Aggregation of Households in Community Energy Systems: An Analysis from Actors’ and Market Perspectives

In decentralized energy systems, electricity generated and flexibility offered by households can be organized in the form of community energy systems. Business models, which enable this aggregation at the community level, will impact on the involved actors and the electricity market. For the case of...

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Main Authors: Seyedfarzad Sarfarazi, Marc Deissenroth-Uhrig, Valentin Bertsch
Format: Article
Language:English
Published: MDPI AG 2020-10-01
Series:Energies
Subjects:
Online Access:https://www.mdpi.com/1996-1073/13/19/5154
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author Seyedfarzad Sarfarazi
Marc Deissenroth-Uhrig
Valentin Bertsch
author_facet Seyedfarzad Sarfarazi
Marc Deissenroth-Uhrig
Valentin Bertsch
author_sort Seyedfarzad Sarfarazi
collection DOAJ
description In decentralized energy systems, electricity generated and flexibility offered by households can be organized in the form of community energy systems. Business models, which enable this aggregation at the community level, will impact on the involved actors and the electricity market. For the case of Germany, in this paper different aggregation scenarios are analyzed from the perspective of actors and the market. The main components in these scenarios are the Community Energy Storage (CES) technology, the electricity tariff structure, and the aggregation goal. For this evaluation, a bottom-up community energy system model is presented, in which the households and retailer are the key actors. In our model, we distinguish between the households with inflexible electricity load and the flexible households that own a heat pump or Photovoltaic (PV) storage systems. By using a game-theoretic approach and modeling the interaction between the retailer and households as a Stackelberg game, a community real-time pricing structure is derived. To find the solution of the modeled Stackelberg game, a genetic algorithm is implemented. To analyze the impact of the aggregation scenarios on the electricity market, a “Market Alignment Indicator” is proposed. The results show that under the considered regulatory framework, the deployment of a CES can increase the retailer’s operational profits while improving the alignment of the community energy system with the signals from the electricity market. Depending on the aggregation goal of the retailer, the implementation of community real-time pricing could lead to a similar impact. Moreover, such a tariff structure can lead to financial benefits for flexible households.
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spelling doaj.art-2c4f85ce7f01413e90bba8bda6ca02c52023-11-20T15:58:27ZengMDPI AGEnergies1996-10732020-10-011319515410.3390/en13195154Aggregation of Households in Community Energy Systems: An Analysis from Actors’ and Market PerspectivesSeyedfarzad Sarfarazi0Marc Deissenroth-Uhrig1Valentin Bertsch2Department of Energy Systems Analysis, Institute of Engineering Thermodynamics, German Aerospace Center (DLR), Curiestraße 4, 70563 Stuttgart, GermanySchool of Engineering, University of Applied Sciences Saarbrücken (HTW SAAR), Goebenstr. 40, 66117 Saarbrücken, GermanyChair of Energy Systems and Energy Economics, Ruhr University Bochum (RUB), 44801 Bochum, GermanyIn decentralized energy systems, electricity generated and flexibility offered by households can be organized in the form of community energy systems. Business models, which enable this aggregation at the community level, will impact on the involved actors and the electricity market. For the case of Germany, in this paper different aggregation scenarios are analyzed from the perspective of actors and the market. The main components in these scenarios are the Community Energy Storage (CES) technology, the electricity tariff structure, and the aggregation goal. For this evaluation, a bottom-up community energy system model is presented, in which the households and retailer are the key actors. In our model, we distinguish between the households with inflexible electricity load and the flexible households that own a heat pump or Photovoltaic (PV) storage systems. By using a game-theoretic approach and modeling the interaction between the retailer and households as a Stackelberg game, a community real-time pricing structure is derived. To find the solution of the modeled Stackelberg game, a genetic algorithm is implemented. To analyze the impact of the aggregation scenarios on the electricity market, a “Market Alignment Indicator” is proposed. The results show that under the considered regulatory framework, the deployment of a CES can increase the retailer’s operational profits while improving the alignment of the community energy system with the signals from the electricity market. Depending on the aggregation goal of the retailer, the implementation of community real-time pricing could lead to a similar impact. Moreover, such a tariff structure can lead to financial benefits for flexible households.https://www.mdpi.com/1996-1073/13/19/5154decentralized energy systemenergy communitycommunity energy storagecommunity energy systemgame-theoryStackelberg
spellingShingle Seyedfarzad Sarfarazi
Marc Deissenroth-Uhrig
Valentin Bertsch
Aggregation of Households in Community Energy Systems: An Analysis from Actors’ and Market Perspectives
Energies
decentralized energy system
energy community
community energy storage
community energy system
game-theory
Stackelberg
title Aggregation of Households in Community Energy Systems: An Analysis from Actors’ and Market Perspectives
title_full Aggregation of Households in Community Energy Systems: An Analysis from Actors’ and Market Perspectives
title_fullStr Aggregation of Households in Community Energy Systems: An Analysis from Actors’ and Market Perspectives
title_full_unstemmed Aggregation of Households in Community Energy Systems: An Analysis from Actors’ and Market Perspectives
title_short Aggregation of Households in Community Energy Systems: An Analysis from Actors’ and Market Perspectives
title_sort aggregation of households in community energy systems an analysis from actors and market perspectives
topic decentralized energy system
energy community
community energy storage
community energy system
game-theory
Stackelberg
url https://www.mdpi.com/1996-1073/13/19/5154
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AT valentinbertsch aggregationofhouseholdsincommunityenergysystemsananalysisfromactorsandmarketperspectives