Make or buy: IT-based decision support for grid imbalance settlement in smarter electricity networks

  • Decision (support) systems are a particularly important type of information system to energy informatics. A key challenge in energy informatics is that electricity supply must be in balance with demand at all times. More volatile renewable energy sources increase the relevance of electricity network balancing, i.e., imbalance settlement. Typically, electricity distribution network operators bought balancing power from external service providers (Buy option). Interestingly, however, more local energy resources help smarter electricity networks develop a Make option, as in our real-world evaluation. Choosing the better decision alternative within the relevant timeframes challenges human decision-making capabilities. Therefore, this research proposes a model-based decision system to improve the operators’ decisions concerning Make or Buy under various levels of data quality represented by availability, granularity, and timeliness. The study reports savings up to 40% of costs for imbalanceDecision (support) systems are a particularly important type of information system to energy informatics. A key challenge in energy informatics is that electricity supply must be in balance with demand at all times. More volatile renewable energy sources increase the relevance of electricity network balancing, i.e., imbalance settlement. Typically, electricity distribution network operators bought balancing power from external service providers (Buy option). Interestingly, however, more local energy resources help smarter electricity networks develop a Make option, as in our real-world evaluation. Choosing the better decision alternative within the relevant timeframes challenges human decision-making capabilities. Therefore, this research proposes a model-based decision system to improve the operators’ decisions concerning Make or Buy under various levels of data quality represented by availability, granularity, and timeliness. The study reports savings up to 40% of costs for imbalance settlement supporting ambitious development efforts by the municipality we study in our real-world evaluation.show moreshow less

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Metadaten
Author:Lars Wederhake, Simon Schlephorst, Florian Zyprian
URN:urn:nbn:de:bvb:384-opus4-1166244
Frontdoor URLhttps://opus.bibliothek.uni-augsburg.de/opus4/116624
ISSN:2520-8942OPAC
Parent Title (English):Energy Informatics
Publisher:Springer International Publishing
Type:Article
Language:English
Date of first Publication:2022/10/24
Publishing Institution:Universität Augsburg
Release Date:2024/11/18
Tag:Decision system; Model-based decision support system; Distribution network; Data quality; Grid imbalance; Information and Computing Sciences
Volume:5
Issue:1
First Page:34
DOI:https://doi.org/10.1186/s42162-022-00217-4
Institutes:Wirtschaftswissenschaftliche Fakultät
Wirtschaftswissenschaftliche Fakultät / Institut für Betriebswirtschaftslehre
Nachhaltigkeitsziele
Nachhaltigkeitsziele / Ziel 7 - Bezahlbare und saubere Energie
Dewey Decimal Classification:3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft
Licence (German):CC-BY 4.0: Creative Commons: Namensnennung (mit Print on Demand)