IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v137y2017icp715-728.html
   My bibliography  Save this article

Cost optimal sizing of smart buildings' energy system components considering changing end-consumer electricity markets

Author

Listed:
  • Wolisz, Henryk
  • Schütz, Thomas
  • Blanke, Tobias
  • Hagenkamp, Markus
  • Kohrn, Markus
  • Wesseling, Mark
  • Müller, Dirk

Abstract

Managing the electricity system becomes increasingly challenging, calling for modifications of the current electricity market. High fluctuations in power generation could make the introduction of dynamic end-consumer electricity pricing reasonable. Furthermore, the prediction of end-consumers’ power consumption would get easier when charging the maximum power capacity, instead of the consumed energy. Thus, this paper discusses the capability of smart buildings to cope with such market models and evaluates how the design of the electrical and thermal energy system of a modern German building is affected. Therefore, cost optimal sizing of the main supply system components is carried out based on a hybrid MILP and a heuristic optimization algorithm. The results indicate that local photovoltaic generation is beneficial in almost all market conditions, while except for the capacity market, batteries are only economical if prices decrease by more than 60%. The identified electricity price dynamics are too low to incentivize investments into load shifting capable supply or storage systems. Nevertheless, if an installed heat pump and the associated thermal storage have smart home capabilities, they support the maximization of PV self-consumption and reduce electricity cost.

Suggested Citation

  • Wolisz, Henryk & Schütz, Thomas & Blanke, Tobias & Hagenkamp, Markus & Kohrn, Markus & Wesseling, Mark & Müller, Dirk, 2017. "Cost optimal sizing of smart buildings' energy system components considering changing end-consumer electricity markets," Energy, Elsevier, vol. 137(C), pages 715-728.
    • Handle: RePEc:eee:energy:v:137:y:2017:i:c:p:715-728
    DOI: 10.1016/j.energy.2017.06.025
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544217310198
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2017.06.025?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. Le Dréau, J. & Heiselberg, P., 2016. "Energy flexibility of residential buildings using short term heat storage in the thermal mass," Energy, Elsevier, vol. 111(C), pages 991-1002.
    2. Li, Xiao Hui & Hong, Seung Ho, 2014. "User-expected price-based demand response algorithm for a home-to-grid system," Energy, Elsevier, vol. 64(C), pages 437-449.
    3. Athari, M.H. & Ardehali, M.M., 2016. "Operational performance of energy storage as function of electricity prices for on-grid hybrid renewable energy system by optimized fuzzy logic controller," Renewable Energy, Elsevier, vol. 85(C), pages 890-902.
    4. Wakui, Tetsuya & Kawayoshi, Hiroki & Yokoyama, Ryohei, 2016. "Optimal structural design of residential power and heat supply devices in consideration of operational and capital recovery constraints," Applied Energy, Elsevier, vol. 163(C), pages 118-133.
    5. Lund, H. & Möller, B. & Mathiesen, B.V. & Dyrelund, A., 2010. "The role of district heating in future renewable energy systems," Energy, Elsevier, vol. 35(3), pages 1381-1390.
    6. Laws, Nicholas D. & Epps, Brenden P. & Peterson, Steven O. & Laser, Mark S. & Wanjiru, G. Kamau, 2017. "On the utility death spiral and the impact of utility rate structures on the adoption of residential solar photovoltaics and energy storage," Applied Energy, Elsevier, vol. 185(P1), pages 627-641.
    7. Darghouth, Naïm R. & Wiser, Ryan H. & Barbose, Galen & Mills, Andrew D., 2016. "Net metering and market feedback loops: Exploring the impact of retail rate design on distributed PV deployment," Applied Energy, Elsevier, vol. 162(C), pages 713-722.
    8. Frondel, Manuel & Ritter, Nolan & Schmidt, Christoph M. & Vance, Colin, 2010. "Economic impacts from the promotion of renewable energy technologies: The German experience," Energy Policy, Elsevier, vol. 38(8), pages 4048-4056, August.
    9. Öztopal, Ahmet & Şahin, Ahmet D & Akgün, Nezihe & Şen, Zekai, 2000. "On the regional wind energy potential of Turkey," Energy, Elsevier, vol. 25(2), pages 189-200.
    10. Boßmann, T. & Staffell, I., 2015. "The shape of future electricity demand: Exploring load curves in 2050s Germany and Britain," Energy, Elsevier, vol. 90(P2), pages 1317-1333.
    11. Ren, Hongbo & Gao, Weijun & Ruan, Yingjun, 2009. "Economic optimization and sensitivity analysis of photovoltaic system in residential buildings," Renewable Energy, Elsevier, vol. 34(3), pages 883-889.
    12. Bower, John & Bunn, Derek W. & Wattendrup, Claus, 2001. "A model-based analysis of strategic consolidation in the German electricity industry," Energy Policy, Elsevier, vol. 29(12), pages 987-1005, October.
    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. Talavera, D.L. & Muñoz-Rodriguez, F.J. & Jimenez-Castillo, G. & Rus-Casas, C., 2019. "A new approach to sizing the photovoltaic generator in self-consumption systems based on cost–competitiveness, maximizing direct self-consumption," Renewable Energy, Elsevier, vol. 130(C), pages 1021-1035.
    2. Coppitters, Diederik & De Paepe, Ward & Contino, Francesco, 2021. "Robust design optimization of a photovoltaic-battery-heat pump system with thermal storage under aleatory and epistemic uncertainty," Energy, Elsevier, vol. 229(C).
    3. Efkarpidis, Nikolaos A. & Vomva, Styliani A. & Christoforidis, Georgios C. & Papagiannis, Grigoris K., 2022. "Optimal day-to-day scheduling of multiple energy assets in residential buildings equipped with variable-speed heat pumps," Applied Energy, Elsevier, vol. 312(C).
    4. Gomez-Gonzalez, M. & Hernandez, J.C. & Vera, D. & Jurado, F., 2020. "Optimal sizing and power schedule in PV household-prosumers for improving PV self-consumption and providing frequency containment reserve," Energy, Elsevier, vol. 191(C).
    5. Wakui, Tetsuya & Hashiguchi, Moe & Yokoyama, Ryohei, 2021. "Structural design of distributed energy networks by a hierarchical combination of variable- and constraint-based decomposition methods," Energy, Elsevier, vol. 224(C).
    6. Khezri, Rahmat & Mahmoudi, Amin & Aki, Hirohisa, 2022. "Optimal planning of solar photovoltaic and battery storage systems for grid-connected residential sector: Review, challenges and new perspectives," Renewable and Sustainable Energy Reviews, Elsevier, vol. 153(C).
    7. Wakui, Tetsuya & Hashiguchi, Moe & Sawada, Kento & Yokoyama, Ryohei, 2019. "Two-stage design optimization based on artificial immune system and mixed-integer linear programming for energy supply networks," Energy, Elsevier, vol. 170(C), pages 1228-1248.
    8. Kohlhepp, Peter & Harb, Hassan & Wolisz, Henryk & Waczowicz, Simon & Müller, Dirk & Hagenmeyer, Veit, 2019. "Large-scale grid integration of residential thermal energy storages as demand-side flexibility resource: A review of international field studies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 101(C), pages 527-547.
    9. Urban, Kristof L. & Scheller, Fabian & Bruckner, Thomas, 2021. "Suitability assessment of models in the industrial energy system design," Renewable and Sustainable Energy Reviews, Elsevier, vol. 137(C).
    10. Wakui, Tetsuya & Sawada, Kento & Yokoyama, Ryohei & Aki, Hirohisa, 2019. "Predictive management for energy supply networks using photovoltaics, heat pumps, and battery by two-stage stochastic programming and rule-based control," Energy, Elsevier, vol. 179(C), pages 1302-1319.
    11. Fernando Salinas-Herrera & Ali Moeini & Innocent Kamwa, 2022. "Survey of Simulation Tools to Assess Techno-Economic Benefits of Smart Grid Technology in Integrated T&D Systems," Sustainability, MDPI, vol. 14(13), pages 1-36, July.
    12. Schütz, Thomas & Schraven, Markus Hans & Remy, Sebastian & Granacher, Julia & Kemetmüller, Dominik & Fuchs, Marcus & Müller, Dirk, 2017. "Optimal design of energy conversion units for residential buildings considering German market conditions," Energy, Elsevier, vol. 139(C), pages 895-915.
    13. Troitzsch, Sebastian & Sreepathi, Bhargava Krishna & Huynh, Thanh Phong & Moine, Aurelie & Hanif, Sarmad & Fonseca, Jimeno & Hamacher, Thomas, 2020. "Optimal electric-distribution-grid planning considering the demand-side flexibility of thermal building systems for a test case in Singapore," Applied Energy, Elsevier, vol. 273(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. Golmohamadi, Hessam & Larsen, Kim Guldstrand & Jensen, Peter Gjøl & Hasrat, Imran Riaz, 2022. "Integration of flexibility potentials of district heating systems into electricity markets: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 159(C).
    2. Claudia Gunther & Wolf-Peter Schill & Alexander Zerrahn, 2019. "Prosumage of solar electricity: tariff design, capacity investments, and power system effects," Papers 1907.09855, arXiv.org.
    3. Günther, Claudia & Schill, Wolf-Peter & Zerrahn, Alexander, 2021. "Prosumage of solar electricity: Tariff design, capacity investments, and power sector effects," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 152.
    4. Moncada, J.A. & Tao, Z. & Valkering, P. & Meinke-Hubeny, F. & Delarue, E., 2021. "Influence of distribution tariff structures and peer effects on the adoption of distributed energy resources," Applied Energy, Elsevier, vol. 298(C).
    5. Miguel Manuel de Villena & Raphael Fonteneau & Axel Gautier & Damien Ernst, 2019. "Evaluating the Evolution of Distribution Networks under Different Regulatory Frameworks with Multi-Agent Modelling," Energies, MDPI, vol. 12(7), pages 1-15, March.
    6. Schwarz, Marius & Auzépy, Quentin & Knoeri, Christof, 2020. "Can electricity pricing leverage electric vehicles and battery storage to integrate high shares of solar photovoltaics?," Applied Energy, Elsevier, vol. 277(C).
    7. Sam Wilkinson & Michele John & Gregory M. Morrison, 2021. "Rooftop PV and the Renewable Energy Transition; a Review of Driving Forces and Analytical Frameworks," Sustainability, MDPI, vol. 13(10), pages 1-25, May.
    8. Gao, Datong & Kwan, Trevor Hocksun & Hu, Maobin & Pei, Gang, 2022. "The energy, exergy, and techno-economic analysis of a solar seasonal residual energy utilization system," Energy, Elsevier, vol. 248(C).
    9. Johra, Hicham & Filonenko, Konstantin & Heiselberg, Per & Veje, Christian & Dall’Olio, Stefano & Engelbrecht, Kurt & Bahl, Christian, 2019. "Integration of a magnetocaloric heat pump in an energy flexible residential building," Renewable Energy, Elsevier, vol. 136(C), pages 115-126.
    10. Venkatraman, Athindra & Thatte, Anupam A. & Xie, Le, 2021. "A smart meter data-driven distribution utility rate model for networks with prosumers," Utilities Policy, Elsevier, vol. 70(C).
    11. Bloess, Andreas & Schill, Wolf-Peter & Zerrahn, Alexander, 2018. "Power-to-heat for renewable energy integration: A review of technologies, modeling approaches, and flexibility potentials," Applied Energy, Elsevier, vol. 212(C), pages 1611-1626.
    12. Aoun, Nadine & Bavière, Roland & Vallée, Mathieu & Aurousseau, Antoine & Sandou, Guillaume, 2019. "Modelling and flexible predictive control of buildings space-heating demand in district heating systems," Energy, Elsevier, vol. 188(C).
    13. Ahmed S. Alahmed & Lang Tong, 2021. "On Net Energy Metering X: Optimal Prosumer Decisions, Social Welfare, and Cross-Subsidies," Papers 2109.09977, arXiv.org, revised Jan 2022.
    14. Bloess, Andreas & Schill, Wolf-Peter & Zerrahn, Alexander, 2018. "Power-to-heat for renewable energy integration: A review of technologies, modeling approaches, and flexibility potentials," Applied Energy, Elsevier, vol. 212(C), pages 1611-1626.
    15. Carvallo, Juan Pablo & Zhang, Nan & Murphy, Sean P. & Leibowicz, Benjamin D. & Larsen, Peter H., 2020. "The economic value of a centralized approach to distributed resource investment and operation," Applied Energy, Elsevier, vol. 269(C).
    16. Say, Kelvin & John, Michele & Dargaville, Roger & Wills, Raymond T., 2018. "The coming disruption: The movement towards the customer renewable energy transition," Energy Policy, Elsevier, vol. 123(C), pages 737-748.
    17. Solano, J.C. & Brito, M.C. & Caamaño-Martín, E., 2018. "Impact of fixed charges on the viability of self-consumption photovoltaics," Energy Policy, Elsevier, vol. 122(C), pages 322-331.
    18. Heinen, Steve & Turner, William & Cradden, Lucy & McDermott, Frank & O'Malley, Mark, 2017. "Electrification of residential space heating considering coincidental weather events and building thermal inertia: A system-wide planning analysis," Energy, Elsevier, vol. 127(C), pages 136-154.
    19. Perera, A.T.D. & Nik, Vahid M. & Wickramasinghe, P.U. & Scartezzini, Jean-Louis, 2019. "Redefining energy system flexibility for distributed energy system design," Applied Energy, Elsevier, vol. 253(C), pages 1-1.
    20. Ali Saberi Derakhtenjani & Andreas K. Athienitis, 2021. "Model Predictive Control Strategies to Activate the Energy Flexibility for Zones with Hydronic Radiant Systems," Energies, MDPI, vol. 14(4), pages 1-19, February.

    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:energy:v:137:y:2017:i:c:p:715-728. 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.journals.elsevier.com/energy .

    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.