LAPSE:2023.23809
Published Article

LAPSE:2023.23809
Optimal Coordination Strategies for Load Service Entity and Community Energy Systems Based on Centralized and Decentralized Approaches
March 27, 2023
Abstract
The energy interaction among a load service entity and community energy systems in neighboring communities leads to a complex energy generation, storage, and transaction problem. A load service entity is formed by a local electricity generation system, storage system, and renewable energy resources, which can provide ancillary services to customers and the utility grid. This paper proposes two coordination schemes for the interaction of community-based energy systems and load service entities based on game-theoretic frameworks. The first one is a centralized coordination scheme with full cooperation, in which the load service entity and community energy systems jointly activate the local resources. The second one is set as a decentralized coordination scheme to obtain a relative balance of interests among the market participants in a Stackelberg framework. Two mathematical models are developed for the day-ahead decision-making of the above energy management schemes. The Shapley value method, Karush-Kuhn-Tucker conditions, and strong dual theory are applied to solve the complex coordination problems. Numerical study shows the effectiveness of the coordination strategies that all stakeholders benefit from the proposed coordination schemes and create a winâwin situation. In addition, sensitivity analysis is conducted to study the effects of system configuration, energy demand, and energy prices on the economic performance of all stakeholders. The results can serve as references for business managers of the load service entity.
The energy interaction among a load service entity and community energy systems in neighboring communities leads to a complex energy generation, storage, and transaction problem. A load service entity is formed by a local electricity generation system, storage system, and renewable energy resources, which can provide ancillary services to customers and the utility grid. This paper proposes two coordination schemes for the interaction of community-based energy systems and load service entities based on game-theoretic frameworks. The first one is a centralized coordination scheme with full cooperation, in which the load service entity and community energy systems jointly activate the local resources. The second one is set as a decentralized coordination scheme to obtain a relative balance of interests among the market participants in a Stackelberg framework. Two mathematical models are developed for the day-ahead decision-making of the above energy management schemes. The Shapley value method, Karush-Kuhn-Tucker conditions, and strong dual theory are applied to solve the complex coordination problems. Numerical study shows the effectiveness of the coordination strategies that all stakeholders benefit from the proposed coordination schemes and create a winâwin situation. In addition, sensitivity analysis is conducted to study the effects of system configuration, energy demand, and energy prices on the economic performance of all stakeholders. The results can serve as references for business managers of the load service entity.
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Keywords
centralized coordination scheme, community energy systems, coordination strategy, decentralized coordination scheme, energy management, load service entity
Subject
Suggested Citation
Li L. Optimal Coordination Strategies for Load Service Entity and Community Energy Systems Based on Centralized and Decentralized Approaches. (2023). LAPSE:2023.23809
Author Affiliations
Li L: School of Economics and Management, China University of Geosciences, Wuhan 430074, China; Center for Energy Environmental Management and Decision-Making, China University of Geosciences, Wuhan 430074, China
Journal Name
Energies
Volume
13
Issue
12
Article Number
E3202
Year
2020
Publication Date
2020-06-19
ISSN
1996-1073
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Original Submission
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PII: en13123202, Publication Type: Journal Article
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LAPSE:2023.23809
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https://doi.org/10.3390/en13123202
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Mar 27, 2023
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