Dynamic network tariffs: Current practices, key issues and challenges

Abstract

With the ever‐growing demand for electricity, fast development of intermittent renewable energy generation (IREG), and evolving electricity pricing mechanisms, different network tariff schemes are implemented in various countries to address emerging challenges in power system planning and operation as well as electricity market evolution. Given this background, a survey of current practices on dynamic network tariffs in some representative countries is first presented. Subsequently, key issues of dynamic network tariffs including prerequisite, implementation and effects are described. Finally, from the perspective of electricity consumers, distribution system operators (DSOs) and regulatory authorities, the challenges associated with the implementation of dynamic network tariffs are discussed.

Optimizing the Over and Underutilization of Network Resources During Peak and Off-Peak Hours

“…Moreover, the variability of peak hours across different regions presents a significant hurdle in implementing a universally applicable congestion management strategy [41]. Each geographical area may experience peak internet usage at different times, making it challenging to devise a one-sizefits-all solution that effectively addresses congestion patterns across diverse locales.…”