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Abstract— This paper provides an energy business decision- active energy towards the Transmission System Operator
making feasible concepts for Distribution System Operator (TSO). Due to this dynamic movement, the Distribution
internal processes concerning renewables' integration. The System Operator (DSO) must compensate for the TSO's high
2020 International Conference on Smart Grids and Energy Systems (SGES) | 978-1-7281-8550-7/20/$31.00 ©2020 IEEE | DOI: 10.1109/SGES51519.2020.00154
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ideas. Therefore, this paper proposed a new view of the Table I. Structure of a business concept analysis after matching the
integration process from the point of view of distribution primer expectations of different participants
company. Elements Description
In the paper, Section 2 performs concept development for Headline Short introduction into concept.
DSO´s internal DM processes regarding integrating renewable
Value Short description of the idea/goal.
technologies on LV and MV levels. Also, the valuation of the
main concepts suitable for the acceptance of all participants. End-user/Customer To whom the service/product is addressed?
segment
Section 3 provides results and discussion. The last, Section 4
concludes the research and has some considerations. Service provider Who offers to end-user/customer?
SWOT analysis What are the strengths, weaknesses,
A. Relative research opportunities, and threats?
In the research field, some proposed business models Financial resources Origin of the investments.
supporting DM defines first-use cases; secondly, their relevant Costs What kind of costs?
stakeholders and actors, and finally develop business
scenarios or concepts for selected use cases (e.g. funded by Other participants Other possible participants of interest or
involved parties into the process.
European Union projects IDEAS and Ambassador). Another
development strategy used building business concepts through
executive workshops with the main stakeholders involved.
Some projects (as EEPOS or eHub Project), describe business A. Stakeholder analysis and selection of major expectations
models and concepts via Osterwalder’s business canvas [1]. In First, understanding stakeholders, who they are, their
this paper author used a similar approach as in the eHub needs and expectations, and how to cover their demand plays
Project, meaning that the study includes only some elements an essential role in every business concept. Misunderstandings
of the model canvas. Besides, this canvas includes strengths, and strict integration procedures lead to decreased interest in
weaknesses, opportunities, and threats (SWOT) analysis. green energy and, ultimately, to failure to achieve EU energy
Also, the selection of the most feasible scenarios relied on goals by 2030. Following tables (Table II and III) describe
multi-decision method described by J.A. Morente-Molinera more detailed stakeholders in the field.
(2020, [2]).
Table II. Stakeholder view in energy business
Combination or extension of different techniques are also Stakeholder Additional description
met in the field. Alizadeh (2019, [3]) combined two models: Residential building Large multi-family
Benefit, Opportunity, Cost, Risk with Analytic Network home; Single-family
Process models. Elkadeema (2019, [4]) combined integrative detached home; Small
DM approach for efficient planning with an extensive techno- multi-family home
economic optimization analysis. Sitorus (2020, [5]) extended End-user (consumer). Commercial building Office; Retail; Hotel;
Shannon Entropy method, and presented the Integrated Can be Prosumer at Special purpose
Constrained Fuzzy Shannon Entropy. the same time. (storage, theater, etc.)
Real Estate Company
Malekpour (2020, [6]) in DM under deep uncertainty providing real estate
defined policies to achieve outcomes of interest. The valuation management
of outcomes based on relevant weights given by crucial
. Heat service Provider
stakeholders and decision makers.
Transmission System
Gherghel (2020, [7]) analyzed and proposed methodology Operator
how to involve the stakeholders into the multiple DM process.
Distribution System
Höfer (2020 [8]) composed a multi-criteria group decision Operator
model that applies Value-Focused Thinking to construct a Service Provider. Can Energy Producers Power, heat or
holistic objective system and uses the Multi-Attribute Utility be Prosumer at the combined technology
Theory a k-means clustering technique to evaluate the energy same time
transition scenarios. Technology
producers
This study includes the stakeholder's view and a DM tool
for DSO's internal process to integrate renewable technologies Energy storage Power, heat or cooling
owners storage
with faster decision time and cost for unusual cases.
Energy broker
Table I presents the structure of the concept development Authorities Regulator Local, national or EU
elements. All proposed business scenarios rely on the Policy Maker
components described in this table.
Investors, researches,
Linear Programming was used for optimizing the DM energy solution
Other interested designers, non-
cost. parties governmental
organizations,
financial institutions
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Table II demonstrates stakeholders in the energy business. of both sides [4]. In many real-life DM problems, acceptable
The main stakeholders are end-users, service providers, and agreements achieved on minimum cost consensus are more
prosumers (as newcomers in that field) who are running the effective and desirable than more time-consuming and
practical actions in the energy business. The authorities will expensive unanimous agreements [4]. Therefore, both degrees
provide regulation, rules, and boundaries. Non-governmental and the cost of the agreement are essential factors in DM.
organizations will give public acceptance for the company. [1]
Other interested parties come from universities, different Table IV. Stakeholder needs and expectations
Stakeholder.
research institutions, energy solution designers, or investors. Energy
All of them can be on a local, national, or EU level. business/DSO Expectations/Needs. Both views included.
Table III illustrates stakeholders from the DSO view, End- The integration process is more comfortable and user-
where the main stakeholders are electricity consumers, user/Consumer friendly web based. Investment costs reduced. Cheaper
renewable energy. Better power supply.
prosumers, and power producers. Both maps have similarities
and differences as the DSO is only an electricity distribution Prosumer The integration process is more comfortable and user-
company at LV and MV levels. friendly web based. Investment cost reduced, and
payback period shortened. Cheaper renewable power.
Table III. DSO´s stakeholder view Distributed Balance in the network´s regular operation. Production
Stakeholder Additional description System Operator and consumption in balance. Investment cost optimized
(DSO) or reduced. Technical voltage losses reduced.
Micro size; Small On-Grid; Off-Grid
size; Medium size ( Transmission Investment costs reduced. Production and consumption in
DSO Consumer 1MW) System Operator balance. Power peak shaving. Independency from other
(TSO) countries.
DSO Prosumer Small size, Medium On-Grid; Off-Grid
size Energy/Power The integration process is more comfortable and user-
producer friendly web based. Energy efficiency improves, and
DSO Producer Small size; Medium On-Grid; Off-Grid therefore investment costs optimized or reduced.
size ( 1MW)
Energy broker/ Predicted use and real use in balance. Optimization of
. Transmission System Medium size (> 1 energy trade [1].
Operator MW); Large size Retailer
Service provider Technology producer Power technology Technology Technology improvement meets market trends and
producer demand. Invent new technologies suitable for grid, where
Power storage owner Power storage the renewals are not planned.
Government Authority (local, CO2 emissions reduced. Energy consumption/wasting
Authorities Regulator Local, national or EU national and EU energy reduced. National and EU goals achieved by 2030.
level) Energy efficiency improved. Maximize the use of (local)
Policy Maker renewable energy production [1].
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This paper describes only two feasible and economically The storage level ܵǡ௧ at the end of period t is based on
reasonable results of the concepts, where the DM consensus storage level ܵǡ௧ିଵ at the end of the previous time period,
under uncertainty is less costly. Besides, the ideas included summed by charging ܵǡ௧ ௨௧
and subtracted by discharging ܵǡ௧
sub-scenes with all possible variations (e.g., DSO is the bank
during period t. Efficiency ratios K , K , and K are used
ௌ ௨௧
owner, when another storage owner is a producer for the same
integration). to model storage losses during storage charge and discharge.
The charging and discharging losses rate are 7%, while self-
Power storages can play an essential role in both topics of discharge daily loss rate is 0.05% [11].
interest. Primary scenarios consist only of power banks with
different ownership types: Storage model is formulated as following:
1. Owner DSO: off-grid and on-grid. ܵǡ௧ ൌ Kǡௌ ܵ
ǡ௧ିଵ
K ܵ െ ܵǡ௧
ǡ௧
௨௧ భ
Kೠ
(1)
ು
2. Owner producer: storage as an addition to existing Ͳ ܵǡ௧ ܵ௫ ǡ (2)
technology, small and medium-scale production. Ͳ
ܵǡ௧ ܵǡ௫ , (3)
3. Owner prosumer: off-grid and on-grid, small and Ͳ ܵǡ௧ ܵ௨௧ǡ௫ ,
௨௧
(4)
medium-scale production/consumption. Ͳ ܵ௫ ܵܨ , (5)
4. Owner third participant: off-grid and on-grid, small ܵ אሼͲǡͳሽǤ (6)
and medium-scale production and consumption.
Constraint (2) means the capacity limit of the storage.
Small-scale means annual consumption of power 1751-
3750 kWh when the medium is from 3751- 8550 kWh. Small Constraints (3) and (4) limit the charging and discharging rate
scale production shows the production of one PV system with of the power bank. Constraints (5) and (6) disable or enable
a capacity of 50 kW. Each concept´s financial part includes the storage by using binary variable ܵ . The letter F means
the power storage hourly based optimization model, where a big number.
the bank is short-term, meaning seconds to maximum one
Table VI. The stand-alone power storage model symbols
hour.
Symbol Description
Energy storage for end-user optimization business model ܵ Stand-alone power storage
examples already exist [9] and were analyzed, therefore, this
ܵǡ௧ Power storage charging during period t
research excluded storage concept with end-user. ௨௧
ܵǡ௧ Power storage discharging during period t
The economic objective in investment planning DM is ܧ Power plant production
௫
much higher than environmental goals [10]; therefore, this ܧ Power overproduction
௫
ܥௌை DSO´s connection point capacity limit
paper describes only two feasible and economically
ܦ Power demand low
reasonable results of the concepts, where the DM consensus ܦ௫ Power demand high
under uncertainty is less costly for all possible involved
parties. The storage is ON (ܵ ሻwhen is the case of ܧ
௫ ௫
or ܥௌை or
ܦ . The discharging starts when ܦ௫ . Time is from
B. Concept 1 and 2: power storage model seconds to maximum hour as the model is hourly based. Such
an approach was chosen due to the restrictions as power
Concept 1describes the case where the bank owner is DSO.
storage is considered to be a producer. DSO is only the
The second scenario includes two storages, each in different
distributor; therefore, it cannot be a producer. The storage is
ownership at the same place of integration. That represents a
used for optimizing the regular work of the grid, for that
situation where is one power plant, but also, DSO and
reason the DSO can be owner of the power bank.
producer integrate the storages, and each of them owns their
DM time minimizing model (Fig. 2 and Table VII)
bank.
illustrates an integration application process.
Power storage model (Fig. 1 and Table VI) includes the
stand-alone storage integration as an off-grid or on-grid
solution in the places where existing voltage problems or ܣ ܻௌை ଷ
ܻௌை
capacity limits are almost reaching its maximum. The issue
of that situation is described in the introduction section of the
paper.
ܰ ܰ
ܵǡ௧
ܰௌை
ܰௌை
ܰ
ܵǡ௧ିଵ ܵ ܵǡ௧
௫
ܴ ܴ ௌை
௨௧
ܵǡ௧
ܲ௫
Fig. 1. Stand-alone power bank model
Fig. 2. Decision-making time minimizing model
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The ready-to-use DM form is used in the cases where the on viable arguments appeared to be 23.69%. Such a result
application is rejected by DSO when the ܰௌை , or by the shows that even with one application, there is a possibility to
optimize DM cost by limiting the time devoted to one case.
producer due to ܰ . Then, the DSO can propose the ܴௌை
concept by integrating the stand-alone power bank. This will
௫
lead to ܲ௫ , ܲ and ܶ .
Savings on decision-making cost. Concept 1
Time usage contains devoted time to controlling and
accepting or rejecting an application ܣ , negotiation time, 35 32.85
contract preparation time, system integration, and re- 30
checking time. The cases with possible conflicts also contain 25
23.69
preparation time for court.
20
841
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In addition to the described concepts, the interesting finding to weight the sustainability criteria of renewable energy technologies
under uncertainty. Renewable and Sustainable Energy Reviews 127
from other not explained scenes showed that even more (2020) 109891
investment needs can optimize the time-consuming DM [6] Malekpour S, Walkerb W.E, J. de Haanc F, Frantzeskakid N, Marchaub
processes. Even one percent of the optimized cost from one V. Bridging Decision Making under Deep Uncertainty (DMDU) and
application could bring a reduction in future investments and Transition Management (TM) to improve strategic planning for
Sustainable Development. Environmental Science and Policy 107 (2020)
labor costs. 158–167
[7] Gherghel A, Teodosiu C, Notarnicola M, De Gisi S. Sustainable design
IV. CONCLUSION AND CONSIDERATION of large wastewater treatment plants considering multi-criteria decision
In a traditional group decision-making method, experts analysis and stakeholders’ involvement. Journal of Environmental
Management 261 (2020) 110158
need to rank a set of alternatives based on their preferences [8] Höfer T, Madlener R. A participatory stakeholder process for evaluating
[2]. In a group decision-making process, experts reach a sustainable energy transition scenarios. Energy Policy 139 (2020)
consensus after discussion and persuasion, requiring a 111277
moderator to spend time and resources to persuade experts to [9] Burger S.P, Luke M. Business models for distributed energy resources:
A review and empirical analysis. Energy Policy 109 (2017) 230-248
change their original opinions [4]. [10] Li R., Wei W., Zhe C., Jiuchun J., Zang W. A review of optimal
In this paper, the most feasible concepts demonstrated the planning active distribution system Models, methods, and future
highest cost reduction already in the DM process. Selected researchers. Aalborg University. 2017. 10.3390/en10111715
two ideas due to the paper format restrictions showed that the [11] Rikkas R. Economic feasibility analysis for a residential building in
Tallinn with high electricity consumption. A case study with suitable
ready-to-use new decision-making process is more effective energy storage for the Estonian climate. 17th International Conference
as it allows to: on the European Energy Market. 16–18 September 2020, Sweden.
• minimize the overall time-consuming integration
process, and possible argues between parties by
implementing the more feasible read-to-use
integration decision process. The DM time
decreased from 114 hours (in Concept 1) and 90
hours (in Concept 2) to 72 hours.
• optimize the overall decision-making cost in
integration DM process. Saving in Concept 1
occurred to be 33% and 23% in Concept 2.
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