New arXiv Preprint

Our paper entitled “Integrating Distributed Energy Resources: Optimal Prosumer Decisions and Impacts of Net Metering Tariffs“ is now available on arXiv:

Paper 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 policy designs.

Paper link:

https://arxiv.org/abs/2204.06115v1



Recent Publication in the IEEE Transactions on Smart Grid

Our paper “On Net Energy Metering X: Optimal Prosumer Decisions, Social Welfare, and Cross-Subsidies“ has been published in the IEEE Transactions on Smart Grid.

The work formalizes the prosumer decision problem under net metering and provides a closed-form characterization of the prosumer consumption decisions. Key structural properties and intuition are acquired from the derived and apriori computed threshold policy.

The paper abstract is given below:

“We introduce NEM X, an inclusive retail tariff model that captures features of existing net energy metering (NEM) policies. It is shown that the optimal prosumer decision has three modes: (a) the net-consuming mode where the prosumer consumes more than its behind-the-meter distributed energy resource (DER) production when the DER production is below a predetermined lower threshold, (b) the net-producing mode where the prosumer consumes less than its DER production when the DER production is above a predetermined upper threshold, and (c) the net-zero energy mode where the prosumer's consumption matches to its DER generation when its DER production is between the lower and upper thresholds. Both thresholds are obtained in closed-form. Next, we analyze the regulator's rate-setting process that determines NEM X parameters such as retail/sell rates, fixed charges, and price differentials in time-of-use tariffs' on and off-peak periods. A stochastic Ramsey pricing program that maximizes social welfare subject to the revenue break-even constraint for the regulated utility is formulated. Performance of several NEM X policies is evaluated using real and synthetic data to illuminate impacts of NEM policy designs on social welfare, cross-subsidies of prosumers by consumers, and payback time of DER investments that affect long-run DER adoptions.“

New Article: "Does CPUC’s PD (NEM 3.0) Stall Rooftop Solar Adoption?"

A new blog article is added to my medium page: “Does CPUC’s PD (NEM 3.0) Stall Rooftop Solar Adoption?”

Have a read at: Does CPUC’s PD (NEM 3.0) Stall Rooftop Solar Adoption?

My medium webpage can be reached by clicking the green icon below.

PSERC Presentation: On Net Metering Policies: Welfare and Subsidy Analysis

Our work entitled “ On Net Energy Metering X: Optimal Prosumer
Decisions, Social Welfare, and Cross-subsidies“ was presented at PSERC (Presentation, ArXiv).

The presentation was well attended with over 210 attendees!

An abstract of the work is given below:

We introduce NEM X, an inclusive retail tariff model that captures features of existing net energy metering (NEM) policies. It is shown that the optimal prosumer decision has three modes: (a) the net-consuming mode where the prosumer consumes more than its behind-the-meter distributed energy resource (DER) production when the DER production is below a predetermined lower threshold, (b) the net-producing mode where the prosumer consumes less than its DER production when the DER production is above a predetermined upper threshold, and (c) the net-zero energy mode where the prosumer's consumption matches to its DER generation when its DER production is between the lower and upper thresholds. Both thresholds are obtained in closed-form. Next, we analyze the regulator's rate-setting process that determines NEM X parameters such as retail/sell rates, fixed charges, and price differentials in ToU tariffs' on and off-peak periods. A stochastic Ramsey pricing program is formulated that maximizes social welfare subject to the revenue break-even constraint for the regulated utility. Performance of NEM X policies is evaluated using real and synthetic data to illuminate impacts of NEM policy designs on social welfare, cross-subsidies of prosumers by consumers, and payback time of DER investments that affect long-run DER adoptions.

Accepted Conference Paper at PSGEC2021

Our conference paper entitled “Hybrid Top-Down and Bottom-Up Approach for Investigating Residential Load Compositions and Load Percentages is accepted at the 2021 Power System And Green Energy Conference (PSGEC 2021), Shanghai, China

The paper is abstract is given below:

Load points are one of the most vital parts of power systems. Due to the new load forms and programs introduced in the demand side, the load serving entities (LSEs) no longer deal with lump loads, but rather with more dynamic, rational and price elastic loads. The high inter-temporal and behavioral variability of the load profile makes it almost impossible for utilities and system operators to expect the demand curve with the needed accuracy. A sound granularity of the load compositions and consumption percentages and patterns throughout the year is essential for avoiding energy losses, designing demand side management (DSM) programs and ensuring proper adjustments of electricity rates. In this paper, a simplistic model that can be followed by system operators to initially understand the customers consumption pattern and the household load structure is proposed. A top-down approach is combined and matched with a detailed bottom-up one, to extract load compositions and percentages. Real and local load profiles integrated with household statistical data such as device time of use (ToU), number of device units per house and activities exercised in households are all included in the model. The main results of the paper show the load composition in residential demand and the percentage of such composition under seasonal-based scenarios.

Attended the 2019 PSERC IAB Meeting

Pleased to attend the PSERC Industry Advisory Board Meeting (IAB) that was held in Richmond, VA between 4 - 6 of December. The meeting gathered industry members, faculty, and students who are interested in power system engineering. Challenges and opportunities in electrification, decarbonization and digitalization were discussed. I enjoyed the informal networking opportunities with the top-notch researchers in the meeting.

Many thanks to my advisor Professor. Tong for enabling me to participate. The thanks are also extended to Dominion Energy Company and Dr. Anna Rosa Lampis for the great organization of the event.