How distributed energy resources and dynamic pricing interact to modify residential electricity loads
Abstract
In this paper, we develop a model to analyze the effects of different electricity pricing regimes on the consumption decisions of consumers with installed solar photovoltaic generation assets under different asset configurations. Specifically, we explore the impacts of pricing structures (static, time-of-use, and real-time pricing) and technology deployments (grid only, solar, solar+battery) on consumers and utilities. Distributed energy resources (DERs) by including energy storage can resolve the issues of intermittency and timing differences currently addressed by net metering. Adding energy storage with solar panels allows consumers to be completely grid-independent. Grid independence drastically changes the relationship consumers have with the grid and grid services. Individuals can increase resilience and have greater control of their costs. It may also create an opportunity for utilities to leverage consumer investment in distributed generation and storage technologies to improve grid operations and service. Encouraging consumer participation in the generation and dispatch of energy could take advantage of consumers' distribution to reduce transmission and distribution investments and their associated fixed costs. This paper uses an hour-by-hour bottom-up simulation to model residential electricity load. The estimated load is then reduced by the consumers' sensitivity to price changes in the hour. For scenarios including a battery, a peak shaving algorithm is used to shift demand from the highest demand times to the least demand times using a 24-hour forecast. A geographically diverse set of locations are selected for regional comparison. Location-relevant prices are used for real-time pricing to keep costs in line with local differences. The results from the model will demonstrate the potential effects of alternate pricing structures on both consumers and utilities. Understanding the different outcomes is important for evaluating alternative regulatory frameworks for establishing different pricing structures.
Degree
M.S.