Self-consumption groups and the optimal management of storage
We study the optimal management of a storage device owned by a self consumption group that aims to minimize power consumption costs. We suppose that the group has a total installed photovoltaic capacity and produces energy according to a certain stochastic process. The decision of how to manage the storage device is up to a group administrator. The administrator apply the join decision to either store part of the photovoltaic energy production and sell the remaining energy at the electricity spot price, or discharge part of the power stored in the device and sell that power in the electricity market. Inspired by the new directives promoting incentives for energy transition and renewable power production, we assume that the group receives a monetary incentive for the shared energy. The shared energy is defined as the minimum between the power bought from the grid to satisfy the group's power demand and the energy sold to the market, which in this case, is a mix between the part of the photovoltaic production that is not store and part of the power discharged from the device. We model the problem as a dynamic stochastic optimal control problem, where the optimal strategy is the join decision store-discharge which minimize the group consumption costs.
Area: CS49 - Analytical and numerical methods for energy transition (Tiziano Vargiolu and Athena Picarelli)
Keywords: Self-consumption group, optimal stochastic control, storage.
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