Forward-looking dynamic network tariffs: an efficient solution for price-responsive customers

N. Morell, J.P. Chaves, T. Gómez, T. Schittekatte

En el libro Incentives and digitalization for flexibility in the green transition

Danish Utility Regulator, Copenhague, Dinamarca

Resumen:

Electricity network tariffs intend to recover network costs and adhere to economic efficiency and equity principles. Most network tariffs in real-world systems focus on cost recovery, implicitly assuming non-responsive customers. This article proposes a forward-looking dynamic network tariff that could be implemented in real-world electricity systems. First, when considering the entire network, consumers and generators must be clustered into subsystems by voltage levels, enabling the calculation of the network utilization levels; this is the so-called cascade model. After, per voltage level, the network tariff needs to be computed. The forward-looking tariff consists of a peak-coincident energy charge, which is symmetric for injections and withdrawals, a per-kWh component for energy losses, and a fixed residual network charge. This tariff design incentivizes shifting flexible loads to off-peak hours and aligns individual customer incentives with expected system benefits, reducing future network investments. In addition, the symmetric nature of the proposed tariff enables a level playing field for active customers providing flexible services. The Slovenian regulator has considered the designed tariff for future implementation. This article summarizes the findings of [1] by the same authors.

Resumen divulgativo:

Las tarifas de red eléctrica tienen como objetivo recuperar costos, incentivar la eficiencia y equidad. Este artículo propone una tarifa dinámica, que considera costes incrementales y se agrupan a los consumidores y generadores por nivel de tensión. La tarifa resulta en cargos coincidentes con los picos de utilización de la red y fomenta la respuesta de los usuarios. El regulador esloveno está considerando su implementación.

 

Palabras clave: Electricity tariffs, decarbonization, network tariffs, active customer response, distributed energy resources, long-term marginal costs, residual costs, electric vehicles

Editores: Meeus, L.; et al.,

ISBN: 978-87-975187-0-0

URL: https://forsyningstilsynet.dk/analyser-og-tal/analyser-og-markedsrapporter/forsyningstilsynets-antologi/incentives-and-digitalization-for-flexibility-in-the-green-transition

Publicado: 2024

Cita:
N. Morell, J.P. Chaves, T. Gómez, T. Schittekatte, Forward-looking dynamic network tariffs: an efficient solution for price-responsive customers, en Incentives and digitalization for flexibility in the green transition. Editores Meeus, L.; et al., . Ed. Danish Utility Regulator. Copenhague, Dinamarca, 2024.