Abstract
Electricity prosumers are energy subsystems that not only consume, but also produce electricity. They are present in distribution level networks as traditional utility customers who have installed distributed energy resources. They are also present in transmission level networks as large conglomerates own both generation assets and large industrial loads. Previous work on the economics of prosumers has demonstrated that prosumers in a market have incentives to behave more competitively compared to producers and consumers in traditional markets. This paper further explores the behavior of prosumers and their response to market policies including the allocation of network losses and the impact of net metering. We extend a Cournot model of a dual prosumer and find that prosumers respond with higher supply quantities if network losses are allocated to demand base. They respond with lower supply quantities if network losses are allocated to supply base. Allocating network losses to demand base also causes equilibrium prices to decline. Markets where prosumers first satisfy their own load and then sell the balance of electricity to the grid have lower quantities and higher prices compared to markets where prosumers buy and sell at locational marginal price.
Original language | English |
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Title of host publication | 2023 North American Power Symposium, NAPS 2023 |
Publisher | Institute of Electrical and Electronics Engineers Inc. |
ISBN (Electronic) | 9798350315097 |
DOIs | |
State | Published - 2023 |
Event | 2023 North American Power Symposium, NAPS 2023 - Asheville, United States Duration: Oct 15 2023 → Oct 17 2023 |
Publication series
Name | 2023 North American Power Symposium, NAPS 2023 |
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Conference
Conference | 2023 North American Power Symposium, NAPS 2023 |
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Country/Territory | United States |
City | Asheville |
Period | 10/15/23 → 10/17/23 |
Funding
This manuscript has been authored by UT-Battelle, LLC under Contract No. DE-AC05-00OR22725 with the U.S. Department of Energy. The United States Government retains and the publisher, by accepting the article for publication, acknowledges that the United States Government retains a nonexclusive, paid up, irrevocable, world-wide license to publish or reproduce the published form of this manuscript, or allow others to do so, for United States Government purposes. The Department of Energy will provide public access to these results of federally sponsored research in accordance with the DOE Public Access Plan (http://energy.gov/downloads/doe-public-access-plan).
Keywords
- Cournot
- Smart grid
- distributed energy resources
- market power
- net metering
- network losses
- oligopoly
- prosumers