We propose a social welfare maximizing market mechanism for an energy community that aggregates individual and community-shared energy resources under a general net energy metering (NEM) policy. Referred to as Dynamic NEM (D-NEM), the proposed mechanism dynamically sets the community NEM prices based on aggregated community resources, including flexible consumption, storage, and renewable generation. D-NEM guarantees a higher benefit to each community member than possible outside the community, and no sub-communities would be better off departing from its parent community. D-NEM aligns each member's incentive with that of the community such that each member maximizing individual surplus under D-NEM results in maximum community social welfare. Empirical studies compare the proposed mechanism with existing benchmarks, demonstrating its welfare benefits, operational characteristics, and responsiveness to NEM rates.
@article{arxiv.2306.13677,
title = {Dynamic Net Metering for Energy Communities},
author = {Ahmed S. Alahmed and Lang Tong},
journal= {arXiv preprint arXiv:2306.13677},
year = {2024}
}
Comments
19 pages, 7 figures, 2 tables. arXiv admin note: text overlap with arXiv:2211.09360. Accepted for publication at the IEEE Transactions on Energy Markets, Policy and Regulation