Demand-Side Flexibility Impact on Prosumer Energy System Planning

Apart from numerous technical challenges, the transition towards a carbon-neutral energy supply is greatly hindered by limited economic feasibility of renewable energy sources. This results in their slow and bounded penetration in both commercial and residential sectors that are responsible for over 40% of final energy consumption. This paper aims to demonstrate that combined application of sophisticated planning methodologies at building-level and presents incentive mechanisms for renewables that can result in prosumers, featuring hybrid renewable energy systems (HRES), with economic performance comparable to that of conventional energy systems. The presented research enhances existing planning methodologies by integrating appliance-level demand side management into the decision process and investigates its effect on the planning problem. Moreover, the proposed methodology features an innovative and holistic approach that simultaneously assess electrical and thermal domain in both an isolated and grid-connected context. The analyzed hybrid system consists of solar photovoltaic, wind turbine and battery with thermal supply featuring solar thermal collector and a ground-source heat pump. Overall optimization problem is modeled as a mixed-integer linear program, while ranking of all feasible alternatives is made by the multicriteria decision-making algorithm against several technological, economic, and environmental criteria. A real-life scenario of energy system retrofit for a building in the United Kingdom was employed to demonstrate overall cost savings of 12% in the present market and regulation context.