A project at the Massachusetts Institute of Technology (MIT) in the US is modelling options for pricing decentralized power.
The MIT Energy Initiative (MITEI), in collaboration with Spain’s IIT Comillas, is working with the owner of several utilities in New York state to model how distributed energy resources, including on-site solar photovoltaics (PV), battery energy storage and combined heat and power (CHP), could impact grid reliability and power prices.
The project aims to support New York’s Reforming the Energy Vision programme, which focuses on the regulatory changes necessary to support the state’s changing energy landscape.
‘We use a novel approach to simulating the impact on electricity power systems by modeling, in detail, different market mechanisms, transmission and distribution networks, as well as centralized and distributed energy resources,’ said graduate student Michael Birk, a research assistant on the project.
MITEI is part of the Utility of the Future project, which looks at how both centralized and decentralized power services might be provided in future through alternative business models and diverse regulatory and market contexts.