Determining the optimal trading price of electricity for energy consumers and prosumers

Jongbaek An, Taehoon Hong, Minhyun Lee

Research output: Journal article publicationReview articleAcademic researchpeer-review

Abstract

This study proposed an optimal trading price of electricity by considering electricity billing system and corresponding government policies in South Korea. To this end, this study calculated the maximum and minimum trading prices of electricity by defining the profit structure from the viewpoint of the energy consumer and prosumer, based on which the optimal trading price of electricity was derived from a genetic algorithm (GA) and Pareto optimal solution. The main results of this study can be summarized as follows. First, from the perspective of the energy prosumer, the lower the self-use rate and the higher the monthly electricity usage, the higher the optimal trading price of electricity, and the higher the number of tradable-energy consumers in the monthly electricity usage was, the greater the scope of the optimal trading price of electricity. Second, the higher the monthly electricity usage, the higher the optimal trading price of electricity, and the higher the number of tradable-energy prosumers in the monthly electricity usage, the greater the scope of the optimal trading price of electricity. The results of this study can be used to establish an energy prosumer's electricity usage strategy, improve the electricity billing system based on the optimal trading price of electricity, and establish a policy on the subsidy to be offered for the installation of solar photovoltaic (PV) panels.

Original languageEnglish
Article number111851
JournalRenewable and Sustainable Energy Reviews
Volume154
DOIs
Publication statusPublished - Feb 2022

Keywords

  • Distributed solar generation
  • Electricity trading market
  • Energy prosumer
  • Levelized cost of electricity
  • Optimal trading price of electricity
  • Peer to peer electricity trading

ASJC Scopus subject areas

  • Renewable Energy, Sustainability and the Environment

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