Logo
ScienceStack
Table of Contents
Fetching ...
Sign In

Co-optimizing Behind-The-Meter Resources under Net Metering

Ahmed S. Alahmed, Lang Tong

TL;DR

The paper addresses co-optimizing behind-the-meter storage and deferrable loads under a generalized NEM X tariff with stochastic rooftop generation. It models a finite-horizon MDP where the optimal policy induces a six-threshold DG-dependent load-priority structure, plus a net-zero zone that expands with greater DER flexibility. Key contributions include a formal load-priority ranking, a net-zero.zone quantification across DER compositions, and comparative statics that reveal how tariff parameters and DG output shape decisions, payments, and surplus. Numerical results using real residential data under NEM 3.0 demonstrate sizable surplus gains, higher self-consumption with storage, and strategic implications for how flexibility affects grid interaction and defection risk.

Abstract

We consider the problem of co-optimizing behind-the-meter (BTM) storage and flexible demands with BTM stochastic renewable generation. Under a generalized net energy metering (NEM) policy-NEM X, we show that the optimal co-optimization policy schedules the flexible demands based on a load priority list that defers less prioritized loads to times when the BTM generation is abundant. This gives rise to the notion of a net-zero zone, which we quantify under different distributed energy resources (DER) compositions. We highlight the special case of inflexible demands that results in a storage policy that minimizes the imports and exports from and to the grid. Comparative statics are provided on the optimal co-optimization policy. Simulations using real residential data show the surplus gains of various customers under different DER compositions.

Co-optimizing Behind-The-Meter Resources under Net Metering

TL;DR

The paper addresses co-optimizing behind-the-meter storage and deferrable loads under a generalized NEM X tariff with stochastic rooftop generation. It models a finite-horizon MDP where the optimal policy induces a six-threshold DG-dependent load-priority structure, plus a net-zero zone that expands with greater DER flexibility. Key contributions include a formal load-priority ranking, a net-zero.zone quantification across DER compositions, and comparative statics that reveal how tariff parameters and DG output shape decisions, payments, and surplus. Numerical results using real residential data under NEM 3.0 demonstrate sizable surplus gains, higher self-consumption with storage, and strategic implications for how flexibility affects grid interaction and defection risk.

Abstract

We consider the problem of co-optimizing behind-the-meter (BTM) storage and flexible demands with BTM stochastic renewable generation. Under a generalized net energy metering (NEM) policy-NEM X, we show that the optimal co-optimization policy schedules the flexible demands based on a load priority list that defers less prioritized loads to times when the BTM generation is abundant. This gives rise to the notion of a net-zero zone, which we quantify under different distributed energy resources (DER) compositions. We highlight the special case of inflexible demands that results in a storage policy that minimizes the imports and exports from and to the grid. Comparative statics are provided on the optimal co-optimization policy. Simulations using real residential data show the surplus gains of various customers under different DER compositions.
Paper Structure (23 sections, 4 theorems, 35 equations, 4 figures, 4 tables)

This paper contains 23 sections, 4 theorems, 35 equations, 4 figures, 4 tables.

Table of Contents

  1. Introduction
  2. Problem Formulation and Optimal Decisions
  3. BTM DER Models
  4. Flexible demand
  5. Renewable
  6. Battery storage
  7. NEM X Tariff Model
  8. Prosumer Decision Problem
  9. Optimal Prosumer Decisions
  10. Solution Properties and Special Cases
  11. Load Priority Ranking Rule
  12. Passive Prosumer
  13. Net Zero Zone Quantification
  14. Comparative Statics
  15. Numerical Results
  16. ...and 8 more sections

Key Result

Proposition 1

Under A1-A2, and assuming w.l.o.g that $\underline{d}_k=0, \forall k$, the scheduling of every device $k$ and $t=0,\ldots, T-1$ in any of the three consumption zones, depends on its marginal utility $L_{tk}(\cdot)$. If

Figures (4)

  • Figure 1: Solar+storage prosumer under NEM. The variables of consumption $d$ and DG output $g$ are real and non-negative, whereas storage output $e$ and net consumption $z$ variables are real.
  • Figure 2: Consumption allocation to devices based on marginal utilities.
  • Figure 3: Active (solid) and passive (dashed) SDG prosumers decisions.
  • Figure 4: Surplus gain over active/passive DG prosumers ($\overline{e}=\underline{e}=0.75$kW).

Theorems & Definitions (5)

  • Proposition 1: Load priority ranking rule
  • Proposition 2: Optimal policy under DG-passive demands
  • Definition 1: Net-zero zone length
  • Corollary 1: Net-zero zone length quantification
  • Theorem 1: Comparative statics analysis of NEM X prosumer