A Digital Twin-Based Method for Evaluating Local Collective Tariffs in Distribution-Level Energy Systems
Authors: Kristoffer Christensen, Bo Nørregaard Jørgensen, Zheng Grace Ma
Organizations: SDU Center for Energy Informatics, Maersk Mc-Kinney Moeller Institute, The Faculty of Engineering, University of Southern Denmark, Odense, Denmark
Abstract
This work addresses the need for engineering-grounded evaluation of implement-ed tariff mechanisms in distribution-level energy systems. A digital twin-based method is proposed for assessing local collective tariffs under realistic behavioral and infrastructural conditions. The approach integrates agent-based modeling of household consumption and generation, virtual aggregation through a shared metering abstraction, and explicit representation of tariff logic within a unified simulation environment. The method is demonstrated through its application to the Danish Local Collective Tariff across representative residential energy community configurations, including scenarios with photovoltaic generation, battery storage, and electric vehicle charging. Results indicate that aggregation of heterogeneous demand profiles reduces peak coincidence and enables more efficient allocation of tariff components, leading to measurable cost reductions at the community level. At the same time, the outcomes reveal sensitivity to the temporal alignment of consumption and generation, influencing the degree of cost neutrality across participants. The findings illustrate how digital twin-based evaluation can support systematic assessment of tariff mechanisms by capturing the interaction between infrastructure, user behavior, and regulatory design. The proposed approach provides a basis for analyzing and comparing tariff structures in distribution-level energy systems beyond the specific case considered.
Distribution networks with high penetration of Distributed Energy Resources (DERs) increasingly rely on communication networks to coordinate grid-interactive control. While many distributed control schemes have been proposed, they are often evaluated under idealized communication assumptions, making it difficult to assess their performance under realistic network conditions. This work presents an implementation-driven evaluation of a representative virtual power plant (VPP) dispatch algorithm using a co-simulation framework that couples a linearized distribution-system model with packet-level downlink emulation in ns-3. The study considers a modified IEEE~37-node feeder with high photovoltaic penetration and a primal--dual VPP dispatch that simultaneously targets feeder-head active power tracking and voltage regulation. Communication effects are introduced only on the downlink path carrying dual-variable updates, where per-DER packet delays and a hold-last-value strategy are modeled. Results show that, under ideal communication, the dispatch achieves close tracking of the feeder-head power reference while maintaining voltages within the prescribed limits at selected buses. When realistic downlink delay is introduced, the same controller exhibits large oscillations in feeder-head power and more frequent voltage limit violations. These findings highlight that distributed DER control performance can be strongly influenced by communication behavior and motivate evaluation frameworks that explicitly incorporate network dynamics into the assessment of grid-interactive control schemes.
This paper compares rule-based and learning-based pricing mechanisms for peer-to-peer (P2P) electricity trading in residential photovoltaic communities. The rule-based benchmarks comprise bill-sharing as an ex post allocation mechanism, the mid-market rate, and supply-demand-ratio pricing. The reinforcement-learning (RL) formulation is implemented through a Deep Q-Network and evaluated under multiplier-based and learnable SDR-shaped pricing, with a fixed-parameter SDR variant as a non-learning control. Performance is assessed through community savings together with complementary financial and operational indicators. In the base PV-only configuration, the rule-based benchmarks outperform the best RL policy. With battery energy storage, evaluated for the RL policies only, community savings under the best RL policy increase from EUR 734.23 to EUR 978.52. Across the learning-based modes and in both configurations, SDR-shaped pricing outperforms the multiplier-based parameterization considered. The results indicate that rule-based pricing remains highly competitive wherever the two families are compared directly, and that storage substantially improves the learning-based outcomes under this accounting, while the distribution of benefits remains heterogeneous across households.
Real-time supervisory control of thermal energy distribution systems requires digital twins that are accurate, interpretable, and uncertainty-aware, yet remain data and computationally efficient. High-fidelity simulations alone are costly, while purely data-driven surrogates often lack robustness. To address these challenges, this work proposes an active learning (AL) framework that couples system-level Modelica simulations with four simpler physics-informed and data-driven surrogate modeling approaches: deterministic Sparse Identification of Nonlinear Dynamics with Control (SINDyC), its probabilistic multivariate-Gaussian extension (MvG-SINDyC), feedforward neural network (FNN), and gated recurrent unit (GRU) network. Tailored to each surrogate, model-specific AL query strategies are employed, including Mahalanobis-distance sampling in coefficient space for MvG-SINDyC and error-based sampling in prediction space for SINDyC, FNN, and GRU, allowing the learning process to prioritize dynamically informative trajectories. The proposed approach is demonstrated on the glycol heat exchanger (GHX) subsystem of the Thermal Energy Distribution System (TEDS) at Idaho National Laboratory. Across key GHX outputs--the bypass mass flow rate m˙GHX and heat transfer rate QGHX-the AL framework achieves comparable predictive accuracy using as few as one-fifth of the simulation trajectories required by random sampling. Among the evaluated surrogates, the GRU achieves the highest predictive fidelity, while SINDyC remains the most computationally efficient and interpretable. The probabilistic MvG-SINDyC surrogate further enables uncertainty quantification and exhibits the largest computational gains under AL.