A looming revolution: Implications of self-generation for the risk exposure of retailers. ESRI WP597, September 2018

Managing the risk associated with uncertain load has always been a challenge for retailers in electricity markets. Yet the load variability has been largely predictable in the past, especially when aggregating a large number of consumers. In contrast, the increasing penetration of unpredictable, small-scale electricity generation by consumers, i.e. self-generation, constitutes a new and yet greater volume risk. Using value-at-risk metrics and Monte Carlo simulations based on German historical loads and prices, the contribution of decentralized solar PV self-generation to retailers’ load and revenue risks is assessed. This analysis has implications for the consumers’ welfare and the overall efficiency of electricity markets

Grid integration of intermittent renewable energy sources using price-responsive plug-in electric vehicles

Plug-in electric vehicles (PEVs) are expected to balance the fluctuation of re-newable energy sources (RES). To investigate the contribution of PEVs, the availability of mobile battery storage and the control mechanism for load man-agement are crucial. This study therefore combined the following: a stochastic model to determine mobility behavior, an optimization model to minimize vehicle charging costs and an agent-based electricity market equilibrium model to esti-mate variable electricity prices. The variable electricity prices are calculated based on marginal generation costs. Hence, because of the merit order effect, the electricity prices provide incentives to consume electricity when the supply of renewable generation is high. Depending on the price signals and mobility behavior, PEVs calculate a cost minimizing charging schedule and therefore balance the fluctuation of RES. The analysis shows that it is possible to limit the peak load using the applied control mechanism. The contribution of PEVs to improving the integration of intermittent renewable power generation into the grid depends on the characteristic of the RES generation profile. For the Ger-man 2030 scenario used here, the negative residual load was reduced by 15 to 22 percent and the additional consumption of negative residual load was be-tween 34 and 52 percent. --Plug-in electric vehicles,demand-side management,variable prices,intermittent generation

A strategic study of energy efficient and hybrid energy system options for a multi-family building in Korea

This study is to identify performance of energy efficiency measures and to match low-carbon and renewable energy (RE) systems supplies to demands in the context of multi-family residential buildings in Korea. An approach to the evaluation of the hybrid energy systems was investigated, including consideration of heat and power demand profiles, energy system combinations, building design options and strategies for matching supply to demand. The approach is encapsulated within an integrated software environment. Building energy simulation technology was exploited to make virtual energy use data. Low-carbon and RE system modelling techniques were used to predict energy supply profiles. A series of demand/supply matching-based analyses were made to identify the effect of energy efficient demand measures (e.g. roof-top gardens, innovative underfloor heating system) and evaluate the capacity utilisation factor from the hybrid energy systems. On the basis of performance information obtained at the conceptual design stage, the design team can pinpoint the most energy efficient demand/supply combination, and consequently, maximise the impact of hybrid energy systems adoption

Efficient energy management for the internet of things in smart cities

The drastic increase in urbanization over the past few years requires sustainable, efficient, and smart solutions for transportation, governance, environment, quality of life, and so on. The Internet of Things offers many sophisticated and ubiquitous applications for smart cities. The energy demand of IoT applications is increased, while IoT devices continue to grow in both numbers and requirements. Therefore, smart city solutions must have the ability to efficiently utilize energy and handle the associated challenges. Energy management is considered as a key paradigm for the realization of complex energy systems in smart cities. In this article, we present a brief overview of energy management and challenges in smart cities. We then provide a unifying framework for energy-efficient optimization and scheduling of IoT-based smart cities. We also discuss the energy harvesting in smart cities, which is a promising solution for extending the lifetime of low-power devices and its related challenges. We detail two case studies. The first one targets energy-efficient scheduling in smart homes, and the second covers wireless power transfer for IoT devices in smart cities. Simulation results for the case studies demonstrate the tremendous impact of energy-efficient scheduling optimization and wireless power transfer on the performance of IoT in smart cities

How fast can one overcome the paradox of the energy transition? A physico-economic model for the European power grid

The paradox of the energy transition is that the low marginal costs of new renewable energy sources (RES) drag electricity prices down and discourage investments in flexible productions that are needed to compensate for the lack of dispatchability of the new RES. The energy transition thus discourages the investments that are required for its own harmonious expansion. To investigate how this paradox can be overcome, we argue that, under certain assumptions, future electricity prices are rather accurately modeled from the residual load obtained by subtracting non-flexible productions from the load. Armed with the resulting economic indicator, we investigate future revenues for European power plants with various degree of flexibility. We find that, if neither carbon taxes nor fuel prices change, flexible productions would be financially rewarded better and sooner if the energy transition proceeds faster but at more or less constant total production, i.e. by reducing the production of thermal power plants at the same rate as the RES production increases. Less flexible productions, on the other hand, would see their revenue grow more moderately. Our results indicate that a faster energy transition with a quicker withdrawal of thermal power plants would reward flexible productions faster.Comment: 13 pages, 11 figures and 2 table

Towards new renewable energy policies in urban areas : the re-definition of optimum inclination of photovoltaic panels

The optimum inclination and orientation of fixed Photovoltaic (PV) panels has long been defined in terms of maximizing the annual electricity yield per capacity installed according to the hemisphere and latitude where the PV system is located. Such optimum setup would thus also maximize the output per system cost, but it would not maximize the output per unit of available area, and it would not necessarily optimize the contribution of photovoltaic electricity vis-à-vis overall electricity demand patterns. This study seeks to draw the attention of policy-makers to the fact that incentivizing lower-than-optimum PV panel tilt angles can be an inexpensive strategy to substantially increase the renewable electricity yield in a given area. It also discusses how such strategy can be incorporated into an overall supply/demand grid management and renewable energy integration plan.peer-reviewe

A multi-criteria performance study of an integrated demand/supply energy system for low and zero carbon technologies within domestic building design

When low carbon and renewable energy (RE) systems are adopted in a building, matching the outputs from RE systems (e.g. photovoltaic, solar collectors, small scale wind turbines and heat pumps) to demand has to be taken into account to fully realise the potential of the hybrid energy system. Considering the varying demand profiles due to different building design options (e.g. orientation, construction types etc), it is necessary to evaluate key technology elements in an integrated context and establish appropriate strategies for simultaneously meeting heating and electricity loads as well as matching demand and supply. This paper presents a new approach to evaluate the interactive effects of low carbon technologies and demand reduction measures in the early design stage of a new building. A case study of a sustainable domestic building project (PLUS 50), was implemented on the basis of the proposed design approach

Insufficient Incentives for Investment in Electricity Generation

In theory, competitive electricity markets can provide incentives for efficient investment in generating capacity. We show that if consumers and investors are risk averse, investment is efficient only if investors in generating capacity can sign long-term contracts with consumers. Otherwise the uncovered price risk increases financing costs, reduces equilibrium investment levels, distorts technology choice towards less capital-intensive generation and reduces consumer utility. We observe insufficient levels of long-term contracts in existing markets, possibly because retail companies are not credible counter-parties if their final customer can switch easily. With consumer franchise, retailers can sign long-term contracts, but this solution comes at the expense of the idea of retail competition. Alternative capacity mechanisms to stimulate investment are discussed