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Co-Optimizing Distributed Energy Resources under Demand Charges and Bi-Directional Power Flow

2025/03/10 by Gulai Shen, Yang, Ruixiao, Shen, Gulai +4 · 1 citation
Engineering · #Electric Vehicles and Infrastructure #FOS: Electrical engineering #Smart Grid Energy Management #Systems and Control (eess.SY) #electronic engineering #information engineering

paper · pdf · doi:10.48550/arxiv.2503.07907

openalex publication_date 2025/03/10 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/28

Abstract

We address the co-optimization of behind-the-meter (BTM) distributed energy resources (DER), including flexible demands, renewable distributed generation (DG), and battery energy storage systems (BESS) under net energy metering (NEM) frameworks with demand charges. We formulate the problem as a stochastic dynamic program that accounts for renewable generation uncertainty and operational surplus maximization. Our theoretical analysis reveals that the optimal policy follows a threshold structure. Finally, we show that even a simple algorithm leveraging this threshold structure performs well in simulation, emphasizing its importance in developing near-optimal algorithms. These findings provide crucial insights for implementing prosumer energy management systems under complex tariff structures.

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