IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v14y2021i14p4154-d591612.html
   My bibliography  Save this article

Behavioral Economics Optimized Renewable Power Grid: A Case Study of Household Energy Storage

Author

Listed:
  • Shengyu Tao

    (Department of Light Sources and Illuminating Engineering, Fudan University, Shanghai 200438, China
    Shanghai Engineering Research Center for Artificial Intelligence and Integrated Energy System, Fudan University, Shanghai 200433, China
    Institute for Six-Sector Economy, Fudan University, Shanghai 200433, China)

  • Yiqiang Zhang

    (Department of Light Sources and Illuminating Engineering, Fudan University, Shanghai 200438, China
    Shanghai Engineering Research Center for Artificial Intelligence and Integrated Energy System, Fudan University, Shanghai 200433, China)

  • Meng Yuan

    (Department of Light Sources and Illuminating Engineering, Fudan University, Shanghai 200438, China
    Shanghai Engineering Research Center for Artificial Intelligence and Integrated Energy System, Fudan University, Shanghai 200433, China)

  • Ruixiang Zhang

    (Department of Light Sources and Illuminating Engineering, Fudan University, Shanghai 200438, China
    Shanghai Engineering Research Center for Artificial Intelligence and Integrated Energy System, Fudan University, Shanghai 200433, China)

  • Zhongyan Xu

    (Department of Light Sources and Illuminating Engineering, Fudan University, Shanghai 200438, China
    Shanghai Engineering Research Center for Artificial Intelligence and Integrated Energy System, Fudan University, Shanghai 200433, China)

  • Yaojie Sun

    (Department of Light Sources and Illuminating Engineering, Fudan University, Shanghai 200438, China
    Shanghai Engineering Research Center for Artificial Intelligence and Integrated Energy System, Fudan University, Shanghai 200433, China
    Institute for Six-Sector Economy, Fudan University, Shanghai 200433, China)

Abstract

Power systems optimization is generally subject to the compromise between performance and cost. The 2021 Texas grid outage illustrates the worldwide dangers for the regional-centralized power grid, with comparable advantages to safety and flexibility for the distributed energy system. The storage of household batteries helps balance grid load and increase system stability and flexibility. However, household storage battery is still not widely used today because of its high costs. Currently, research on increasing household battery storage applicability is focused largely on optimizing economic strategies, such as configuration, dispatching and subsidy policies, which rely substantially more on technologies and financial perspectives. Consumers are not ‘rational’ individuals, and non-economic incentives can affect their decisions without raising prices. This paper consequently proposes to encourage users to acquire household battery storage to increase efficiency of power dispatching and economic advantages based on behavioral economics. In this paper, an empirical research builds upon the utility model of behavioral economics incentives and purchase willingness. Moreover, the multi-objective genetic algorithm is utilized to optimize the dispatching of household battery storage by using grid variance and user revenues as optimizing goals. The results of this paper show that the behavioral economics incentive improves intention to buy the household battery energy storage by 10.7% without raising subsidies. By improving the energy dispatching strategy, peak-load shifting performance and user revenues are improved by 4.2% and 10.6%, respectively.

Suggested Citation

  • Shengyu Tao & Yiqiang Zhang & Meng Yuan & Ruixiang Zhang & Zhongyan Xu & Yaojie Sun, 2021. "Behavioral Economics Optimized Renewable Power Grid: A Case Study of Household Energy Storage," Energies, MDPI, vol. 14(14), pages 1-17, July.
    • Handle: RePEc:gam:jeners:v:14:y:2021:i:14:p:4154-:d:591612
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/14/14/4154/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/14/14/4154/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hunt Allcott & Dmitry Taubinsky, 2015. "Evaluating Behaviorally Motivated Policy: Experimental Evidence from the Lightbulb Market," American Economic Review, American Economic Association, vol. 105(8), pages 2501-2538, August.
    2. Ibrahim Alsaidan & Abdulaziz Alanazi & Wenzhong Gao & Hongyu Wu & Amin Khodaei, 2017. "State-Of-The-Art in Microgrid-Integrated Distributed Energy Storage Sizing," Energies, MDPI, vol. 10(9), pages 1-14, September.
    3. Patrick Moriarty & Damon Honnery, 2020. "Feasibility of a 100% Global Renewable Energy System," Energies, MDPI, vol. 13(21), pages 1-16, October.
    4. Zhang, Yijie & Ma, Tao & Elia Campana, Pietro & Yamaguchi, Yohei & Dai, Yanjun, 2020. "A techno-economic sizing method for grid-connected household photovoltaic battery systems," Applied Energy, Elsevier, vol. 269(C).
    5. Dietrich, Andreas & Weber, Christoph, 2018. "What drives profitability of grid-connected residential PV storage systems? A closer look with focus on Germany," Energy Economics, Elsevier, vol. 74(C), pages 399-416.
    6. Nicholas Barberis, 2018. "Richard Thaler and the Rise of Behavioral Economics," Scandinavian Journal of Economics, Wiley Blackwell, vol. 120(3), pages 661-684, July.
    7. Holger C. Hesse & Michael Schimpe & Daniel Kucevic & Andreas Jossen, 2017. "Lithium-Ion Battery Storage for the Grid—A Review of Stationary Battery Storage System Design Tailored for Applications in Modern Power Grids," Energies, MDPI, vol. 10(12), pages 1-42, December.
    8. Paulo Rotella Junior & Luiz Célio Souza Rocha & Sandra Naomi Morioka & Ivan Bolis & Gianfranco Chicco & Andrea Mazza & Karel Janda, 2021. "Economic Analysis of the Investments in Battery Energy Storage Systems: Review and Current Perspectives," Energies, MDPI, vol. 14(9), pages 1-29, April.
    9. Corentin Jankowiak & Aggelos Zacharopoulos & Caterina Brandoni & Patrick Keatley & Paul MacArtain & Neil Hewitt, 2019. "The Role of Domestic Integrated Battery Energy Storage Systems for Electricity Network Performance Enhancement," Energies, MDPI, vol. 12(20), pages 1-27, October.
    10. Bryan Bollinger & Kenneth Gillingham, 2012. "Peer Effects in the Diffusion of Solar Photovoltaic Panels," Marketing Science, INFORMS, vol. 31(6), pages 900-912, November.
    11. Thomas Leonard, 2008. "Richard H. Thaler, Cass R. Sunstein, Nudge: Improving decisions about health, wealth, and happiness," Constitutional Political Economy, Springer, vol. 19(4), pages 356-360, December.
    12. Schopfer, S. & Tiefenbeck, V. & Staake, T., 2018. "Economic assessment of photovoltaic battery systems based on household load profiles," Applied Energy, Elsevier, vol. 223(C), pages 229-248.
    13. Korcaj, Liridon & Hahnel, Ulf J.J. & Spada, Hans, 2015. "Intentions to adopt photovoltaic systems depend on homeowners' expected personal gains and behavior of peers," Renewable Energy, Elsevier, vol. 75(C), pages 407-415.
    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. Talihati, Baligen & Tao, Shengyu & Fu, Shiyi & Zhang, Bowen & Fan, Hongtao & Li, Qifen & Lv, Xiaodong & Sun, Yaojie & Wang, Yu, 2024. "Energy storage sharing in residential communities with controllable loads for enhanced operational efficiency and profitability," Applied Energy, Elsevier, vol. 373(C).
    2. Nomihla Wandile Ndlela & Innocent Ewean Davidson & Katleho Moloi, 2023. "Power Planning for a Reliable Southern African Regional Grid," Energies, MDPI, vol. 16(3), pages 1-21, January.
    3. Ismail Marouani & Tawfik Guesmi & Badr M. Alshammari & Khalid Alqunun & Ahmed S. Alshammari & Saleh Albadran & Hsan Hadj Abdallah & Salem Rahmani, 2023. "Optimized FACTS Devices for Power System Enhancement: Applications and Solving Methods," Sustainability, MDPI, vol. 15(12), pages 1-58, June.
    4. Imaduddin Ahmed & Priti Parikh & Parfait Munezero & Graham Sianjase & D’Maris Coffman, 2023. "The impact of power outages on households in Zambia," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 40(3), pages 835-867, October.

    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. Nina Munzke & Felix Büchle & Anna Smith & Marc Hiller, 2021. "Influence of Efficiency, Aging and Charging Strategy on the Economic Viability and Dimensioning of Photovoltaic Home Storage Systems," Energies, MDPI, vol. 14(22), pages 1-46, November.
    2. Klein, Martin & Deissenroth, Marc, 2017. "When do households invest in solar photovoltaics? An application of prospect theory," Energy Policy, Elsevier, vol. 109(C), pages 270-278.
    3. Paul Simshauser & Tim Nelson & Joel Gilmore, 2022. "The sunshine state: implications from mass rooftop solar PV take-up rates in Queensland," Working Papers EPRG2219, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    4. Liu, Diyi & Qi, Suntong & Xu, Tiantong, 2023. "In the post-subsidy era: How to encourage mere consumers to become prosumers when subsidy reduced?," Energy Policy, Elsevier, vol. 174(C).
    5. Ma, Tao & Zhang, Yijie & Gu, Wenbo & Xiao, Gang & Yang, Hongxing & Wang, Shuxiao, 2022. "Strategy comparison and techno-economic evaluation of a grid-connected photovoltaic-battery system," Renewable Energy, Elsevier, vol. 197(C), pages 1049-1060.
    6. Sommerfeldt, Nelson & Lemoine, Ida & Madani, Hatef, 2022. "Hide and seek: The supply and demand of information for household solar photovoltaic investment," Energy Policy, Elsevier, vol. 161(C).
    7. Karjalainen, Sami & Ahvenniemi, Hannele, 2019. "Pleasure is the profit - The adoption of solar PV systems by households in Finland," Renewable Energy, Elsevier, vol. 133(C), pages 44-52.
    8. Lucas Deotti & Wanessa Guedes & Bruno Dias & Tiago Soares, 2020. "Technical and Economic Analysis of Battery Storage for Residential Solar Photovoltaic Systems in the Brazilian Regulatory Context," Energies, MDPI, vol. 13(24), pages 1-30, December.
    9. Fabian Scheller & Isabel Doser & Daniel Sloot & Russell McKenna & Thomas Bruckner, 2020. "Exploring the Role of Stakeholder Dynamics in Residential Photovoltaic Adoption Decisions: A Synthesis of the Literature," Energies, MDPI, vol. 13(23), pages 1-31, November.
    10. Curtius, Hans Christoph & Hille, Stefanie Lena & Berger, Christian & Hahnel, Ulf Joachim Jonas & Wüstenhagen, Rolf, 2018. "Shotgun or snowball approach? Accelerating the diffusion of rooftop solar photovoltaics through peer effects and social norms," Energy Policy, Elsevier, vol. 118(C), pages 596-602.
    11. Olivella, Jordi & Domenech, Bruno & Calleja, Gema, 2021. "Potential of implementation of residential photovoltaics at city level: The case of London," Renewable Energy, Elsevier, vol. 180(C), pages 577-585.
    12. Felipe Moraes do Nascimento & Julio Cezar Mairesse Siluk & Fernando de Souza Savian & Taís Bisognin Garlet & José Renes Pinheiro & Carlos Ramos, 2020. "Factors for Measuring Photovoltaic Adoption from the Perspective of Operators," Sustainability, MDPI, vol. 12(8), pages 1-29, April.
    13. Shabani, Masoume & Wallin, Fredrik & Dahlquist, Erik & Yan, Jinyue, 2023. "The impact of battery operating management strategies on life cycle cost assessment in real power market for a grid-connected residential battery application," Energy, Elsevier, vol. 270(C).
    14. Andreolli, Francesca & D’Alpaos, Chiara & Moretto, Michele, 2022. "Valuing investments in domestic PV-Battery Systems under uncertainty," Energy Economics, Elsevier, vol. 106(C).
    15. Zander, Kerstin K., 2020. "Unrealised opportunities for residential solar panels in Australia," Energy Policy, Elsevier, vol. 142(C).
    16. Say, Kelvin & John, Michele, 2021. "Molehills into mountains: Transitional pressures from household PV-battery adoption under flat retail and feed-in tariffs," Energy Policy, Elsevier, vol. 152(C).
    17. Angela María Gómez-Restrepo & Juan David González-Ruiz & Sergio Botero Botero, 2024. "Financial Investment Valuation Models for Photovoltaic and Energy Storage Projects: Trends and Challenges," Energies, MDPI, vol. 17(11), pages 1-29, May.
    18. Alipour, M. & Salim, H. & Stewart, Rodney A. & Sahin, Oz, 2020. "Predictors, taxonomy of predictors, and correlations of predictors with the decision behaviour of residential solar photovoltaics adoption: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 123(C).
    19. Ingo Kastner & Inga Wittenberg, 2019. "How Measurements “Affect” the Importance of Social Influences on Household’s Photovoltaic Adoption—A German Case Study," Sustainability, MDPI, vol. 11(19), pages 1-12, September.
    20. Iolanda Saviuc & Herbert Peremans & Steven Van Passel & Kevin Milis, 2019. "Economic Performance of Using Batteries in European Residential Microgrids under the Net-Metering Scheme," Energies, MDPI, vol. 12(1), pages 1-28, January.

    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:gam:jeners:v:14:y:2021:i:14:p:4154-:d:591612. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.