A New Pricing Scheme for Controlling Energy Storage Devices in Future Smart Grid

Improvement of the overall efficiency of energy infrastructure is one of the main anticipated benefits of the deployment of smart grid technology. Advancement in energy storage technology and two-way communication in the electric network are indispensable components to achieve such a vision, while e...

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Main Authors: Jingwei Zhu, Michael Z. Q. Chen, Baozhu Du
Format: Article
Language:English
Published: Wiley 2014-01-01
Series:Journal of Applied Mathematics
Online Access:http://dx.doi.org/10.1155/2014/340842
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author Jingwei Zhu
Michael Z. Q. Chen
Baozhu Du
author_facet Jingwei Zhu
Michael Z. Q. Chen
Baozhu Du
author_sort Jingwei Zhu
collection DOAJ
description Improvement of the overall efficiency of energy infrastructure is one of the main anticipated benefits of the deployment of smart grid technology. Advancement in energy storage technology and two-way communication in the electric network are indispensable components to achieve such a vision, while efficient pricing schemes and appropriate storage management are also essential. In this paper, we propose a universal pricing scheme which permits one to indirectly control the energy storage devices in the grid to achieve a more desirable aggregate demand profile that meets a particular target of the grid operator such as energy generation cost minimization and carbon emission reduction. Such a pricing scheme can potentially be applied to control the behavior of energy storage devices installed for integration of intermittent renewable energy sources that have permission to grid connection and will have broader applications as an increasing number of novel and low-cost energy storage technologies emerge.
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spelling doaj-art-28951da289a449ac8a8f9b9a3aa7afbe2025-08-20T02:03:54ZengWileyJournal of Applied Mathematics1110-757X1687-00422014-01-01201410.1155/2014/340842340842A New Pricing Scheme for Controlling Energy Storage Devices in Future Smart GridJingwei Zhu0Michael Z. Q. Chen1Baozhu Du2Department of Mechanical Science and Engineering, University of Illinois at Urbana-Champaign, IL 61801, USADepartment of Mechanical Engineering, The University of Hong Kong, Hong KongSchool of Automation, Nanjing University of Science and Technology, Nanjing 210094, ChinaImprovement of the overall efficiency of energy infrastructure is one of the main anticipated benefits of the deployment of smart grid technology. Advancement in energy storage technology and two-way communication in the electric network are indispensable components to achieve such a vision, while efficient pricing schemes and appropriate storage management are also essential. In this paper, we propose a universal pricing scheme which permits one to indirectly control the energy storage devices in the grid to achieve a more desirable aggregate demand profile that meets a particular target of the grid operator such as energy generation cost minimization and carbon emission reduction. Such a pricing scheme can potentially be applied to control the behavior of energy storage devices installed for integration of intermittent renewable energy sources that have permission to grid connection and will have broader applications as an increasing number of novel and low-cost energy storage technologies emerge.http://dx.doi.org/10.1155/2014/340842
spellingShingle Jingwei Zhu
Michael Z. Q. Chen
Baozhu Du
A New Pricing Scheme for Controlling Energy Storage Devices in Future Smart Grid
Journal of Applied Mathematics
title A New Pricing Scheme for Controlling Energy Storage Devices in Future Smart Grid
title_full A New Pricing Scheme for Controlling Energy Storage Devices in Future Smart Grid
title_fullStr A New Pricing Scheme for Controlling Energy Storage Devices in Future Smart Grid
title_full_unstemmed A New Pricing Scheme for Controlling Energy Storage Devices in Future Smart Grid
title_short A New Pricing Scheme for Controlling Energy Storage Devices in Future Smart Grid
title_sort new pricing scheme for controlling energy storage devices in future smart grid
url http://dx.doi.org/10.1155/2014/340842
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