Contracting Strategy for Consumers With Distributed Energy Resources in the Liberalized Electricity Market

Author(s)

Cesini Silva, Leandro J. ; Guzman, Cindy P. ; Rider, Marcos J.

• Document type: Journal article
• Source: IEEE ACCESS; v. 10, p. 11-pg., 2022-01-01.

Abstract

The rapid growth of distributed energy resources (DERs) and the new trends related to the electricity market can represent economic advantages for consumers; nevertheless, these trends can bring economic risks, such as high prices when contracting, and the inability to forecast information related to offers and demand. A contracting strategy is essential to minimize possible financial losses due to consumer exposure in the liberalized electricity market. This paper proposes a contracting strategy based on consumption forecasting and a pricing methodology to optimize the contract portfolio for consumers with DERs. A consumer with a photovoltaic system and battery storage system has been considered to model the contracting strategy through a mathematical programming approach developed in four stages; the first and second stages are nonlinear programming problems, the third stage is linear programming problem, and the last stage is mixed-integer linear programming problem. The results of the case study, considering a real consumer with and without DERs, show that the strategy successfully minimized consumer exposure in the electricity market, since with operation of DERs was reduced by 45.8% the energy consumption from the main grid and by 49.7% the need for contracting, optimizing the average price of the contract portfolio and making it possible to determine an optimal contracting strategy. (AU)

• FAPESP's process: 17/21752-1 - Mathematical Models and Moderns Solution Techniques for the Planning of the Expansion and Operation of Electrical Energy Systems
• Grantee: Marcos Julio Rider Flores
• Support Opportunities: Regular Research Grants