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

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalNot applicablepeer-review

1 Scopus Citations
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Author(s)

  • Kaile Zhou
  • Shuyu Wei
  • Shanlin Yang

Related Research Unit(s)

Detail(s)

Original languageEnglish
Pages (from-to)35-43
Journal / PublicationApplied Energy
Volume248
Online published20 Apr 2019
Publication statusPublished - 15 Aug 2019

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.

Research Area(s)

  • Distributed energy storage, Power supply chain, Time-of-use pricing, User-side microgrid

Bibliographic Note

Full text of this publication does not contain sufficient affiliation information. With consent from the author(s) concerned, the Research Unit(s) information for this record is based on the existing academic department affiliation of the author(s).

Citation Format(s)

Time-of-use pricing model based on power supply chain for user-side microgrid. / Zhou, Kaile; Wei, Shuyu; Yang, Shanlin.

In: Applied Energy, Vol. 248, 15.08.2019, p. 35-43.

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalNot applicablepeer-review