Abstract
Efficient pricing mechanisms that forms appropriate pricing signals are crucial when introducing energy storage to energy communities and local electricity markets. However, the lack of standardised testing makes comparing the performance of existing pricing mechanisms challenging. In this study, we evaluate three pricing mechanisms: the supply-demand ratio mechanism, the consensus alternating direction of multipliers method and the equilibrium approach, under identical conditions. The analysis focuses on the economic impacts of these mechanisms on different customer types within the local electricity market - specifically, flexible and inflexible prosumers, and consumers. Notably, we find that the supply-demand ratio pricing mechanism, in its current form, is not viable for flexible prosumers due to negative cost-savings compared to direct trade with the retailer. The equilibrium approach demonstrates the best overall performance.
| Original language | English |
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| Title of host publication | 20th International Conference on the European Energy Market, EEM 2024 - Proceedings |
| Publisher | IEEE Computer Society |
| ISBN (Electronic) | 9798350381740 |
| DOIs | |
| Publication status | Published - 8 Aug 2024 |
| Event | 20th International Conference on the European Energy Market, EEM 2024 - Istanbul, Turkey Duration: 10 Jun 2024 → 12 Jun 2024 |
Publication series
| Name | International Conference on the European Energy Market, EEM |
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| ISSN (Print) | 2165-4077 |
| ISSN (Electronic) | 2165-4093 |
Conference
| Conference | 20th International Conference on the European Energy Market, EEM 2024 |
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| Country/Territory | Turkey |
| City | Istanbul |
| Period | 10/06/24 → 12/06/24 |
Bibliographical note
Publisher Copyright:© 2024 IEEE.
Keywords
- Energy community
- Energy storage
- Local electricity market
- Pricing mechanisms
- Social welfare