The Impact of Network Tariffs on PV Investment Decisions by Consumers

Vespermann, Niklas; Huber, Matthías; Paulus, Simon; Metzger, Michael; Hamacher, Thomas

doi:10.1109/eem.2018.8469944

Cited by 2 publications

(2 citation statements)

References 8 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…This means that it is necessary to consider a bilevel problem. Using an equilibrium approach, [13][14][15] formulate a problem by defining the lower level as a system of optimization problems and iteratively calculating the tariffs until network costs equal the charges. The aforementioned approaches are limited to selecting the level of flat tariffs, and do not allow for consideration of different scenarios and determining off-peak periods since a loop-based model structure is employed.…”

Section: Literature Reviewmentioning

confidence: 99%

A stochastic MPEC approach for grid tariff design with demand-side flexibility

2020

View full text Add to dashboard Cite

As the end-users increasingly can provide flexibility to the power system, it is important to consider how this flexibility can be activated as a resource for the grid. Electricity network tariffs is one option that can be used to activate this flexibility. Therefore, by designing efficient grid tariffs, it might be possible to reduce the total costs in the power system by incentivizing a change in consumption patterns. This paper provides a methodology for optimal grid tariff design under decentralized decision-making and uncertainty in demand, power prices, and renewable generation. A bilevel model is formulated to adequately describe the interaction between the end-users and a distribution system operator. In addition, a centralized decision-making model is provided for benchmarking purposes. The bilevel model is reformulated as a mixed-integer linear problem solvable by branch-and-cut techniques. Results based on both deterministic and stochastic settings are presented and discussed. The findings suggest how electricity grid tariffs should be designed to provide an efficient price signal for reducing aggregate network peaks.

show abstract

Section: Literature Reviewmentioning

confidence: 99%

A stochastic MPEC approach for grid tariff design with demand-side flexibility

2020

View full text Add to dashboard Cite

show abstract

“…Many interesting observations are made regarding the adverse effects of non-cooperative behaviour. Furthermore, [6] propose a mathematical framework that considers PV investment and operational decisions under volumetric and capacity network tariff schemes in a decentralized approach benchmarked against a central planner optimization. However, in these papers, the total network costs are not dependent on decentralized decisions.…”

Section: Introductionmentioning

confidence: 99%

Interaction of DSO and local energy systems through network tariffs

Askeland

Korpås

2019

2019 16th International Conference on the European Energy Market (EEM)

View full text Add to dashboard Cite

One crucial factor that influences distributed energy resource investments and operation is the grid tariffs. If the price signal passed on to the consumer is not representative of the actual impact of the decentralized decisions on the power system, we may get inefficiencies. The main problem considered in this research is the interaction of a network operator and consumers to study how grid tariffs should be designed to facilitate favorable decentralized decisions. An equilibrium model based on tariffs is developed and benchmarked against a system optimization to study the effect of capacity-based and volumetric grid tariffs when the grid costs are a function of the decentralized decisions. The results show that both a volumetric and capacity-based tariff scheme provides a suboptimal outcome compared to the system optimal solution. Suboptimal decentralized decisions in the perspective of the overall power system is a result of the tariff schemes not being able to represent the actual network costs. Based on the findings, more innovative tariff schemes or related market mechanisms are needed to facilitate decentralized decisions that are aligned with the costs and benefits for the overall power system. Index Terms-Network tariffs, bi-level optimization, distributed energy resources, incentives.

show abstract

The Impact of Network Tariffs on PV Investment Decisions by Consumers

Cited by 2 publications

References 8 publications

A stochastic MPEC approach for grid tariff design with demand-side flexibility

A stochastic MPEC approach for grid tariff design with demand-side flexibility

Interaction of DSO and local energy systems through network tariffs

Contact Info

Product

Resources

About