Operating-Envelopes-Aware Decentralized Welfare Maximization for Energy Communities

Ahmed Alahmed, Guido Cavraro, Andrey Bernstein, Lang Tong

Research output: Contribution to conferencePaper

1 Scopus Citations


We propose an operating-envelope-aware, prosumer-centric, and efficient energy community that aggregates individual and shared community distributed energy resources and transacts with a regulated distribution system operator (DSO) under a generalized net energy metering tariff design. 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, we propose an incentive-aligned community pricing mechanism under which the decentralized optimization of community members' benefit implies the optimization of overall community welfare. The proposed pricing mechanism satisfies the cost-causation principle and ensures the stability of the energy community in a coalition game setting. Numerical examples provide insights into the characteristics of the proposed pricing mechanism and quantitative measures of its performance.
Original languageAmerican English
Number of pages8
StatePublished - 2023
EventAllerton Conference - Monticello, Illinois
Duration: 26 Sep 202329 Sep 2023


ConferenceAllerton Conference
CityMonticello, Illinois

Bibliographical note

See NREL/CP-5D00-87669 for preprint

NREL Publication Number

  • NREL/CP-5D00-88523


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


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