Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/172438 
Year of Publication: 
2017
Series/Report no.: 
HEMF Working Paper No. 04/2017
Publisher: 
University of Duisburg-Essen, House of Energy Markets & Finance, Essen
Abstract: 
With a smart grid environment, flexible load devices and provided local price incentives a more efficient grid usage may be achieved in the future. Bidirectional communication, smart devices and shiftable loads as electric vehicles and heat pumps have the potential to be coordinated with local supply when suitable incentives are provided. This can bring relief especially for distribution grid areas where infeeds from fluctuating renewable energy sources increase. This paper presents a decentralized local pricing mechanism, aiming at local prices that reflect the current load situation. That is in case of congestion a local price, deviating from the wholesale market price, is determined. With an iterative search algorithm suitable prices can be computed without gathering full-fledged bidding data. Simultaneously self-reinforcing effects are avoided. Further on this concept can be implemented rather easily precisely where and when required so that only areas with grid congestion are affected.
Subjects: 
Smart Grid
Real-Time Pricing
Network Pricing
Agent-Based Modeling
Price-Elastic Behavior
Document Type: 
Working Paper

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