Optimal Design of Retailer-Prosumer Electricity Tariffs Using Bilevel Optimization

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Publication Details

Author(s): Grimm V, Orlinskaya G, Schewe L, Schmidt M, Zöttl G
Publication year: 2019
Language: English


Abstract

We compare various flexible tariffs that have been proposed to
cost-effectively govern a prosumer's electricity management - in
particular time-of-use (TOU), critical-peak-pricing (CPP), and a
real-time-pricing tariff (RTP). As the outside option, we consider a
fixed-price tariff that restricts the specific characteristics of TOU,
CPP, and RTP, so that the flexible tariffs are at least as profitable
for the prosumer as the fixed-price tariff. We propose bilevel models to
determine the optimal interplay between the retailer's tariff design
and the prosumer's decisions on using the storage, on consumption, and
on electricity purchases from as well as electricity sales to the grid.
The single-level reformulations of the considered bilevel models are
computationally highly challenging optimization problems since they,
e.g., combine bilinearities and mixed-integer aspects for modeling
certain tariff structures. Based on a computational study using
real-world data, we find that RTP increases retailer profits, however,
shifts all price risk to the prosumer. TOU and CPP only yield mild
additional retailer profits and, due to the multiplicity of optimal
plans on the part of the prosumer, imply uncertain revenues for the
retailer.


FAU Authors / FAU Editors

Grimm, Veronika Prof. Dr.
Lehrstuhl für Volkswirtschaftslehre, insbesondere Wirtschaftstheorie
Orlinskaya, Galina
Economics - Discrete Optimization - Mathematics (EDOM)
Schewe, Lars PD Dr.
Economics - Discrete Optimization - Mathematics (EDOM)
Schmidt, Martin Prof. Dr.
Juniorprofessur für Optimierung von Energiesystemen
Zöttl, Gregor Prof. Dr.
Professur für Volkswirtschaftslehre


How to cite

APA:
Grimm, V., Orlinskaya, G., Schewe, L., Schmidt, M., & Zöttl, G. (2019). Optimal Design of Retailer-Prosumer Electricity Tariffs Using Bilevel Optimization.

MLA:
Grimm, Veronika, et al. Optimal Design of Retailer-Prosumer Electricity Tariffs Using Bilevel Optimization. 2019.

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Last updated on 2019-31-07 at 17:39