A Bilevel Model for Voluntary Demand-Side Flexibility in Distribution Grids

28 Pages Posted: 27 Jul 2022

See all articles by Athir Nouicer

Athir Nouicer

Florence School of Regulation/ KU Leuven University

Leonardo Meeus

European University Institute; European University Institute - Robert Schuman Centre for Advanced Studies (RSCAS)

Erik Delarue

KU Leuven

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Abstract

This paper develops a bi-level optimization model for voluntary demand-side flexibility. The Distribution System Operator, in the Upper Level, maximizes welfare by investing in the network and setting the flexibility compensation. Consumers, in the Lower Level, can be prosumers and commercial consumers that invest in rooftop solar and batteries and offer demand-side flexibility, or passive consumers which cannot invest in flexible technologies but still can offer their load flexibility. We find that voluntary demand-side flexibility increases welfare and allows network investment savings and its benefits reach all types of consumers. Such benefits can be influenced with the flexibility compensation design.

Keywords: Bi-level modelling, Voluntary demand-side flexibility, Distribution network investment

Suggested Citation

Nouicer, Athir and Meeus, Leonardo and Delarue, Erik, A Bilevel Model for Voluntary Demand-Side Flexibility in Distribution Grids. Available at SSRN: https://ssrn.com/abstract=4173964 or http://dx.doi.org/10.2139/ssrn.4173964

Athir Nouicer (Contact Author)

Florence School of Regulation/ KU Leuven University ( email )

Belgium
50133 (Fax)

Leonardo Meeus

European University Institute ( email )

Fiesole, Tuscany
Italy

European University Institute - Robert Schuman Centre for Advanced Studies (RSCAS) ( email )

Villa La Fonte, via delle Fontanelle 18
50016 San Domenico di Fiesole
Florence, Florence 50014
Italy

Erik Delarue

KU Leuven ( email )

Oude Markt 13
Leuven, Vlaams-Brabant 3000
Belgium

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