This article presents an economic model for customer-owned and operated distributed generation facilities operated according to net metered, real-time pricing (RTP). Previous research has demonstrated that within traditional billing and rate structures customer-optimized distributed generation facilities create quantifiable losses for distribution and generation and transmission utilities. Using historical real-time pricing data available on the New England ISO website, a customer-optimized dispatch of distributed generation is constructed so that total consumer costs are minimized. The relative difference of consumer behavior is compared between RTPs with hour-long and a five minute long periods. The results are presented across a range of DG prices, and the utilization and value of the DG resource in this case study is also quantified.
- Advanced Energy Systems Division
Evaluation of Increased Discretization of Real-Time Locational Marginal Prices on Customer-Optimized Distributed Generation
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Duthu, RC, & Bradley, TH. "Evaluation of Increased Discretization of Real-Time Locational Marginal Prices on Customer-Optimized Distributed Generation." Proceedings of the ASME 2014 8th International Conference on Energy Sustainability collocated with the ASME 2014 12th International Conference on Fuel Cell Science, Engineering and Technology. Volume 2: Economic, Environmental, and Policy Aspects of Alternate Energy; Fuels and Infrastructure, Biofuels and Energy Storage; High Performance Buildings; Solar Buildings, Including Solar Climate Control/Heating/Cooling; Sustainable Cities and Communities, Including Transportation; Thermofluid Analysis of Energy Systems, Including Exergy and Thermoeconomics. Boston, Massachusetts, USA. June 30–July 2, 2014. V002T03A007. ASME. https://doi.org/10.1115/ES2014-6617
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