7 Citations (Scopus)
26 Downloads (Pure)

Abstract

Network pricing is essential for electricity system operators to recover investment and operation costs from network users. Current pricing schemes are only for generation and demand that purely withdraws or injects power from/into the system. However, they cannot properly price energy storage (ES), which has the dual characteristics of injecting and withdrawing power. This paper develops a novel pricing scheme for ESs in distribution systems operated by customers to reflect their impact on network planning and operation. A novel charging and discharging methodology is designed for ESs to respond to time of use tariffs for maximising electricity cost savings. The long-term incremental cost for ES is designed based on future reinforcement horizon and short-term operation cost is quantified by system congestion. Then, a novel pricing scheme for ES is designed by integrating the two costs. The pricing signals can guide ES operation to benefit both distribution network operators and ES owners. The new methodology is demonstrated on a small system with an ES of different features and then on a practical Grid Supply Point (GSP) area.

Original languageEnglish
Pages (from-to)283-292
Number of pages10
JournalApplied Energy
Volume212
Early online date22 Dec 2017
DOIs
Publication statusPublished - 15 Feb 2018

Fingerprint

Electric power distribution
Energy storage
Costs
cost
electricity
methodology
congestion
distribution system
Electricity
reinforcement
distribution
energy storage
savings
Reinforcement
Planning

Keywords

  • Charging and discharging strategy
  • Energy storage
  • Investment cost
  • Network pricing

ASJC Scopus subject areas

  • Civil and Structural Engineering
  • Building and Construction
  • Energy(all)
  • Mechanical Engineering
  • Management, Monitoring, Policy and Law

Cite this

Network pricing for customer-operated energy storage in distribution networks. / Yan, Xiaohe; Gu, Chenghong; Li, Furong; Xiang, Yue.

In: Applied Energy, Vol. 212, 15.02.2018, p. 283-292.

Research output: Contribution to journalArticle

@article{fd94a5bd0eee4f8fb99f2258f2e2b117,
title = "Network pricing for customer-operated energy storage in distribution networks",
abstract = "Network pricing is essential for electricity system operators to recover investment and operation costs from network users. Current pricing schemes are only for generation and demand that purely withdraws or injects power from/into the system. However, they cannot properly price energy storage (ES), which has the dual characteristics of injecting and withdrawing power. This paper develops a novel pricing scheme for ESs in distribution systems operated by customers to reflect their impact on network planning and operation. A novel charging and discharging methodology is designed for ESs to respond to time of use tariffs for maximising electricity cost savings. The long-term incremental cost for ES is designed based on future reinforcement horizon and short-term operation cost is quantified by system congestion. Then, a novel pricing scheme for ES is designed by integrating the two costs. The pricing signals can guide ES operation to benefit both distribution network operators and ES owners. The new methodology is demonstrated on a small system with an ES of different features and then on a practical Grid Supply Point (GSP) area.",
keywords = "Charging and discharging strategy, Energy storage, Investment cost, Network pricing",
author = "Xiaohe Yan and Chenghong Gu and Furong Li and Yue Xiang",
year = "2018",
month = "2",
day = "15",
doi = "10.1016/j.apenergy.2017.12.060",
language = "English",
volume = "212",
pages = "283--292",
journal = "Applied Energy",
issn = "0306-2619",
publisher = "Elsevier",

}

TY - JOUR

T1 - Network pricing for customer-operated energy storage in distribution networks

AU - Yan, Xiaohe

AU - Gu, Chenghong

AU - Li, Furong

AU - Xiang, Yue

PY - 2018/2/15

Y1 - 2018/2/15

N2 - Network pricing is essential for electricity system operators to recover investment and operation costs from network users. Current pricing schemes are only for generation and demand that purely withdraws or injects power from/into the system. However, they cannot properly price energy storage (ES), which has the dual characteristics of injecting and withdrawing power. This paper develops a novel pricing scheme for ESs in distribution systems operated by customers to reflect their impact on network planning and operation. A novel charging and discharging methodology is designed for ESs to respond to time of use tariffs for maximising electricity cost savings. The long-term incremental cost for ES is designed based on future reinforcement horizon and short-term operation cost is quantified by system congestion. Then, a novel pricing scheme for ES is designed by integrating the two costs. The pricing signals can guide ES operation to benefit both distribution network operators and ES owners. The new methodology is demonstrated on a small system with an ES of different features and then on a practical Grid Supply Point (GSP) area.

AB - Network pricing is essential for electricity system operators to recover investment and operation costs from network users. Current pricing schemes are only for generation and demand that purely withdraws or injects power from/into the system. However, they cannot properly price energy storage (ES), which has the dual characteristics of injecting and withdrawing power. This paper develops a novel pricing scheme for ESs in distribution systems operated by customers to reflect their impact on network planning and operation. A novel charging and discharging methodology is designed for ESs to respond to time of use tariffs for maximising electricity cost savings. The long-term incremental cost for ES is designed based on future reinforcement horizon and short-term operation cost is quantified by system congestion. Then, a novel pricing scheme for ES is designed by integrating the two costs. The pricing signals can guide ES operation to benefit both distribution network operators and ES owners. The new methodology is demonstrated on a small system with an ES of different features and then on a practical Grid Supply Point (GSP) area.

KW - Charging and discharging strategy

KW - Energy storage

KW - Investment cost

KW - Network pricing

UR - http://www.scopus.com/inward/record.url?scp=85037989181&partnerID=8YFLogxK

U2 - 10.1016/j.apenergy.2017.12.060

DO - 10.1016/j.apenergy.2017.12.060

M3 - Article

VL - 212

SP - 283

EP - 292

JO - Applied Energy

JF - Applied Energy

SN - 0306-2619

ER -