Impact of advanced electricity tariff structures on the optimal design, operation and profitability of a grid-connected PV system with energy storage

Abstract

The increasing penetration of residential photovoltaics (PV) comes with numerous challenges for distribution system operators. Technical difficulties arise when an excess of PV energy is injected into the grid, causing voltage rise or overloading of the lines. Economic challenges appear because PV owners and consumers are not participating equally in the grid costs. Indeed, PV owners benefit by self-consuming their PV production and by gaining additional revenues when they sell their PV surplus to the grid. Hence, they lower their grid costs. In this paper, we propose a mixed-integer-linear programming approach to solve the design and operation of a PV and battery system efficiently. We use this tool to benchmark five different tariff scenarios, which include real-time pricing, a capacity-based tariff, and a block rate tariff, and evaluate their effect on the design and operation of the system. Carefully tailored metrics show the impact of these tariff structures on the trade-off between the economic viability of privately owned energy systems and their grid usage intensity. Considering both aspects, we show that a block rate tariff is the most promising approach and that capacity-based tariffs rely on PV curtailment alone to curtail the generation peaks.

AggFT: Low-Cost Fault-Tolerant Smart Meter Aggregation with Proven Termination and Privacy

“…In case − → S is pseudorandomly generated, A may have some advantage (λ) to win the unlinkability game. However, (λ) tightly relates to the distinguishability of the PRG from truly random number generators in (2). With R and P R standing for Random and Pseudo-Random, respectively, this relation is shown in (5).…”

“…If the PRG is cryptographically secure, comparing ( 5) with (2) shows that the advantage in winning the unlinkability game (λ) must be negligible.…”

Multi-Criteria Storage Selection Model for Grid-Connected Photovoltaics Systems

“…The GCPV system consists of the photovoltaics (PV) modules, connection with a utility grid, and consumer loads. The PV modules generate the highly fluctuating output that is not suitable for consumer usage and the grid export [15]. To overcome this challenge, the electricity is sold to the utility grid during the peak PV generation times and it is purchased from the utility grid during the off-peak times.…”

“…To overcome this challenge, the electricity is sold to the utility grid during the peak PV generation times and it is purchased from the utility grid during the off-peak times. However, the grid may be unable to provide the required electricity at off-peak times or the higher feed-in of PV into the utility grid may cause the grid overloading [15]. In such situations, a proper storage system provides the many benefits such as PV variability management [16], stabilization of the power system [17], storage of excessive electricity [18], additional inventory for the times of electricity shortage at the utility grid [19], reduction of electricity procurement from the utility grid [20], load management flexibility, and solutions to the power quality issues [21].…”

Mitigating the impact of distributed PV in a low-voltage grid using electricity tariffs

“…In this work, we investigate the effect of five different tariff scenarios, described in Table I, on network operation when optimizing both the design and operation of all buildings connected to that network, using a methodology developed in [10]. The scenarios consider pure volumetric electricity tariffs, a mix of volumetric and capacity-based tariffs, or a block rate tariff.…”