Optimal design of distributed energy systems for enhanced energy flexibility and the impacts of the evolving electricity market prices

To achieve the carbon-neutrality goal, distributed energy systems (DESs) with active energy storage are gaining popularity for utilizing demand-side energy flexibility. However, how would the optimal design of energy-flexible DESs evolve with the evolving electricity market prices towards the carbon neutrality has not been well understood in the literature. In this study, the optimal designs of energy-flexible DESs in subtropical regions under the evolving electricity market prices are investigated. The parameters of electricity market prices concerned include the peak-to-valley ratio of Time-of-Use (ToU) tariff and the incentives for providing grid ancillary services. The results indicate that the increase of the peak-to-valley ratio and ancillary service prices will decrease the annualized life cycle cost of the energy-flexible DESs and influence the optimal capacities of the DES components, especially the energy storages.