Design and Impact of Grid Tariffs

We propose a novel grid tariff design proportional to grid load and analyze its performance in comparison to other grid tariff designs with regards to (i) effectiveness, (ii) efficiency, (iii) profitability of technologies and (iv) equity. In the case of a large share of automated loads, time-of-use...

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Main Authors: Christian Winzer, Patrick Hensler-Ludwig
Format: Article
Language:English
Published: MDPI AG 2024-03-01
Series:Energies
Subjects:
Online Access:https://www.mdpi.com/1996-1073/17/6/1364
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author Christian Winzer
Patrick Hensler-Ludwig
author_facet Christian Winzer
Patrick Hensler-Ludwig
author_sort Christian Winzer
collection DOAJ
description We propose a novel grid tariff design proportional to grid load and analyze its performance in comparison to other grid tariff designs with regards to (i) effectiveness, (ii) efficiency, (iii) profitability of technologies and (iv) equity. In the case of a large share of automated loads, time-of-use tariffs and critical peak prices create problematic new rebound peaks. Direct load control and capacity prices can reduce grid load without rebound peaks but are less effective at reducing both grid and energy costs. The novel tariff design proportional to the grid load can reduce both grid and energy costs but needs to be designed appropriately to avoid rebound peaks. Tariff impacts on the profitability of different technologies are more pronounced than equity impacts because households from all income brackets may be equipped with PV and flexible technologies.
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spelling doaj.art-a94069330c60492ca13c40802d74e4942024-03-27T13:35:33ZengMDPI AGEnergies1996-10732024-03-01176136410.3390/en17061364Design and Impact of Grid TariffsChristian Winzer0Patrick Hensler-Ludwig1ZHAW School of Management and Law, Center for Energy and Environment, 8400 Winterthur, SwitzerlandZHAW School of Management and Law, Center for Energy and Environment, 8400 Winterthur, SwitzerlandWe propose a novel grid tariff design proportional to grid load and analyze its performance in comparison to other grid tariff designs with regards to (i) effectiveness, (ii) efficiency, (iii) profitability of technologies and (iv) equity. In the case of a large share of automated loads, time-of-use tariffs and critical peak prices create problematic new rebound peaks. Direct load control and capacity prices can reduce grid load without rebound peaks but are less effective at reducing both grid and energy costs. The novel tariff design proportional to the grid load can reduce both grid and energy costs but needs to be designed appropriately to avoid rebound peaks. Tariff impacts on the profitability of different technologies are more pronounced than equity impacts because households from all income brackets may be equipped with PV and flexible technologies.https://www.mdpi.com/1996-1073/17/6/1364grid tariffdemand responseautomatic load-control
spellingShingle Christian Winzer
Patrick Hensler-Ludwig
Design and Impact of Grid Tariffs
Energies
grid tariff
demand response
automatic load-control
title Design and Impact of Grid Tariffs
title_full Design and Impact of Grid Tariffs
title_fullStr Design and Impact of Grid Tariffs
title_full_unstemmed Design and Impact of Grid Tariffs
title_short Design and Impact of Grid Tariffs
title_sort design and impact of grid tariffs
topic grid tariff
demand response
automatic load-control
url https://www.mdpi.com/1996-1073/17/6/1364
work_keys_str_mv AT christianwinzer designandimpactofgridtariffs
AT patrickhenslerludwig designandimpactofgridtariffs