Operating-Envelopes-Aware Decentralized Welfare Maximization for Energy Communities: Preprint

Ahmed Alahmed, Guido Cavraro, Andrey Bernstein, Lang Tong

Research output: Contribution to conferencePaper


We propose an operating-envelope-aware, prosumer-centric, and efficient energy community that aggregates individual and shared community distributed energy resources downstream of a regulated distribution system operator's (DSO) net energy metering revenue meter. Due to the elevated risk of grid constraint violations and to ensure safe network operation, the DSO imposes dynamic export and import limits, known as dynamic operating envelopes, on end-users' revenue meters. Given the operating envelopes, the proposed community market mechanism maximizes the community's social welfare in a decentralized fashion while every community member abides by its own operating envelopes. We show that the proposed market mechanism conforms with the cost-causation principle and guarantees community members a surplus level no less than their maximum surplus when they autonomously face the DSO. Lastly, a numerical study is implemented to showcase and compare the community's welfare under the proposed operating-envelopes-aware mechanisms to others, including the welfare of customers under the DSO's regime.
Original languageAmerican English
Number of pages11
StatePublished - 2023
EventAllerton Conference - Monticello, Illinois
Duration: 26 Sep 202329 Sep 2023


ConferenceAllerton Conference
CityMonticello, Illinois

Bibliographical note

See NREL/CP-5D00-88523 for paper as published in proceedings

NREL Publication Number

  • NREL/CP-5D00-87669


  • distributed energy resources aggregation
  • energy community
  • mechanism design
  • net metering
  • operating envelopes
  • pricing mechanism
  • transactive energy system


Dive into the research topics of 'Operating-Envelopes-Aware Decentralized Welfare Maximization for Energy Communities: Preprint'. Together they form a unique fingerprint.

Cite this