Optimizing Power Exchange Cost Considering Behavioral Intervention in Local Energy Community

Abstract

In order to encourage energy saving and the adoption of renewable sources, this study provides a comprehensive experimental framework that integrates socioeconomic and behavioral objectives for the local energy community. The experiment aims to find out how successfully using behavioral interventions might encourage customers to save electrical energy and encourage them to adopt renewable energy, e.g., solar photovoltaic energy, in the present case. Using this method, we can calculate the causal impact of the intervention on consumer participation in the local electricity sector. The study uses consumer data on the import and export of electrical power from retailer electricity utilities at a predetermined power exchange price and a midmarket price for local energy community power transactions. The local energy community model simulates the consumption, storage, and export of 20 residential customers who, in different scenarios, are the test subjects of an empirical experiment and embrace electricity conservation and renewable energy. We address the optimization issue of calculating the power exchange cost and revenue in various scenarios and comparing them with the base case cost. The cases are built on the customers’ behavioral interventions’ empirical response. The findings demonstrate that the interaction of socioeconomic and behavioral objectives leads to impressive cost savings of up to 19.26% for energy utility customers. The policy implication is suggested for local energy utilities.

Keywords

• behavioral economics
• cost optimization
• energy community
• energy conservation
• energy economics
• energy policy