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Is Energy Storage an Economic Opportunity for the Eco-Neighborhood?

Author

Listed:
  • Hélène Le Cadre

    (CMA - Centre de Mathématiques Appliquées - Mines Paris - PSL (École nationale supérieure des mines de Paris) - PSL - Université Paris sciences et lettres)

  • David Mercier

    (LIST (CEA) - Laboratoire d'Intégration des Systèmes et des Technologies - DRT (CEA) - Direction de Recherche Technologique (CEA) - CEA - Commissariat à l'énergie atomique et aux énergies alternatives)

Abstract

In this article, we consider houses belonging to an eco-neighborhood in which inhabitants have the capacity to optimize dynamically the energy demand and the energy storage level so as to maximize their utility. The inhabitants' preferences are characterized by their sensitivity toward comfort versus price, the optimal expected temperature in the house, thermal loss and heating efficiency of their house. At his level, the eco-neighborhood manager shares the resource produced by the eco-neighborhood according to two schemes: an equal allocation between the houses and a priority based one. The problem is modeled as a stochastic game and solved using stochastic dynamic programming. We simulate the energy consumption of the eco-neighborhood under various pricing mechanisms: flat rate, peak and off-peak hour, blue/white/red day, peak day clearing and a dynamic update of the price based on the consumption of the eco-neighborhood. We observe that economic incentives for houses to store energy depend deeply on the implemented pricing mechanism and on the homogeneity in the houses' characteristics. Furthermore, when prices are based on the consumption of the eco-neighborhood, storage appears as a compensation for the errors made by the service provider in the prediction of the consumption of the eco-neighborhood.

Suggested Citation

  • Hélène Le Cadre & David Mercier, 2013. "Is Energy Storage an Economic Opportunity for the Eco-Neighborhood?," Post-Print hal-00758916, HAL.
    • Handle: RePEc:hal:journl:hal-00758916
    DOI: 10.1007/s11066-013-9075-7
    Note: View the original document on HAL open archive server: https://hal.science/hal-00758916v3
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    References listed on IDEAS

    as
    1. Patrick Bolton & Mathias Dewatripont, 2005. "Contract Theory," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262025760, December.
    2. Hélène Le Cadre & Jean-Sébastien Bedo, 2012. "Distributed Learning in Hierarchical Networks," Post-Print hal-00740905, HAL.
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    More about this item

    Keywords

    Eco-Neighborhood; Planning; Stochastic game theory; Energy storage; Pricing;
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