Government Incentive Contracts for Microgrid Users

Yu, Guanyi; Lin, Qiang; Qi, Xiaoqian

doi:10.3390/en14040994

Cited by 5 publications

(3 citation statements)

References 37 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…So TSO even will give subsidies to MGs. As a case study, [40] reports assigning subsidies to an energy storage project in China with a 5 MWh lithium and a 20 MWh lead-acid energy storage system. In our study, peak shaving and annual electricity cost reduction have been considered factors for allocating the budget to the CES investment.…”

Section: Approach Overview a Regulatory Considerationmentioning

confidence: 99%

Cloud Energy Storage Investment by Collaboration of Microgrids for Profit and Reliability Enhancement Considering a TSO-DSO Yearly Reward

Haghighi

Jalalzad²,

Salehizadeh

et al. 2023

IEEE Access

View full text Add to dashboard Cite

A shared pool of grid-scale storage resources called Cloud Energy Storage (CES) can bring substantial benefits to the economical and reliable operation of MGs. However, the investment cost of CES may not be affordable for a single microgrid (MG). As a solution, we propose an approach in which neighboring microgrids in a distribution network collaborate and form a multi-microgrid (multi-MG) to install a shared CES to increase their profit and improve their reliability. Different investment scenarios are evaluated by considering the yearly reward from TSO and DSO. For each of the investment scenarios, TSO and DSO give a yearly reward based on the contribution of CES in peak-shaving and distribution network operation yearly cost reduction. Afterward, a decision table is provided in which, for all investment scenarios, profit, reliability index based on expected energy not supplied (ENS), and TSO-DSO yearly reward are determined. Finally, the microgrids select one of the investment scenarios using a multi-attribute decisionmaking approach. Simulation results of a case study validate the effectiveness of the proposed collaborative decision-making framework in increasing the economic value of CES investment, reliability enhancement in multi-MG, and peak-shaving.

show abstract

Section: Approach Overview a Regulatory Considerationmentioning

confidence: 99%

Cloud Energy Storage Investment by Collaboration of Microgrids for Profit and Reliability Enhancement Considering a TSO-DSO Yearly Reward

Haghighi

Jalalzad²,

Salehizadeh

et al. 2023

IEEE Access

View full text Add to dashboard Cite

show abstract

“…Yu et al used the principal-agent theory to find an optimal value of subsidy between the government and microgrid users for the energy storage. They concluded that an optimal strategy for the government is to provide tailored incentive to the microgrid users for energy storage [72]. Liang et al use the principal-agent theory for the building sector energy efficiency retrofit (EER) and explain the agency problem that exists between the government and the building owners.…”

Section: Literature Reviewmentioning

confidence: 99%

A Principal-Agent Approach for the Effective Design of a Renewable Energy Incentive for a Heavily Subsidized Residential Sector: The Case of Qatar

et al. 2023

View full text Add to dashboard Cite

Qatar's per capita electricity consumption is one of the highest in the world, mainly due to the availability of heavily subsidized electricity. The residential sector alone accounts for 60% of produced electricity. The effectiveness of imposing regulatory measures that aim to reduce consumption, such as carbon pricing and rebates, depends on the design of the introduced policy, region dynamics, and population characteristics. Using principal-agent theory, this study addresses the agency problem between the government and households by proposing a policy that aims to incentivize households to shift towards renewable energy sources and reduce their overall energy demand. The study quantifies the potential impact of the policy over a period of five years and estimates that 495 GWh of electricity could be saved, resulting in a significant reduction of 203,710 Tons of CO2e emissions. The cost of implementing the policy is estimated to be 0.838 billion Qatari riyals. The effect of varying model parameters on incentive design is investigated, and a detailed financial analysis is conducted based on the * a, t represents the dependence of variable on action and/or time

show abstract

“…Zhang, Wang, and Chai found that government subsidies provided to new energy taxis and special vehicles have high subsidy efficiency (Zhang et al, 2020;Nie et al, 2021). Yu, Lin, and Qi found that government subsidies are more efficient when micro-grid users do not hide their private information, and the adverse selection problem reduces the subsidy efficiency (Yu et al, 2021). Decarolis, Polyakova, and Ryan found that an efficient government subsidy mechanism should have three characteristics: maintaining the marginal elasticity of demand, limiting the influence of market forces, and ensuring the link between price and marginal cost (Decarolis et al, 2020).…”

Section: Literature Reviewmentioning

confidence: 99%

Study of the retreating product subsidy policy based on technology thresholds of new energy vehicle consumers

et al. 2022

View full text Add to dashboard Cite

The new energy vehicle (NEV) product subsidy policy did not achieve a satisfactory effect on encouraging enterprise R&D as the government ignored the consumer technology thresholds—the minimum requirements of NEV consumers on a specific technology or performance of NEV. We built a game model under subsidies among the government, NEV companies, and NEV consumers considering NEV consumer characteristics such as technology thresholds. We solved the optimal retreating product subsidy policy of the government. We also analyzed the incentive effect, efficiency, and application scope of product subsidy policies and the impacts of the technology thresholds on them. We found that the government should subsidize NEV firms with medium R&D ability and encourage them to upgrade NEV technical level to the upper limit in the current stage or the highest level under financial constraints. The government should gradually reduce the unit subsidy until withdrawn with the improvement of the R&D ability of NEV firms. The technology thresholds increase the optimal unit subsidy and decrease the subsidy efficiency. Furthermore, the retreating policy is a cherry-picking subsidy method that causes companies with lower R&D ability to drop R&D.

show abstract

Government Incentive Contracts for Microgrid Users

Cited by 5 publications

References 37 publications

Cloud Energy Storage Investment by Collaboration of Microgrids for Profit and Reliability Enhancement Considering a TSO-DSO Yearly Reward

Cloud Energy Storage Investment by Collaboration of Microgrids for Profit and Reliability Enhancement Considering a TSO-DSO Yearly Reward

A Principal-Agent Approach for the Effective Design of a Renewable Energy Incentive for a Heavily Subsidized Residential Sector: The Case of Qatar

Study of the retreating product subsidy policy based on technology thresholds of new energy vehicle consumers

Contact Info

Product

Resources

About