IDEAS home Printed from https://ideas.repec.org/a/eee/rensus/v113y2019ic33.html
   My bibliography  Save this article

Win-win possibilities through capacity tariffs and battery storage in microgrids

Author

Listed:
  • Milis, Kevin
  • Peremans, Herbert
  • Springael, Johan
  • Van Passel, Steven

Abstract

This paper investigates the impact of capacity tariff design on microgrids. While the possible benefits for utilities of capacity tariffs are well researched, comparatively little work has been done investigating the effects of capacity pricing on prosumers. Through simulating a grid connected microgrid and solving the day-ahead dispatch problem for a calendar year, we show that a well-designed capacity tariff will not only smooth out demand profiles, but could also lead to less erratic charge/discharge cycles in a real-time pricing scenario, lessening battery degradation. These results show that a properly designed capacity tariff has the potential to be beneficial for both the utilities as well as the battery-owning prosumer. Furthermore, we propose a new, heuristic approach to solve the day-ahead economic dispatch problem, which we prove to be effective and efficient. Additionally, we demonstrate that our novel approach does not impose mathematical restrictions such as continuous differentiability of the objective function. We show that the proposed capacity tariff achieves the stated aim of promoting battery storage uptake and that our novel method allows for compression and shorter run times.

Suggested Citation

  • Milis, Kevin & Peremans, Herbert & Springael, Johan & Van Passel, Steven, 2019. "Win-win possibilities through capacity tariffs and battery storage in microgrids," Renewable and Sustainable Energy Reviews, Elsevier, vol. 113(C), pages 1-1.
    • Handle: RePEc:eee:rensus:v:113:y:2019:i:c:33
    DOI: 10.1016/j.rser.2019.06.045
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1364032119304381
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.rser.2019.06.045?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. United Nations UN, 2015. "Transforming our World: the 2030 Agenda for Sustainable Development," Working Papers id:7559, eSocialSciences.
    2. Gruchy, Steven R. & Grebner, Donald L. & Munn, Ian A. & Joshi, Omkar & Hussain, Anwar, 2012. "An assessment of nonindustrial private forest landowner willingness to harvest woody biomass in support of bioenergy production in Mississippi: A contingent rating approach," Forest Policy and Economics, Elsevier, vol. 15(C), pages 140-145.
    3. Popp, J. & Lakner, Z. & Harangi-Rákos, M. & Fári, M., 2014. "The effect of bioenergy expansion: Food, energy, and environment," Renewable and Sustainable Energy Reviews, Elsevier, vol. 32(C), pages 559-578.
    4. Joshi, Omkar & Grebner, Donald L. & Hussain, Anwar & Grado, Stephen C., 2013. "Landowner knowledge and willingness to supply woody biomass for wood-based bioenergy: Sample selection approach," Journal of Forest Economics, Elsevier, vol. 19(2), pages 97-109.
    5. Dale, Virginia H. & Kline, Keith L. & Buford, Marilyn A. & Volk, Timothy A. & Tattersall Smith, C. & Stupak, Inge, 2016. "Incorporating bioenergy into sustainable landscape designs," Renewable and Sustainable Energy Reviews, Elsevier, vol. 56(C), pages 1158-1171.
    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. Zhou, Yuekuan & Zheng, Siqian & Hensen, Jan L.M., 2024. "Machine learning-based digital district heating/cooling with renewable integrations and advanced low-carbon transition," Renewable and Sustainable Energy Reviews, Elsevier, vol. 199(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. Monteleone, Massimo & Cammerino, Anna Rita Bernadette & Libutti, Angela, 2018. "Agricultural “greening” and cropland diversification trends: Potential contribution of agroenergy crops in Capitanata (South Italy)," Land Use Policy, Elsevier, vol. 70(C), pages 591-600.
    2. Dulys, Elena & Swinton, Scott & Klammer, Sarah, 2016. "What Drives the Potential Supply of Timber Residues from Private Lands?," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 242363, Agricultural and Applied Economics Association.
    3. Arnaldo Walter & Joaquim Seabra & Jansle Rocha & Marjorie Guarenghi & Nathália Vieira & Desirèe Damame & João Luís Santos, 2021. "Spatially Explicit Assessment of Suitable Conditions for the Sustainable Production of Aviation Fuels in Brazil," Land, MDPI, vol. 10(7), pages 1-22, July.
    4. repec:ags:aaea16:235752 is not listed on IDEAS
    5. Omoyemeh J. Ile & Hanna McCormick & Sheila Skrabacz & Shamik Bhattacharya & Maricar Aguilos & Henrique D. R. Carvalho & Joshua Idassi & Justin Baker & Joshua L. Heitman & John S. King, 2022. "Integrating Short Rotation Woody Crops into Conventional Agricultural Practices in the Southeastern United States: A Review," Land, MDPI, vol. 12(1), pages 1-26, December.
    6. Aguilar, Francisco X. & Daniel, Marissa “Jo” & Cai, Zhen, 2014. "Family-forest Owners’ Willingness to Harvest Sawlogs and Woody Biomass: The Effect of Price on Social Availability," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 43(2), pages 1-21, August.
    7. Keith L. Kline & Virginia H. Dale & Erin Rose & Bruce Tonn, 2021. "Effects of Production of Woody Pellets in the Southeastern United States on the Sustainable Development Goals," Sustainability, MDPI, vol. 13(2), pages 1-19, January.
    8. Ugarte Lucas, Paula & Gamborg, Christian & Lund, Thomas Bøker, 2022. "Sustainability concerns are key to understanding public attitudes toward woody biomass for energy: A survey of Danish citizens," Renewable Energy, Elsevier, vol. 194(C), pages 181-194.
    9. Králík, T. & Knápek, J. & Vávrová, K. & Outrata, D. & Romportl, D. & Horák, M. & Jandera, J., 2023. "Ecosystem services and economic competitiveness of perennial energy crops in the modelling of biomass potential – A case study of the Czech Republic," Renewable and Sustainable Energy Reviews, Elsevier, vol. 173(C).
    10. Ali, Babkir & Hedayati-Dezfooli, M. & Gamil, Ahmed, 2023. "Sustainability assessment of alternative energy power generation pathways through the development of impact indicators for water, land, GHG emissions, and cost," Renewable and Sustainable Energy Reviews, Elsevier, vol. 171(C).
    11. Díaz González, Carlos A. & Pacheco Sandoval, Leonardo, 2020. "Sustainability aspects of biomass gasification systems for small power generation," Renewable and Sustainable Energy Reviews, Elsevier, vol. 134(C).
    12. Mutandwa, Edward & Grala, Robert K. & Petrolia, Daniel R., 2019. "Estimates of willingness to accept compensation to manage pine stands for ecosystem services," Forest Policy and Economics, Elsevier, vol. 102(C), pages 75-85.
    13. Paulina Schiappacasse & Bernhard Müller & Le Thuy Linh, 2019. "Towards Responsible Aggregate Mining in Vietnam," Resources, MDPI, vol. 8(3), pages 1-15, August.
    14. Pina Puntillo, 2023. "Circular economy business models: Towards achieving sustainable development goals in the waste management sector—Empirical evidence and theoretical implications," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(2), pages 941-954, March.
    15. Schlör, Holger & Venghaus, Sandra & Hake, Jürgen-Friedrich, 2018. "The FEW-Nexus city index – Measuring urban resilience," Applied Energy, Elsevier, vol. 210(C), pages 382-392.
    16. Jean-Louis Combes & Alexandru Minea & Pegdéwendé Nestor Sawadogo, 2019. "Assessing the effects of combating illicit financial flows on domestic tax revenue mobilization in developing countries," Post-Print halshs-02315734, HAL.
    17. Nelson, Ewan & Warren, Peter, 2020. "UK transport decoupling: On track for clean growth in transport?," Transport Policy, Elsevier, vol. 90(C), pages 39-51.
    18. Ibrahim Ari & Muammer Koc, 2018. "Sustainable Financing for Sustainable Development: Understanding the Interrelations between Public Investment and Sovereign Debt," Sustainability, MDPI, vol. 10(11), pages 1-25, October.
    19. R. Ebrahimi & S. Choobchian & H. Farhadian & I. Goli & E. Farmandeh & H. Azadi, 2022. "Investigating the effect of vocational education and training on rural women’s empowerment," Palgrave Communications, Palgrave Macmillan, vol. 9(1), pages 1-11, December.
    20. Benjamin Nölting & Bettina König & Anne B. Zimmermann & Antonietta Di Giulio & Martina Schäfer & Flurina Schneider, 2022. "Dealing with the COVID-19 pandemic: an opportunity to reflect on sustainability research," Sustainability Nexus Forum, Springer, vol. 30(1), pages 11-27, December.
    21. Rashmi Jaipal, 2017. "Psychology at the Crossroads," Psychology and Developing Societies, , vol. 29(2), pages 125-159, September.

    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:rensus:v:113:y:2019:i:c:33. 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/wps/find/journaldescription.cws_home/600126/description#description .

    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.