Analysis of reflectivity &amp; predictability of electricity network tariff structures for household consumers

Nijhuis, Michiel; Gibescu, Madeleine; Cobben, Jfg Sjef

doi:10.1016/j.enpol.2017.07.049

Cited by 41 publications

(32 citation statements)

References 29 publications

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“…Note that (7) is a condition on each period k, but requires information from all periods to compute E. This leads to an ex-post definition of the tariff system because one needs to first know the behavior of customers' energy demand and injections for the entire period to then obtain prices consistent with such choices of demand and injection. Assume that E sell ik and E buy ik are known for all i ∈ I and k ∈ K. In such a case, (7) has no unique algebraic solution as one equation and two variables (π buy k , and π sell k ) exist. Additional conditions are necessary to define a unique solution to (7).…”

Section: Formulation Of the Tariff Systemmentioning

confidence: 99%

“…Assume that E sell ik and E buy ik are known for all i ∈ I and k ∈ K. In such a case, (7) has no unique algebraic solution as one equation and two variables (π buy k , and π sell k ) exist. Additional conditions are necessary to define a unique solution to (7). One additional condition can be defined to incentivize peak shaving behavior as follows:…”

Section: Formulation Of the Tariff Systemmentioning

confidence: 99%

“…The proposed formulation also ensures recovery of regulated costs, but do not guarantee profit maximization of customers; instead, the tariff system incentivizes peak shaving that leads to economic efficiency. However, the complexity of the optimization proposals is a limitation while considering the impact of customer understandability on the performance of a tariff system [5][6][7]. A more accurate (but simple) representation of welfare maximization is left for future work.…”

Section: Formulation Of the Tariff Systemmentioning

confidence: 99%

“…It concludes that it will be challenging to convince European consumers to select complex dynamic tariffs. In [7], the consequences for the cost-reflectivity, predictability, and robustness of different types of network tariffs are investigated. The study finds that predictability (how accurately a customer can estimate the total bill from the understanding of the tariff system) is the central factor for the sustainability of a tariff system, even more important than cost reflectivity.…”

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

A Simple Distribution Energy Tariff under the Penetration of DG

et al. 2020

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In a scenario where distributed generation infrastructure is increasing, the impact of that integration on electricity tariffs has captured particular attention. As the distribution sector is mainly regulated, tariff systems are defined by the authority. Then, tariffs must be simple, so the methodology, criteria, and procedures can be made public to ensure transparency and responsiveness of the customers to price signals. In the aim of simplicity, tariff systems in current practices mostly consist of volumetric charges. Hence, the reduction of the energy purchased from the distribution network jeopardizes the ability of the tariff system to ensure recovery of the total regulated costs. Although various works have captured this concern, most proposals present significant mathematical complexity, contrasting with the simplicity of current practices and limiting its regulatory applicability. This work develops a tariff system that captures the basic elements of distribution systems, trying to maintain the simplicity of current practices, ensuring recovery of the total regulated cost under the penetration of distributed generation, and incentivizing through price signals operational efficiency. A simulation will be presented to discuss numerical results.

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Section: Formulation Of the Tariff Systemmentioning

confidence: 99%

Section: Formulation Of the Tariff Systemmentioning

confidence: 99%

Section: Formulation Of the Tariff Systemmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

A Simple Distribution Energy Tariff under the Penetration of DG

et al. 2020

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“…An extensive body of research already exists examining tariff design, efficacy, equity and likelihood of consumer adoption (Nijhuis, Gibescu & Cobben 2017). Central to this work is the recognition that consumers are not homogenous and some will place a greater burden on the network than others.…”

Section: Tariff Reformmentioning

confidence: 99%

A study of residential solar power and battery energy storage adoption dynamics

Agnew¹

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As the global response to anthropogenic climate change evolves, centralised electricity supply systems have become a key focus for emission reduction efforts. While governments and industry mobilise to decarbonise the electricity sector, substantial opportunities have also begun to emerge at the residential level. Recent dramatic growth in the rate of rooftop solar photovoltaic (PV) adoption in Australia epitomises the opportunity, and the disruption, that can occur in response to falling technology costs, increasing retail electricity prices, and the emergence of more active and engaged electricity consumers.Residential battery energy storage is now on the threshold of mass-market uptake. When coupled with solar PV, battery technology could enable potentially millions of small-scale electricity endusers to participate in the market as both generators and consumers, reducing total system demand while challenging the business models of incumbent utilities. This development will not only amplify existing operational complexity in Australian electricity markets, but if the technology is poorly integrated, negatively impact the efficient provision of electricity, an essential service that underpins the structure and function of modern economies.There is a clear imperative for government and industry to proactively manage the integration of residential PV and battery energy storage to avoid adverse or unintended consequences. A number of these risks have received considerable academic and industry attention, particularly from a techno-economic viewpoint. However, there exists a substantial gap in the literature regarding research into battery adoption dynamics from a whole-of-system perspective addressing the multicausal, socially complex nature of the problem. This dissertation aims to address this gap by identifying the key dynamics that will underpin battery adoption, how they could influence battery deployment rates and how these dynamics will manifest along the broader electricity supply chain.To most effectively incorporate the substantial uncertainty and complexity associated with consumer-led electricity sector transitions in this regard, a systems thinking methodology supported by a mixed method approach to data collection has been used. To generate meaningful results at an appropriate level of granularity, the state of Queensland in Australia is used as a case study to conceptualise and model battery dynamics. Queensland has many of the preconditions necessary for rapid residential battery uptake, and with a centralised electricity sector worth more than AU$30 billion, understanding the drivers that may underpin disruption to this system is critical.ii Casual loop modelling, informed by an extensive participatory data collection exercise involving interviews with nearly 70 energy sector experts, was initially used to map the complex dynamics associated with residential battery adoption. This research found that a range of non-financial and financial reinforcing feedback loops encouraging battery ado...

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