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A Study on Flourishing Microgrid Systems Using 2-Step Linear Graduated Price Function

  • Journal of Regional Studies and Development
  • Abbr : JRSD
  • 2014, 23(1), pp.59-90
  • Publisher : Institute for Poverty Alleviation and International Development: IPAID
  • Research Area : Social Science > Area Studies > Regional Studies in general > Comparative / Statistical Regional Studies

Hak Jin Kim 1

1연세대학교

Accredited

ABSTRACT

Efficient powergrid system is one of fundamental social infrastructures forindustrialization. Smartgrid is a power distribution network purporting to advance theefficiency of supply, damand and distirubiton of power using intelligence. For theconstruction of a smartgrid network, a microgrid system--as a small local powernetwork that charges supply, demand and distribution of power in a localarea--plays a critical role to produce power efficiently together with the use ofrenewable energy sources. As a continuent of a smartgrid, it transacts with a powerdistribution firm for its deficiency and surplus of power it produces locally. Thispaper focuses on what pricing policy can help to flourish local microgrid systems ina smartgrid under the graduated pricing scheme. It builds up cost minimizationmodels, whose cost functions reflect the graduated scheme by two-step piecewiselinear price functions, for a microgrid system and a power distribution firm under theassumption of bilateral transaction. It also analyses the quantitative models, andreduces their cost minimizing solutions analytically under the game theoreticframework to understand their decision makings. Using the resulted solutions, itfinally discusses the pricing decisions to encourage the maximum power productionin a microgrid system and suggest some pricing policies.

Citation status

* References for papers published after 2022 are currently being built.