LAPSE:2019.0066
Published Article
LAPSE:2019.0066
Indirect Load Control for Energy Storage Systems Using Incentive Pricing under Time-of-Use Tariff
Mu-Gu Jeong, Seung-Il Moon, Pyeong-Ik Hwang
January 7, 2019
Indirect load control (ILC) is a method by which the customer determines load reduction of electricity by using a price signal. One of the ILCs is a time-of-use (TOU) tariff, which is the most commonly used time-varying retail pricing. Under the TOU tariff, the customer can reduce the energy cost through an energy storage system (ESS). However, because this tariff is fixed for several months, the ESS operation does not truly reflect the wholesale market price, which could widely fluctuate. To overcome this limitation, this paper proposes an incentive pricing method in which the load-serving entity (LSE) gives the incentive pricing signal to the customers with ESSs. Because the ESS charging schedule is determined by the customer through ILC, a bilevel optimization problem that includes the customer optimization problem is utilized to determine the incentive pricing signal. Further, the bilevel optimization problem is reformulated into a one-level problem to be solved by an interior point method. In the proposed incentive scheme: (1) the social welfare increases and (2) the increased social welfare can be equitably divided between the LSE and the customer; and (3) the proposed incentive scheme leads the customer to voluntarily follow the pricing signal.
Keywords
bilevel programming, demand-side management, energy storage system (ESS), indirect load control (ILC)
Suggested Citation
Jeong MG, Moon SI, Hwang PI. Indirect Load Control for Energy Storage Systems Using Incentive Pricing under Time-of-Use Tariff. (2019). LAPSE:2019.0066
Author Affiliations
Jeong MG: Department of Electrical and Computer Engineering, Seoul National University, 1 Gwanak-ro, Gwanak-gu, Seoul 08826, Korea
Moon SI: Department of Electrical and Computer Engineering, Seoul National University, 1 Gwanak-ro, Gwanak-gu, Seoul 08826, Korea
Hwang PI: Korea Electric Power Research Institute (KEPRI), Korea Electric Power Company (KEPCO), 105 Munji-Ro, Yuseong-gu, Daejeon 34056, Korea
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Journal Name
Energies
Volume
9
Issue
7
Article Number
E558
Year
2016
Publication Date
2016-07-19
Published Version
ISSN
1996-1073
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Original Submission
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PII: en9070558, Publication Type: Journal Article
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LAPSE:2019.0066
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doi:10.3390/en9070558
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Jan 7, 2019
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Jan 7, 2019
 
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Calvin Tsay
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