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Integrating Distributed Energy Resources: Optimal Prosumer Decisions and Impacts of Net Metering Tariffs

Ahmed S. Alahmed, Lang Tong

arXiv 12 Apr 2022 · eess.SY · 4 citations (OpenAlex)

arXiv:2204.06115 · PDF · DOI · OpenAlex · Extracted main text

Abstract

The rapid growth of the behind-the-meter (BTM) distributed generation has led to initiatives to reform the net energy metering (NEM) policies to address pressing concerns of rising electricity bills, fairness of cost allocation, and the long-term growth of distributed energy resources. This article presents an analytical framework for the optimal prosumer consumption decision using an inclusive NEM X tariff model that covers existing and proposed NEM tariff designs. The structure of the optimal consumption policy lends itself to near closed-form optimal solutions suitable for practical energy management systems that are responsive to stochastic BTM generation and dynamic pricing. The short and long-run performance of NEM and feed-in tariffs (FiT) are considered under a sequential rate-setting decision process. Also presented are numerical results that characterize social welfare distributions, cross-subsidies, and long-run solar adoption performance for selected NEM and FiT policy designs.

Citation extraction

75
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159
in-text mentions
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distinct cited
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Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1A. S. Alahmed and L. Tong, “On net energy metering X: Optimal prosum… (2022) On net energy metering X: Optimal prosumer decisions, social welfare, and cross-subsidies self1.000165100%
2T. Sun, L. Tong, and D. Feng, “On the dynamics of distributed energy… (2020) On the dynamics of distributed energy adoption: Equilibrium, stability, and limiting capacity1.000103100%
3CPUC, “Decision revising net energy metering tariff and subtariffs:… (2021) Decision revising net energy metering tariff and subtariffs: Rulemaking 20-08-0201.00083100%
4S. Borenstein, M. Fowlie, and J. Sallee, “Designing Electricity Rate… (2021) Designing Electricity Rates for An Equitable Energy Transition1.00074100%
5Y. Yamamoto, “Pricing electricity from residential photovoltaic syst… (2012) Pricing electricity from residential photovoltaic systems: A comparison of feed-in tariffs, net metering, and net purchase and s…0.87462100%
6R. Boero, S. N. Backhaus, and B. K. Edwards, “The microeconomics of… (2016) The microeconomics of residential photovoltaics: Tariffs, network operation and maintenance, and ancillary services in distribut…0.87452100%
7S. Borenstein and J. B. Bushnell, “Do two electricity pricing wrongs… (2018) Do two electricity pricing wrongs make a right? cost recovery, externalities, and efficiency0.84333100%
8C. P. U. Commission, “Net energy metering (NEM) 2.0 evaluation,” htt… Net energy metering (NEM) 2.0 evaluation0.84333100%
9S. Borenstein, “The private net benefits of residential solar PV: Th… (2015) The private net benefits of residential solar PV: The role of electricity tariffs, tax incentives and rebates0.73732100%
10D. Muñoz-Álvarez, J. F. García-Franco, and L. Tong, “On the efficien… (2018) On the efficiency of connection charges—part II: Integration of distributed energy resources0.64441100%

Showing the top 10 of 76 scored citations.