TY - GEN
T1 - Modeling economic interactions between microgrids and electric utilities
T2 - 2013 IEEE International Conference on Smart Grid Communications, SmartGridComm 2013
AU - Lo Prete, Chiara
AU - Hobbs, Benjamin F.
PY - 2013
Y1 - 2013
N2 - This paper considers the potential development of a microgrid in a market served by a vertically integrated electric utility, regulated based on cost of service. The interaction among the utility, the microgrid developer and consumers potentially representing the microgrid's load is assessed in the framework of cooperative game theory, assuming exchangeable utility. We present scenarios based on different underlying assumptions, showing when microgrid development might be beneficial and how it would affect market prices, costs and benefits to the various parties in the network. We also discuss possible regulatory tools that could be used to align private objectives with social welfare maximization.
AB - This paper considers the potential development of a microgrid in a market served by a vertically integrated electric utility, regulated based on cost of service. The interaction among the utility, the microgrid developer and consumers potentially representing the microgrid's load is assessed in the framework of cooperative game theory, assuming exchangeable utility. We present scenarios based on different underlying assumptions, showing when microgrid development might be beneficial and how it would affect market prices, costs and benefits to the various parties in the network. We also discuss possible regulatory tools that could be used to align private objectives with social welfare maximization.
UR - http://www.scopus.com/inward/record.url?scp=84893603124&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=84893603124&partnerID=8YFLogxK
U2 - 10.1109/SmartGridComm.2013.6688011
DO - 10.1109/SmartGridComm.2013.6688011
M3 - Conference contribution
AN - SCOPUS:84893603124
SN - 9781479915262
T3 - 2013 IEEE International Conference on Smart Grid Communications, SmartGridComm 2013
SP - 522
EP - 527
BT - 2013 IEEE International Conference on Smart Grid Communications, SmartGridComm 2013
Y2 - 21 October 2013 through 24 October 2013
ER -