EURO 2024 Copenhagen
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3323. Modeling the interaction between local energy management and a global electric system

Invited abstract in session WB-19: OR in Energy, stream OR in Energy.

Wednesday, 10:30-12:00
Room: 44 (building: 116)

Authors (first author is the speaker)

1. Kallia Charron
Laboratoire EconomiX, Nanterre University
2. Frederic Lantz
IFP-School

Abstract

Local energy management (LEM) addresses local stakes and thus a LEM strategy does not necessarily align with the aim of a centralized electric system. Yet, if spread widely, it can affect the global load curve and therefore the global electric system (GES) and the price associated. In addition, the investment decision into a LEM solution and oftentimes the management strategy itself are highly dependent on the global electricity price and the accuracy of its prediction. Hence, what would be the impact of a LEM solution adoption – by a significant number of consumers, referred to as “local consumers” – on its own profitability through the effect it can have on the global price? This paper aims at modeling the interaction between LEM and a GES. To do so, we propose a two-level equilibrium optimization model. One level models the impact of implementing a LEM solution for a “local consumers” on their aggregated load curve. The second level models the variation in the global electricity price resulting from the shift of the global load curve induced by those local consumers. The price being both a decision parameter for the LEM in the first level and the output of the second, the optimization purpose is to find the equilibrium. This paper then presents the results of the model for several LEM solutions such as demand response, residential photovoltaic self-consumption and management of electric vehicle charging, using aggregated simulated data for the consumption.

Keywords

Status: accepted

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