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Students showcasing research posters at the 2015 GCEP Symposium

SmartGrid Seminar: Lang Tong, Efficiency of Connection Charges for Distribution Systems with Distributed Energy Resources

December 1, 2016 - 1:30pm to 2:30pm
Y2E2 111

Priority seating for Stanford students registered in this seminar course.

All Stanford students, faculty, alumni and staff are welcome to attend.

Event Sponsor: 
PRECOURT INSTITUTE FOR ENERGY, TOMKAT CENTER FOR SUSTAINABLE ENERGY, ENERGY AND ENVIRONMENT AFFILIATES PROGRAM, DEPARTMENT OF CIVIL AND ENVIRONMENTAL ENGINEERING, DEPARTMENT OF ELECTRICAL ENGINEERING
Contact Email: 
akalra@stanford.edu

Abstract: The advent of several disruptive innovations in distributed renewable generation, battery storage, and smart meter technology is transforming the electric power industry. A rising concern of this transformation is the impact of distributed energy resources (DERs) on the financial viability of traditional regulated distribution utilities. In particular, under volumetric and net-metering tariffs, the integration of behind-the-meter DERs, including storage systems, could compromise the ability of grid operators to recover their fixed operational and capital expenditures, which leads to the so-called “death spiral” hypothesis. In this talk, we examine the role of connection charges for a regulated monopolistic retailer who serves heterogeneous consumers. We examine two DER integration models: (i) the behind-the-meter integration by consumers under a net metering tariff, and (ii) a centralized integration by the retailer. For both cases, we obtain the optimal ex-ante two-part tariff consisting of connection and volumetric charges. The structure of the optimal two-part tariff reveals how the benefits and costs of DERs are allocated optimally across consumers. 

Bio: Lang Tong is the Irwin and Joan Jacobs Professor of Engineering in the School of Electrical and Computer Engineering and the Site Director of Power Systems Engineering Research Center at Cornell University. He received his Bachelor of Engineering degree from Tsinghua University and a Ph.D. from the University of Notre Dame. He was a Postdoctoral Research Affiliate at the Information Systems Laboratory, Stanford University in 1991. His current research focuses on stochastic optimization, data analytics, and economic aspects of smart grid.

About the SmartGrid Seminar: The seminar speakers discuss exciting new ideas and technologies that are changing the electricity industry. The theme of the seminar series is on smart grids and energy systems, with speakers from academic institutions and industry. The hour-long seminars, including ample time for discussion, are held at 1:30 pm every Thursday. We invite you to attend!

This seminar is offered as a 1 unit seminar course, CEE 272T/EE292T for interested students. The course can be repeated for credit.