrid electric vehicle: Gain or loss?," Energy Policy, Elsevier, vol. 95(C), pages 402-410.
    2. Bose, Ranjan Kumar & Shukla, Megha & Srivastava, Leena & Yaron, Gil, 2006. "Cost of unserved power in Karnataka, India," Energy Policy, Elsevier, vol. 34(12), pages 1434-1447, August.
    3. William Vickrey, 1971. "Responsive Pricing of Public Utility Services," Bell Journal of Economics, The RAND Corporation, vol. 2(1), pages 337-346, Spring.
    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. Hussain, Akhtar & Bui, Van-Hai & Kim, Hak-Man, 2019. "Microgrids as a resilience resource and strategies used by microgrids for enhancing resilience," Applied Energy, Elsevier, vol. 240(C), pages 56-72.
    2. Younes Zahraoui & Tarmo Korõtko & Argo Rosin & Hannes Agabus, 2023. "Market Mechanisms and Trading in Microgrid Local Electricity Markets: A Comprehensive Review," Energies, MDPI, vol. 16(5), pages 1-52, February.
    3. Wang, Yi & Rousis, Anastasios Oulis & Strbac, Goran, 2020. "On microgrids and resilience: A comprehensive review on modeling and operational strategies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 134(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. Fang, Debin & Wang, Pengyu, 2023. "Optimal real-time pricing and electricity package by retail electric providers based on social learning," Energy Economics, Elsevier, vol. 117(C).
    2. Grimm, Veronika & Schewe, Lars & Schmidt, Martin & Zöttl, Gregor, 2017. "Uniqueness of market equilibrium on a network: A peak-load pricing approach," European Journal of Operational Research, Elsevier, vol. 261(3), pages 971-983.
    3. Kim, Kyungah & Choi, Jihye & Lee, Jihee & Lee, Jongsu & Kim, Junghun, 2023. "Public preferences and increasing acceptance of time-varying electricity pricing for demand side management in South Korea," Energy Economics, Elsevier, vol. 119(C).
    4. Mark Howells & Brent Boehlert & Pablo César Benitez, 2021. "Potential Climate Change Risks to Meeting Zimbabwe’s NDC Goals and How to Become Resilient," Energies, MDPI, vol. 14(18), pages 1-26, September.
    5. Pascal Courty & Mario Pagliero, 2008. "Do Consumers Care about how Prices are Set?," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 15(1), pages 27-43.
    6. Kaplan, Jonathan D. & Howitt, Richard E. & Kroll, Stephan, 2012. "Private Provision of a Stochastic Common Property Resource," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124855, Agricultural and Applied Economics Association.
    7. Schlereth, Christian & Skiera, Bernd & Schulz, Fabian, 2018. "Why do consumers prefer static instead of dynamic pricing plans? An empirical study for a better understanding of the low preferences for time-variant pricing plans," European Journal of Operational Research, Elsevier, vol. 269(3), pages 1165-1179.
    8. Pascal Courty & Mario Pagliero, 2011. "Does responsive pricing smooth demand shocks?," Applied Economics, Taylor & Francis Journals, vol. 43(30), pages 4707-4721.
    9. Schwab, Julia & Sölch, Christian & Zöttl, Gregor, 2022. "Electric Vehicle Cost in 2035: The impact of market penetration and charging strategies," Energy Economics, Elsevier, vol. 114(C).
    10. Genc, Talat S., 2016. "Measuring demand responses to wholesale electricity prices using market power indices," Energy Economics, Elsevier, vol. 56(C), pages 247-260.
    11. Sandrine Mathy & Céline Guivarch, 2009. "Climate policies : what if emerging country baseline were not so optimistic? - a case study related to India," CIRED Working Papers halshs-00366276, HAL.
    12. Ghosh, Ranjan & Kathuria, Vinish, 2014. "The transaction costs driving captive power generation: Evidence from India," Energy Policy, Elsevier, vol. 75(C), pages 179-188.
    13. Matsukawa, Isamu, 2008. "The effects of average revenue regulation on electricity transmission investment and pricing," Energy Economics, Elsevier, vol. 30(3), pages 696-714, May.
    14. Faruqui, A. & Hajos, A. & Hledik, R.M. & Newell, S.A., 2010. "Fostering economic demand response in the Midwest ISO," Energy, Elsevier, vol. 35(4), pages 1544-1552.
    15. Timilsina, Govinda & Steinbuks, Jevgenijs, 2021. "Economic costs of electricity load shedding in Nepal," Renewable and Sustainable Energy Reviews, Elsevier, vol. 146(C).
    16. Courty, Pascal & Pagliero, Mario, 2010. "Price variation antagonism and firm pricing policies," Journal of Economic Behavior & Organization, Elsevier, vol. 75(2), pages 235-249, August.
    17. Lindsey, Robin, 2011. "State-dependent congestion pricing with reference-dependent preferences," Transportation Research Part B: Methodological, Elsevier, vol. 45(10), pages 1501-1526.
    18. Changqi Wu & Leonard K. Cheng, 2000. "Hong Kong's Business Regulation in Transition," NBER Chapters, in: Deregulation and Interdependence in the Asia-Pacific Region, pages 157-194, National Bureau of Economic Research, Inc.
    19. Welsch, M. & Howells, M. & Bazilian, M. & DeCarolis, J.F. & Hermann, S. & Rogner, H.H., 2012. "Modelling elements of Smart Grids – Enhancing the OSeMOSYS (Open Source Energy Modelling System) code," Energy, Elsevier, vol. 46(1), pages 337-350.
    20. Zhengwei Ma & Rui Xu & Chi Chen & Teng Wu, 2015. "Regulation Strategy of China's Petrol Market: Empirical Evidence from Beijing," Energy & Environment, , vol. 26(3), pages 335-347, April.

    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:enepol:v:111:y:2017:i:c:p:321-335. 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/enpol .

    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.