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Prosumer Energy Management Under Controllable Power Transactions With The Grid
Prosumer Energy Management Under Controllable Power Transactions With The Grid
Georgios C. Christoforidis
Dept.of Electrical and Computer
Engineering
University of Western Macedonia
Kozani, Greece
gchristoforidis@uowm.gr
Abstract—In this paper, a residential Energy Management the PV penetration [3]. To this end, the authors of [4] present
System (EMS) for prosumers is presented to schedule optimally a residential load management to improve the self-sufficiency
the operation of both the schedulable appliances and the Battery of the residence. The optimal daily scheduling of residential
Energy Storage System (BESS). The target of this model is the appliances to increase the self-sufficiency of different
minimization of the electricity cost and the reduction of both the households is analyzed in [5]. Although these approaches
imported and exported power peaks. Through this approach, provide high self-sufficiency rate (SSR) in the examined
the prosumer causes smoother power flow across the buildings and consequently mitigate the total energy traded
distribution network (DN), thus avoiding increased power losses with the grid, they do not ensure the reduction of power traded
and intense voltage fluctuations. For joint optimal financial and
peaks and in turn their impact on the grid operation.
technical optimization of each prosumer, the EMS aims at the
maximization of financial benefits, applying incline block rates
Recognizing this risk, the studies in [6]-[8] propose EMSs for
(IBR) tariffs on both the purchased and selling prices. In this prosumers that are capable of simultaneously increasing the
DOI: 10.1109/EEEIC/ICPSEUROPE57605.2023.10194761
way, less profit is yielded to prosumers when the power residence’s SSR and shaving the imported and exported
transaction with the DN is high, thus this scheme also implies peaks. Nevertheless, none of the aforementioned approaches
power peaks reduction. The results of the proposed EMS show considers the electricity prices and therefore they do not
improvement regarding the prosumer’s self-sufficiency and the ensure the improvement in prosumer’s financial benefits.
daily electricity cost. At the same time benefits the DN in terms
The latter is the main motivation for prosumers to apply a
of reduced power losses and improved voltage profile are
residential EMS. For that reason, several studies focus on
depicted. Finally, the effectiveness of this EMS is also verified by
the comparison with four different objective functions.
EMS aiming at the financial optimization of the residence. In
[9] the authors propose a residential EMS based on a meta-
Keywords— demand side management, distribution network heuristic algorithm that exploits the price fluctuations to
support, energy management system, prosumer, storage. minimize the electricity bill. The authors in [10] decrease the
prosumer’s electricity cost under flat price. To accomplish this
I. INTRODUCTION goal, this study reduces the operation time of non-crucial
The rapid installation of rooftop photovoltaic (PV) in appliances when there is no PV production, thus the user
buildings is a central aspect of the REPowerEU plan which is comfort is not affected. An EMS that schedule both the
recently defined by the European Union [1]. However, the operation of flexible loads and the BESS to maximize the
intermittent production of these power units could adversely financial benefits of the prosumers is presented in [11]. This
affect grid operation by causing voltage violations and reverse EMS enables the BESS to exchange power with the grid, thus
power flow [2]. On the other side, the installation of hybrid participating in energy trading and taking further advantages
battery energy storage system (BESS) with PVs, and the by the price fluctuations. However, the implementation of
application of demand side management (DSM) techniques in these approaches could cause imported and exported power
active building management could efficiently balance the peaks, thus stressing the grid operation.
building’s demand and production power. To this direction, In order to improve the prosumer’s financial benefits and
residential energy management systems (EMSs) have been prevent demand peaks, several studies combined the existing
developed to combine these assets and are expected to play a pricing model with incline block rates (IBR) tariffs. In this
critical role in the further penetration of PVs. way, the purchased price is increased when demand power is
Meeting the building’s demand by the on-site production greater than a predefined threshold, acting thus as a penalty
could reduce the energy traded with the grid, thus facilitating for demand peaks. Specifically, a residential EMS that
incorporates the real-time pricing with IBR to minimize the
This paper has been carried out under the project: “Development of New electricity cost and reduce the demand peaks is implemented
Innovative Low-Carbon Energy Technologies to Enhance XCELlence in the in [12] using meta-heuristic algorithms. The same pricing
Region of Western Macedonia” (MIS 5047197) under the Action
“Reinforcement of the Research and Innovation Infrastructure”, funded by
model is also utilized by an EMS model proposed in [13] to
the Operational Programme “Competitiveness, Entrepreneurship and minimize both the electricity cost and prosumer’s discomfort.
Innovation” (NSRF 2014-2020) and co-financed by Greece and the Energy arbitrage and electricity bill alleviation is applied by
European Union (European Regional Development Fund). the EMS described in [14]. This model is formulated as mix
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integer linear programming (MILP) approach and grid operation. For this reason, OF2 is developed to minimize
incorporates the IBR tariff to make the EMS applicable under the power transactions with the grid, avoiding high values of
high consumption. The main disadvantage of these imported and exported power. According to [7], the
approaches is that they don’t limit the power extracted to the mathematical formulation of OF2 is presented in (3):
grid, thus concerns are raised regarding reverse power flow
OF2 = t ( Pt imp + Pt exp ) (3)
T 2
issues in networks with high PV penetration. Finally, the
authors in [15] propose an EMS to mitigate the high exported
power by applying an external cost, though this approach does where Pt exp refers to the power exported to the grid due to the
not ensure the demand peaks reduction.
excess power from the PV production.
In this paper, a residential EMS for prosumers is proposed
In contrast to previous OFs, OF3 aims exclusively at the
with the goal to manage the flexibility offered by schedulable
minimization of electricity cost, considering both the
appliances and BESS in order to maximize the prosumer’s
purchased and the selling energy. The mathematical
financial benefits and shave the peaks of the power
formulation of this approach is presented in (4):
transactions with the grid. In this way, the prosumer is capable
of supporting the grid operation, handling both the high OF3 = t ( Etimp ⋅ ptp ) − t ( Etexp ⋅ pts ) (4)
T T
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respectively. Additionally, K is the total number of energy The power transactions between the prosumer and the grid
packets for the imported energy. are derived from the total consumption considering: (a) both
schedulable and basic loads, and (b) PV output and BESS’s
charging and discharging power. Therefore, the traded power
is calculated as presented in (9):
L
Pt grid = Pt ch − Pt dich + Pt bas + ( Pl sc ⋅ xl ,t ) − Pt PV (9)
l =1
grid
where Pt is the power transactions with the grid at t, Pt ch
dich
and Pt denote the BESS’s charging and discharging power
PV
at t, respectively. Additionally, Pt is the PV power at t.
The power transactions are separated into imported and
exported power as described by (10)-(12):
Pt grid = Pt imp − Pt exp (10)
Fig. 2. Energy packets for imported energy Pt imp ≤ M ⋅ xtG (11)
Subsequently, OF4 aims at a cost-effective operation
scheduling of residential flexible assets with reduced demand Pt exp ≤ M ⋅ (1 − xtG ) (12)
peaks. Nevertheless, this OF does not consider the reduction G
of exported power peaks and its adverse impact on the grid where M is a large number used to linearize the model and xt
operation. On the contrary, OF5 is developed to minimize the is a binary variable that indicates whether there is imported
daily electricity cost by also considering the reduction of both power or not.
the imported and exported power peaks. To do so, OF5
incorporates the IBR tariffs at both the purchased and selling Algorithm I: Determination of exported power limit
price. Hence, the total exported power is divided into energy 1: Set Pexp = 0 and Pimp = 0 for each prosumer in DN
t t
packets according to the predefined thresholds on exported
2: AC power flow analysis is performed
power as described by Fig. 2 for the imported power.
However, in contrast to the purchased price, the selling price 3: iter= 1
is decreased whenever the exported power exceeds the power 4: while there is no exist overvoltage in DN
threshold. In this way, the prosumer will be rewarded less than 5: Set Pt exp = iter ⋅ a ⋅ C pv for each prosumer in DN
expected for the surplus selling energy to the DN. The 6: AC power flow analysis is performed
integration of IBR tariffs at both purchased and selling prices 7: Set iter= iter+1
formulated as presented in (7): 8: end while
OF5 = t , k ( Etimp
, k ⋅ pt , k ) − t , r ( Et , r ⋅ pt , r ) (7)
T ,K p T ,R exp p
2) BESS power:
where Etexp
,r and ptp, r are the magnitudes of the exported In this analysis, the BESS promotes the self-consumption
energy and the selling price in energy packet r at t, and contributes to further exploitation of on-site production.
respectively. Finally, R is the total number of energy packets Thus, the BESS uses exclusively the energy produced by the
for the exported energy. local PV and does not exchange power with the grid. To
ensure that, the BESS power is limited by (13)-(18).
B. Determination of exported power limit home
Specifically, in (13) the power need of the residence ( Pt )
The definition of the exported power threshold is a crucial himp
factor in the effectiveness of the OF5.The core of this approach is determined and is separated to the net demand ( Pt ) and
is to establish the maximum exported power of each residence the PV surplus ( Pt
hexp
) by (14)-(16). In this way, the
in order to protect the smooth operation of the DN and to
minimize the impact on prosumer’s economic benefits. To maximum charging and discharging power of the BESS is
achieve that, this paper proposes an iterative process that constrained by the PV surplus and net demand, respectively.
involves successive power flow analyses, as described in
Pt home = Pt bas + l ( Pl sc ⋅ xl ,t ) − Pt PV (13)
L
Algorithm I. In this way, the power flow analysis is performed
in a repeated process, increasing the exported power of each
prosumer in DN by (8): Pt home = Pt himp − Pt hexp (14)
Pt exp = iter ⋅ a ⋅ C pv (8) Pt himp ≤ M ⋅ xtH (15)
where iter is the iteration number, Cpv is the installed PV
capacity of each prosumer in kWp and α is a coefficient that
Pt hexp ≤ M ⋅ (1− xtH ) (16)
denotes the percentage of Cpv that is exported.
Pt ch ≤ Pt hexp (17)
C. Constraints
1) Power balance: Pt dich ≤ Pt himp (18)
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H 4) IBR tariffs:
where xt is a binary variable that indicates whether there is
The IBR tariffs are implemented in OF4 and OF5 as
PV surplus or not.
described in (28)-(31). The scope of these constraints is to
Furthermore, the BESS operation is, also, limited the divide the total imported or exported energy to the
upper charging and discharging thresholds as presented in (19) corresponding energy packets as shown in Fig. 2. It should be
and (20): clarified that (28) and (29) refer to the imported energy and
are applied on both OF4 and OF5 while (30) and (31) refer to
Pt ch ≤ Pmax
ch
(19) the exported energy and are applied only in OF5.
Etimp = k Et , k (28)
K
Pt dich ≤ Pmax
dich
(20)
ch dich
where Pmax and Pmax are the maximum charging and Etimp imp,max
, k ≤ Ek ⋅ It ,k (29)
discharging power, respectively.
Etexp = r Et , r (30)
R
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Maximum voltage (pu)
Fig. 3. DN layout
Fig. 5. Maximum voltage on DN caused by the increase in exported power
Price (€/ΜWh)
SSR (%)
Fig. 4. Daily electricity prices including the IBR tariffs
Fig. 6. Prosumers’ SSR provided by the implementation of each OF
B. Definition of exported threshold
As described in Algorithm I, the exported power threshold of TABLE I. DAILY ELECTRICITY COST PER OF (€)
each residence is defined by an iterative power flow analysis.
Prosumer No EMS OF1 OF2 OF3 OF4 OF5
In each power flow, we assume that the exported power of 1 11.92 6.31 6.16 5.93 6.08 6.07
each prosumer is uniformly increased by 2%. Fig. 5 illustrates 2 12.00 6.69 6.66 6.24 6.22 6.19
the impact of this process on the highest voltage value in the 3 10.67 6.39 6.45 5.99 6.05 6.07
DN. The results in Fig.5 show that each residence could 4 1.14 -0.96 -0.89 -0.97 -0.97 -0.97
5 0.41 -1.00 -0.98 -1.24 -1.24 -1.24
extract 24% of its rated PV power, without causing 6 11.24 4.54 4.48 4.12 4.28 4.18
overvoltage in the DN. 7 1.91 0.71 0.69 0.64 0.67 0.64
8 2.03 0.67 0.62 0.55 0.62 0.58
C. Simmulation results
The impact of the examined OFs is evaluated through the TABLE II. DAILY ENERGY LOSSES PER OF
perspective of both the prosumers and the DN. On the one
No EMS OF1 OF2 OF3 OF4 OF5
hand, the prosumer’s benefit for each OF is assessed at: (a) Losses (kWh) 90.0 12.7 8.9 13.9 11.1 10.0
building’s SSR, and (b) daily electricity cost. On the other
hand, the DN operation is examined with respect to: (a) DN
power losses, and (b) DN voltage profile. Fig. 6 depicts the
prosumers’ SSR resulting from the implementation of each
OF where it is obvious that all OFs significantly increase the
SSR of each prosumer in relation to the case without EMS
with OF1 being the best while OF3, OF4 and OF5, which aim
to optimize the financial benefits, approximate the highest
SSR. This is because the purchased price is always greater
than the selling price.
In terms of the financial assessment, the electricity cost of
prosumers is calculated by the net power curve resulting from
the EMS’s scheduling, ignoring the IBR tariffs. The IBR
tariffs are used in the optimization process to schedule the
operation of schedulable appliances and the BESS, but they
are neglected when determining the electricity cost. In this
way, the electricity cost is calculated using the same pricing
pattern in all ΟFs, making the financial comparison more
direct and fair. Fig. 7. DN voltage profile caused by (a) without EMS, (b) OF1 (c) OF2, (d)
Table I shows the daily electricity cost for each prosumer OF3 (e) OF4 and (f) OF5
per OF. OF1 and OF2 do not consider financial parameters in
their formulation, thus they provide the higher cost compared is low. This is why OF1 presents the lowest performance in
to the other OFs. Also, OF1 does not consider electricity Table I. Despite the additional constraints applied to OF4 and
tariffs, so it is not interested in shifting the operation of OF5, these OFs approximate the most economical solution
flexible appliances at time intervals when the energy charge which is provided by OF3. To examine the impact of each OF
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