IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v248y2019icp35-43.html
   My bibliography  Save this article

Time-of-use pricing model based on power supply chain for user-side microgrid

Author

Listed:
  • Zhou, Kaile
  • Wei, Shuyu
  • Yang, Shanlin

Abstract

The user-side microgrid offers great potential for improving energy efficiency. This flexible and small-scale power system is characterized by multiple types of clean power supplies. The power supply chain can reveal the supply-demand relationships in the series of steps from power generation to consumption. However, electricity prices tend to vary and can significantly affect the actual energy costs to end-users and other entities in the power supply chain. In this study, we propose an optimization model of time-of-use pricing for the user-side microgrid from the perspective of power supply chain management. The objective of this model is to minimize the total cost of the power supply chain and optimize the charging-discharging behaviors of end-users. First, to reduce the impact of demand amplification and variation, we investigated the bullwhip effect of the power supply chain. Then, we considered distributed energy storage as an important component of the user-side microgrid and how electric power companies can utilize pricing strategies to optimize the charging-discharging behaviors of end-users. We performed experiments based on two scenarios that assumed end-users with and without distributed energy storage devices. A comparative analysis of the modelling results indicates that optimal time-of-use pricing can support the charging-discharging behaviors of residential users and reduce the cost of the entire electric power supply chain. The optimized time-of-use price is important for stability, flexibility, and efficiency improvement in both the user-side microgrid and the entire power supply chain.

Suggested Citation

  • Zhou, Kaile & Wei, Shuyu & Yang, Shanlin, 2019. "Time-of-use pricing model based on power supply chain for user-side microgrid," Applied Energy, Elsevier, vol. 248(C), pages 35-43.
    • Handle: RePEc:eee:appene:v:248:y:2019:i:c:p:35-43
    DOI: 10.1016/j.apenergy.2019.04.076
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306261919307391
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.apenergy.2019.04.076?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. Gonzalez de Durana, Jose & Barambones, Oscar, 2018. "Technology-free microgrid modeling with application to demand side management," Applied Energy, Elsevier, vol. 219(C), pages 165-178.
    2. de Carvalho, Ariovaldo Lopes & Antunes, Carlos Henggeler & Freire, Fausto, 2016. "Economic-energy-environment analysis of prospective sugarcane bioethanol production in Brazil," Applied Energy, Elsevier, vol. 181(C), pages 514-526.
    3. Zhou, Kaile & Yang, Shanlin & Chen, Zhiqiang & Ding, Shuai, 2014. "Optimal load distribution model of microgrid in the smart grid environment," Renewable and Sustainable Energy Reviews, Elsevier, vol. 35(C), pages 304-310.
    4. Chen, Y. & Trifkovic, M., 2018. "Optimal scheduling of a microgrid in a volatile electricity market environment: Portfolio optimization approach," Applied Energy, Elsevier, vol. 226(C), pages 703-712.
    5. Kabalci, Yasin, 2016. "A survey on smart metering and smart grid communication," Renewable and Sustainable Energy Reviews, Elsevier, vol. 57(C), pages 302-318.
    6. Ioakimidis, Christos S. & Thomas, Dimitrios & Rycerski, Pawel & Genikomsakis, Konstantinos N., 2018. "Peak shaving and valley filling of power consumption profile in non-residential buildings using an electric vehicle parking lot," Energy, Elsevier, vol. 148(C), pages 148-158.
    7. Robert L. Bray & Haim Mendelson, 2012. "Information Transmission and the Bullwhip Effect: An Empirical Investigation," Management Science, INFORMS, vol. 58(5), pages 860-875, May.
    8. Li, Bei & Roche, Robin & Paire, Damien & Miraoui, Abdellatif, 2019. "A price decision approach for multiple multi-energy-supply microgrids considering demand response," Energy, Elsevier, vol. 167(C), pages 117-135.
    9. Derakhshan, Ghasem & Shayanfar, Heidar Ali & Kazemi, Ahad, 2016. "The optimization of demand response programs in smart grids," Energy Policy, Elsevier, vol. 94(C), pages 295-306.
    10. Nosratabadi, Seyyed Mostafa & Hooshmand, Rahmat-Allah & Gholipour, Eskandar, 2017. "A comprehensive review on microgrid and virtual power plant concepts employed for distributed energy resources scheduling in power systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 67(C), pages 341-363.
    11. Peker, Meltem & Kocaman, Ayse Selin & Kara, Bahar Y., 2018. "Benefits of transmission switching and energy storage in power systems with high renewable energy penetration," Applied Energy, Elsevier, vol. 228(C), pages 1182-1197.
    12. Zhou, Kaile & Yang, Shanlin, 2015. "Demand side management in China: The context of China’s power industry reform," Renewable and Sustainable Energy Reviews, Elsevier, vol. 47(C), pages 954-965.
    13. Dariush Khezrimotlagh & Yao Chen, 2018. "The Optimization Approach," International Series in Operations Research & Management Science, in: Decision Making and Performance Evaluation Using Data Envelopment Analysis, chapter 0, pages 107-134, Springer.
    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. Xu, Fangyuan & Zhu, Weidong & Wang, Yi Fei & Lai, Chun Sing & Yuan, Haoliang & Zhao, Yujia & Guo, Siming & Fu, Zhengxin, 2022. "A new deregulated demand response scheme for load over-shifting city in regulated power market," Applied Energy, Elsevier, vol. 311(C).
    2. Oleg Gubarevych & Stanisław Duer & Inna Melkonova & Marek Woźniak & Jacek Paś & Marek Stawowy & Krzysztof Rokosz & Konrad Zajkowski & Dariusz Bernatowicz, 2023. "Research on and Assessment of the Reliability of Railway Transport Systems with Induction Motors," Energies, MDPI, vol. 16(19), pages 1-21, September.
    3. Yang, Shenbo & Tan, Zhongfu & Lin, Hongyu & Li, Peng & De, Gejirifu & Zhou, Feng’ao & Ju, Liwei, 2020. "A two-stage optimization model for Park Integrated Energy System operation and benefit allocation considering the effect of Time-Of-Use energy price," Energy, Elsevier, vol. 195(C).
    4. Qingle Pang & Lin Ye & Houlei Gao & Xinian Li & Yang Zheng & Chenbin He, 2021. "Penalty Electricity Price-Based Optimal Control for Distribution Networks," Energies, MDPI, vol. 14(7), pages 1-16, March.
    5. Kaiye Gao & Tianshi Wang & Chenjing Han & Jinhao Xie & Ye Ma & Rui Peng, 2021. "A Review of Optimization of Microgrid Operation," Energies, MDPI, vol. 14(10), pages 1-39, May.
    6. Marek Stawowy & Adam Rosiński & Jacek Paś & Stanisław Duer & Marta Harničárová & Krzysztof Perlicki, 2023. "The Reliability and Exploitation Analysis Method of the ICT System Power Supply with the Use of Modelling Based on Rough Sets," Energies, MDPI, vol. 16(12), pages 1-18, June.
    7. Syed Asif Raza, 2022. "A bibliometric analysis of pricing models in supply chain," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 21(2), pages 228-251, April.
    8. Sasaki, Kento & Aki, Hirohisa & Ikegami, Takashi, 2022. "Application of model predictive control to grid flexibility provision by distributed energy resources in residential dwellings under uncertainty," Energy, Elsevier, vol. 239(PB).
    9. Gržanić, M. & Capuder, T. & Zhang, N. & Huang, W., 2022. "Prosumers as active market participants: A systematic review of evolution of opportunities, models and challenges," Renewable and Sustainable Energy Reviews, Elsevier, vol. 154(C).
    10. Amit Shewale & Anil Mokhade & Nitesh Funde & Neeraj Dhanraj Bokde, 2020. "An Overview of Demand Response in Smart Grid and Optimization Techniques for Efficient Residential Appliance Scheduling Problem," Energies, MDPI, vol. 13(16), pages 1-31, August.
    11. Yan, Zhongzhen & Zhu, Xinyuan & Chang, Yiming & Wang, Xianglong & Ye, Zhiwei & Xu, Zhigang & Fars, Ashk, 2023. "Renewable energy effects on energy management based on demand response in microgrids environment," Renewable Energy, Elsevier, vol. 213(C), pages 205-217.
    12. Tsao, Yu-Chung & Thanh, Vo-Van & Lu, Jye-Chyi, 2022. "Efficiency of resilient three-part tariff pricing schemes in residential power markets," Energy, Elsevier, vol. 239(PD).

    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. Wen, Lulu & Zhou, Kaile & Yang, Shanlin & Li, Lanlan, 2018. "Compression of smart meter big data: A survey," Renewable and Sustainable Energy Reviews, Elsevier, vol. 91(C), pages 59-69.
    2. Zhou, Kaile & Yang, Shanlin & Shao, Zhen, 2016. "Energy Internet: The business perspective," Applied Energy, Elsevier, vol. 178(C), pages 212-222.
    3. Zhou, Kaile & Yang, Changhui & Shen, Jianxin, 2017. "Discovering residential electricity consumption patterns through smart-meter data mining: A case study from China," Utilities Policy, Elsevier, vol. 44(C), pages 73-84.
    4. Zhou, Kaile & Yang, Shanlin, 2015. "A framework of service-oriented operation model of China׳s power system," Renewable and Sustainable Energy Reviews, Elsevier, vol. 50(C), pages 719-725.
    5. Díaz, Guzmán & Coto, José & Gómez-Aleixandre, Javier, 2019. "Prediction and explanation of the formation of the Spanish day-ahead electricity price through machine learning regression," Applied Energy, Elsevier, vol. 239(C), pages 610-625.
    6. Mohammed Abdullah H. Alshehri & Youguang Guo & Gang Lei, 2023. "Energy Management Strategies of Grid-Connected Microgrids under Different Reliability Conditions," Energies, MDPI, vol. 16(9), pages 1-22, May.
    7. Cao, K.H. & Qi, H.S. & Tsai, C.H. & Woo, C.K. & Zarnikau, J., 2021. "Energy trading efficiency in the US Midcontinent electricity markets," Applied Energy, Elsevier, vol. 302(C).
    8. e Silva, Danilo P. & Félix Salles, José L. & Fardin, Jussara F. & Rocha Pereira, Maxsuel M., 2020. "Management of an island and grid-connected microgrid using hybrid economic model predictive control with weather data," Applied Energy, Elsevier, vol. 278(C).
    9. Hossein Shayeghi & Elnaz Shahryari & Mohammad Moradzadeh & Pierluigi Siano, 2019. "A Survey on Microgrid Energy Management Considering Flexible Energy Sources," Energies, MDPI, vol. 12(11), pages 1-26, June.
    10. Longxi Li, 2020. "Optimal Coordination Strategies for Load Service Entity and Community Energy Systems Based on Centralized and Decentralized Approaches," Energies, MDPI, vol. 13(12), pages 1-22, June.
    11. Lin, Haiyang & Wang, Qinxing & Wang, Yu & Liu, Yiling & Sun, Qie & Wennersten, Ronald, 2017. "The energy-saving potential of an office under different pricing mechanisms – Application of an agent-based model," Applied Energy, Elsevier, vol. 202(C), pages 248-258.
    12. Saffari, Mohammad & de Gracia, Alvaro & Fernández, Cèsar & Belusko, Martin & Boer, Dieter & Cabeza, Luisa F., 2018. "Optimized demand side management (DSM) of peak electricity demand by coupling low temperature thermal energy storage (TES) and solar PV," Applied Energy, Elsevier, vol. 211(C), pages 604-616.
    13. Ana Cabrera-Tobar & Alessandro Massi Pavan & Giovanni Petrone & Giovanni Spagnuolo, 2022. "A Review of the Optimization and Control Techniques in the Presence of Uncertainties for the Energy Management of Microgrids," Energies, MDPI, vol. 15(23), pages 1-38, December.
    14. Wang, Yuwei & Tang, Liu & Yang, Yuanjuan & Sun, Wei & Zhao, Huiru, 2020. "A stochastic-robust coordinated optimization model for CCHP micro-grid considering multi-energy operation and power trading with electricity markets under uncertainties," Energy, Elsevier, vol. 198(C).
    15. Emanuel Canelas & Tânia Pinto-Varela & Bartosz Sawik, 2020. "Electricity Portfolio Optimization for Large Consumers: Iberian Electricity Market Case Study," Energies, MDPI, vol. 13(9), pages 1-21, May.
    16. Lingmin, Chen & Jiekang, Wu & Fan, Wu & Huiling, Tang & Changjie, Li & Yan, Xiong, 2020. "Energy flow optimization method for multi-energy system oriented to combined cooling, heating and power," Energy, Elsevier, vol. 211(C).
    17. Chen, Wen & Zhou, Kaile & Yang, Shanlin & Wu, Cheng, 2017. "Data quality of electricity consumption data in a smart grid environment," Renewable and Sustainable Energy Reviews, Elsevier, vol. 75(C), pages 98-105.
    18. Wu, Ying & Wu, Yanpeng & Guerrero, Josep M. & Vasquez, Juan C., 2021. "A comprehensive overview of framework for developing sustainable energy internet: From things-based energy network to services-based management system," Renewable and Sustainable Energy Reviews, Elsevier, vol. 150(C).
    19. Purkayastha, Sagar N. & Chen, Yujun & Gates, Ian D. & Trifkovic, Milana, 2020. "A kelly criterion based optimal scheduling of a microgrid on a steam-assisted gravity drainage (SAGD) facility," Energy, Elsevier, vol. 204(C).
    20. Zhou, Kaile & Fu, Chao & Yang, Shanlin, 2016. "Big data driven smart energy management: From big data to big insights," Renewable and Sustainable Energy Reviews, Elsevier, vol. 56(C), pages 215-225.

    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:appene:v:248:y:2019:i:c:p:35-43. 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/405891/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.