IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v184y2019icp165-179.html
   My bibliography  Save this article

A transactive energy modelling and assessment framework for demand response business cases in smart distributed multi-energy systems

Author

Listed:
  • Good, Nicholas
  • Martínez Ceseña, Eduardo A.
  • Heltorp, Christopher
  • Mancarella, Pierluigi

Abstract

The energy trilemma, together with energy system liberalisation and development of smart grid technologies, are increasing interest in and the potential of distributed multi-energy systems (DMES), for instance from districts or communities, to provide demand response (DR). However modelling and assessment of such systems is not straightforward given the complex physical and commercial aspects, including the effect of aggregation and relationships between retailers/aggregators and the districts in which DR resources are situated. Given this motivation, this paper introduces a novel and powerful ‘transactive energy’ modelling and assessment framework for DMES. The framework includes: a DMES stochastic optimisation model with a flexible and scalable approach for modelling aggregation useful for both technical and economic analysis; a modular and extensible value mapping methodology for identifying transactive energy price signals and cash flows for different energy system actors; a profit sharing model; and an economic assessment model based on fundamental cost-benefit analysis. The framework is illustrated through analysis of DR business cases on a real district in France. Possible extensions of the transactive energy value mapping approach to upstream and downstream activities and to different energy sectors, as well as the advantages of using the framework in regulatory and policy design, are discussed.

Suggested Citation

  • Good, Nicholas & Martínez Ceseña, Eduardo A. & Heltorp, Christopher & Mancarella, Pierluigi, 2019. "A transactive energy modelling and assessment framework for demand response business cases in smart distributed multi-energy systems," Energy, Elsevier, vol. 184(C), pages 165-179.
    • Handle: RePEc:eee:energy:v:184:y:2019:i:c:p:165-179
    DOI: 10.1016/j.energy.2018.02.089
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544218303177
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2018.02.089?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. Mancarella, Pierluigi, 2014. "MES (multi-energy systems): An overview of concepts and evaluation models," Energy, Elsevier, vol. 65(C), pages 1-17.
    2. Capuder, Tomislav & Mancarella, Pierluigi, 2014. "Techno-economic and environmental modelling and optimization of flexible distributed multi-generation options," Energy, Elsevier, vol. 71(C), pages 516-533.
    3. Sauter, Raphael & Watson, Jim, 2007. "Strategies for the deployment of micro-generation: Implications for social acceptance," Energy Policy, Elsevier, vol. 35(5), pages 2770-2779, May.
    4. Hall, Stephen & Roelich, Katy, 2016. "Business model innovation in electricity supply markets: The role of complex value in the United Kingdom," Energy Policy, Elsevier, vol. 92(C), pages 286-298.
    5. Watson, Jim, 2004. "Co-provision in sustainable energy systems: the case of micro-generation," Energy Policy, Elsevier, vol. 32(17), pages 1981-1990, November.
    6. Eid, Cherrelle & Bollinger, L. Andrew & Koirala, Binod & Scholten, Daniel & Facchinetti, Emanuele & Lilliestam, Johan & Hakvoort, Rudi, 2016. "Market integration of local energy systems: Is local energy management compatible with European regulation for retail competition?," Energy, Elsevier, vol. 114(C), pages 913-922.
    7. Martínez Ceseña, Eduardo A. & Good, Nicholas & Mancarella, Pierluigi, 2015. "Electrical network capacity support from demand side response: Techno-economic assessment of potential business cases for small commercial and residential end-users," Energy Policy, Elsevier, vol. 82(C), pages 222-232.
    8. Qi, Wei & Shen, Bo & Zhang, Hongcai & Shen, Zuo-Jun Max, 2017. "Sharing demand-side energy resources - A conceptual design," Energy, Elsevier, vol. 135(C), pages 455-465.
    9. Good, Nicholas & Ellis, Keith A. & Mancarella, Pierluigi, 2017. "Review and classification of barriers and enablers of demand response in the smart grid," Renewable and Sustainable Energy Reviews, Elsevier, vol. 72(C), pages 57-72.
    10. Moreno, Rodrigo & Moreira, Roberto & Strbac, Goran, 2015. "A MILP model for optimising multi-service portfolios of distributed energy storage," Applied Energy, Elsevier, vol. 137(C), pages 554-566.
    11. Navarro-Espinosa, Alejandro & Mancarella, Pierluigi, 2014. "Probabilistic modeling and assessment of the impact of electric heat pumps on low voltage distribution networks," Applied Energy, Elsevier, vol. 127(C), pages 249-266.
    12. Pavić, Ivan & Capuder, Tomislav & Kuzle, Igor, 2016. "Low carbon technologies as providers of operational flexibility in future power systems," Applied Energy, Elsevier, vol. 168(C), pages 724-738.
    13. Nolan, Sheila & O’Malley, Mark, 2015. "Challenges and barriers to demand response deployment and evaluation," Applied Energy, Elsevier, vol. 152(C), pages 1-10.
    14. Good, Nicholas & Martínez Ceseña, Eduardo A. & Zhang, Lingxi & Mancarella, Pierluigi, 2016. "Techno-economic and business case assessment of low carbon technologies in distributed multi-energy systems," Applied Energy, Elsevier, vol. 167(C), pages 158-172.
    15. Liu, Xuezhi & Mancarella, Pierluigi, 2016. "Modelling, assessment and Sankey diagrams of integrated electricity-heat-gas networks in multi-vector district energy systems," Applied Energy, Elsevier, vol. 167(C), pages 336-352.
    16. Drysdale, Brian & Wu, Jianzhong & Jenkins, Nick, 2015. "Flexible demand in the GB domestic electricity sector in 2030," Applied Energy, Elsevier, vol. 139(C), pages 281-290.
    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. Pinto, Edwin S. & Gronier, Timothé & Franquet, Erwin & Serra, Luis M., 2023. "Opportunities and economic assessment for a third-party delivering electricity, heat and cold to residential buildings," Energy, Elsevier, vol. 272(C).
    2. Guerrero, Jaysson & Gebbran, Daniel & Mhanna, Sleiman & Chapman, Archie C. & Verbič, Gregor, 2020. "Towards a transactive energy system for integration of distributed energy resources: Home energy management, distributed optimal power flow, and peer-to-peer energy trading," Renewable and Sustainable Energy Reviews, Elsevier, vol. 132(C).
    3. Maurer, Jona & Tschuch, Nicolai & Krebs, Stefan & Bhattacharya, Kankar & Cañizares, Claudio & Hohmann, Sören, 2023. "Toward transactive control of coupled electric power and district heating networks," Applied Energy, Elsevier, vol. 332(C).
    4. Guelpa, Elisa & Bischi, Aldo & Verda, Vittorio & Chertkov, Michael & Lund, Henrik, 2019. "Towards future infrastructures for sustainable multi-energy systems: A review," Energy, Elsevier, vol. 184(C), pages 2-21.
    5. Schwidtal, J.M. & Piccini, P. & Troncia, M. & Chitchyan, R. & Montakhabi, M. & Francis, C. & Gorbatcheva, A. & Capper, T. & Mustafa, M.A. & Andoni, M. & Robu, V. & Bahloul, M. & Scott, I.J. & Mbavarir, 2023. "Emerging business models in local energy markets: A systematic review of peer-to-peer, community self-consumption, and transactive energy models," Renewable and Sustainable Energy Reviews, Elsevier, vol. 179(C).
    6. Wagner, Lukas Peter & Reinpold, Lasse Matthias & Kilthau, Maximilian & Fay, Alexander, 2023. "A systematic review of modeling approaches for flexible energy resources," Renewable and Sustainable Energy Reviews, Elsevier, vol. 184(C).
    7. Zhu, Dafeng & Yang, Bo & Liu, Qi & Ma, Kai & Zhu, Shanying & Ma, Chengbin & Guan, Xinping, 2020. "Energy trading in microgrids for synergies among electricity, hydrogen and heat networks," Applied Energy, Elsevier, vol. 272(C).
    8. Neeraj Gupta & B Rajanarayan Prusty & Omar Alrumayh & Abdulaziz Almutairi & Talal Alharbi, 2022. "The Role of Transactive Energy in the Future Energy Industry: A Critical Review," Energies, MDPI, vol. 15(21), pages 1-24, October.
    9. Jun Dong & Xihao Dou & Dongran Liu & Aruhan Bao & Dongxue Wang & Yunzhou Zhang & Peng Jiang, 2023. "Benefit Sharing of Power Transactions in Distributed Energy Systems with Multiple Participants," Sustainability, MDPI, vol. 15(11), pages 1-23, June.
    10. Seyedhossein, Seyed Saeed & Moeini-Aghtaie, Moein, 2022. "Risk management framework of peer-to-peer electricity markets," Energy, Elsevier, vol. 261(PB).
    11. Capper, Timothy & Gorbatcheva, Anna & Mustafa, Mustafa A. & Bahloul, Mohamed & Schwidtal, Jan Marc & Chitchyan, Ruzanna & Andoni, Merlinda & Robu, Valentin & Montakhabi, Mehdi & Scott, Ian J. & Franci, 2022. "Peer-to-peer, community self-consumption, and transactive energy: A systematic literature review of local energy market models," Renewable and Sustainable Energy Reviews, Elsevier, vol. 162(C).
    12. Fuentes González, Fabián & Webb, Janette & Sharmina, Maria & Hannon, Matthew & Pappas, Dimitrios & Tingey, Margaret, 2021. "Characterising a local energy business sector in the United Kingdom: Participants, revenue sources, and estimates of localism and smartness," Energy, Elsevier, vol. 223(C).
    13. Montero-Sousa, Juan Aurelio & Aláiz-Moretón, Héctor & Quintián, Héctor & González-Ayuso, Tomás & Novais, Paulo & Calvo-Rolle, José Luis, 2020. "Hydrogen consumption prediction of a fuel cell based system with a hybrid intelligent approach," Energy, Elsevier, vol. 205(C).
    14. Çiçek, Alper & Şengör, İbrahim & Erenoğlu, Ayşe Kübra & Erdinç, Ozan, 2020. "Decision making mechanism for a smart neighborhood fed by multi-energy systems considering demand response," Energy, Elsevier, vol. 208(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. Cruz, Marco R.M. & Fitiwi, Desta Z. & Santos, Sérgio F. & Catalão, João P.S., 2018. "A comprehensive survey of flexibility options for supporting the low-carbon energy future," Renewable and Sustainable Energy Reviews, Elsevier, vol. 97(C), pages 338-353.
    2. Good, Nicholas & Ellis, Keith A. & Mancarella, Pierluigi, 2017. "Review and classification of barriers and enablers of demand response in the smart grid," Renewable and Sustainable Energy Reviews, Elsevier, vol. 72(C), pages 57-72.
    3. Carvallo, Claudio & Jalil-Vega, Francisca & Moreno, Rodrigo, 2023. "A multi-energy multi-microgrid system planning model for decarbonisation and decontamination of isolated systems," Applied Energy, Elsevier, vol. 343(C).
    4. Moghaddam, Iman Gerami & Saniei, Mohsen & Mashhour, Elaheh, 2016. "A comprehensive model for self-scheduling an energy hub to supply cooling, heating and electrical demands of a building," Energy, Elsevier, vol. 94(C), pages 157-170.
    5. Ayman Esmat & Julio Usaola & María Ángeles Moreno, 2018. "Distribution-Level Flexibility Market for Congestion Management," Energies, MDPI, vol. 11(5), pages 1-24, April.
    6. Holjevac, Ninoslav & Capuder, Tomislav & Zhang, Ning & Kuzle, Igor & Kang, Chongqing, 2017. "Corrective receding horizon scheduling of flexible distributed multi-energy microgrids," Applied Energy, Elsevier, vol. 207(C), pages 176-194.
    7. Wang, Han & Riaz, Shariq & Mancarella, Pierluigi, 2020. "Integrated techno-economic modeling, flexibility analysis, and business case assessment of an urban virtual power plant with multi-market co-optimization," Applied Energy, Elsevier, vol. 259(C).
    8. Zhou, Yutian & Panteli, Mathaios & Moreno, Rodrigo & Mancarella, Pierluigi, 2018. "System-level assessment of reliability and resilience provision from microgrids," Applied Energy, Elsevier, vol. 230(C), pages 374-392.
    9. Fuentes González, Fabián & Webb, Janette & Sharmina, Maria & Hannon, Matthew & Pappas, Dimitrios & Tingey, Margaret, 2021. "Characterising a local energy business sector in the United Kingdom: Participants, revenue sources, and estimates of localism and smartness," Energy, Elsevier, vol. 223(C).
    10. Manfren, Massimiliano & Nastasi, Benedetto & Groppi, Daniele & Astiaso Garcia, Davide, 2020. "Open data and energy analytics - An analysis of essential information for energy system planning, design and operation," Energy, Elsevier, vol. 213(C).
    11. Martínez Ceseña, Eduardo A. & Good, Nicholas & Syrri, Angeliki L.A. & Mancarella, Pierluigi, 2018. "Techno-economic and business case assessment of multi-energy microgrids with co-optimization of energy, reserve and reliability services," Applied Energy, Elsevier, vol. 210(C), pages 896-913.
    12. Dominković, D.F. & Bačeković, I. & Sveinbjörnsson, D. & Pedersen, A.S. & Krajačić, G., 2017. "On the way towards smart energy supply in cities: The impact of interconnecting geographically distributed district heating grids on the energy system," Energy, Elsevier, vol. 137(C), pages 941-960.
    13. Østergaard, P.A. & Lund, H. & Thellufsen, J.Z. & Sorknæs, P. & Mathiesen, B.V., 2022. "Review and validation of EnergyPLAN," Renewable and Sustainable Energy Reviews, Elsevier, vol. 168(C).
    14. Matija Kostelac & Lin Herenčić & Tomislav Capuder, 2022. "Planning and Operational Aspects of Individual and Clustered Multi-Energy Microgrid Options," Energies, MDPI, vol. 15(4), pages 1-17, February.
    15. Laura Canale & Anna Rita Di Fazio & Mario Russo & Andrea Frattolillo & Marco Dell’Isola, 2021. "An Overview on Functional Integration of Hybrid Renewable Energy Systems in Multi-Energy Buildings," Energies, MDPI, vol. 14(4), pages 1-33, February.
    16. Provance, Mike & Donnelly, Richard G. & Carayannis, Elias G., 2011. "Institutional influences on business model choice by new ventures in the microgenerated energy industry," Energy Policy, Elsevier, vol. 39(9), pages 5630-5637, September.
    17. Adil, Ali M. & Ko, Yekang, 2016. "Socio-technical evolution of Decentralized Energy Systems: A critical review and implications for urban planning and policy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 57(C), pages 1025-1037.
    18. Patrick Sunday Onen & Geev Mokryani & Rana H. A. Zubo, 2022. "Planning of Multi-Vector Energy Systems with High Penetration of Renewable Energy Source: A Comprehensive Review," Energies, MDPI, vol. 15(15), pages 1-25, August.
    19. Marko, Wolfgang A., 2014. "Small-scale, Big Impact – Utilities’ New Business Models for “Energiewende”," Die Unternehmung - Swiss Journal of Business Research and Practice, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 68(3), pages 201-220.
    20. Pina, Eduardo A. & Lozano, Miguel A. & Serra, Luis M., 2018. "Thermoeconomic cost allocation in simple trigeneration systems including thermal energy storage," Energy, Elsevier, vol. 153(C), pages 170-184.

    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:184:y:2019:i:c:p:165-179. 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.