Squaring the sunny circle? On balancing distributive justice of power grid costs and incentives for solar prosumers

Kubli, Merla

doi:10.1016/j.enpol.2017.11.054

Cited by 51 publications

(27 citation statements)

References 36 publications

(23 reference statements)

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“…The increasing usage of the grid, proportional to the maximum power exchanged with the grid, is hence one of the barriers to a high penetration of residential PV. Additionally, since the current business model of PV owners is to reduce their electricity bill thanks to self-consumption (Kubli 2018), social equity issues arise. Indeed the current tariff structures do not allow the network operator to recover grid costs from PV owners.…”

Section: Introductionmentioning

confidence: 99%

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

et al. 2019

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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.

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Section: Introductionmentioning

confidence: 99%

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

et al. 2019

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“…Another strand of literature is concerned with the distributive implications of distribution grid charging schemes. Kubli (2018) assesses the costs induced by further diffusion of prosumage in Switzerland, and analyze how different con-7 sumer groups are affected by the recovery of these costs. Similarly, Jargstorf et al (2015) examines the effectiveness of tariffs to internalize grid costs for prosumage.…”

Section: Policy Design For Distribution Gridsmentioning

confidence: 99%

“…We establish a link between bottom-up assessments, which focus on the individual installation level (see, e.g., López Prol and Steininger, 2017, Solano et al, 2018, and system-level analyses, which do not include any representation of the prosumage (Hinz et al, 2018) or the transmission grid level (Kubli, 2018).…”

Section: Introductionmentioning

confidence: 99%

Modeling coordination between renewables and grid: Policies to mitigate distribution grid constraints using residential PV-battery systems

2019

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Distributed photo-voltaic (PV) generation is one of the pillars of energy transitions around the world, but its deployment in the distribution grid requires costly reinforcements and expansions. Prosumage -consisting of a household-level PV unit coupled with a battery storage system -has been proposed as an effective means to facilitate the integration of renewable energy sources and reduce distribution grid stress. However, tapping its full potential requires regulatory interventions; otherwise, system costs could rise despite increasing flexibility. We analyze the effectiveness of different policy schemes to mitigate the need for distribution capacity expansion by incentivizing beneficial storage operation. Our novel top-down modeling approach allows analyzing effects on market prices, storage dispatch, induced distribution grid requirements, system costs, and distributional implications. Numerical results for German power system data indicate that required distribution grid requirements can be reduced through simple feed-in policies. A uniform limit on maximum grid feed-in can leave distribution system operators better off, even if they fully compensate prosumage households for foregone revenue. Policies imposing more differentiated limits at the regional level result in only marginal efficiency improvements. Complete self-sufficiency (autarky) is socially undesirable, as it confines important balancing potential and can increase system costs despite adding storage.

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“…Another strand of literature is concerned with the distributive implications of distribution grid charging schemes. Kubli (2018) They check for distributive justice between different regions and assess the implications of charging generators as opposed to charging consumers. While these studies focus on radical changes of the regulatory design for distribution grid, we suggest incremental policy changes that do not deviate from the shallow grid charge scheme.…”

Section: Policy Design For Distribution Gridsmentioning

confidence: 99%

Modeling Coordination Between Renewables and Grid: Policies to Mitigate Distribution Grid Constraints Using Residential PV-Battery Systems

2018

View full text Add to dashboard Cite

Distributed photo-voltaic (PV) generation is one of the pillars of energy transitions around the world, but its deployment in the distribution grid requires costly reinforcements and expansions. Prosumage-consisting of a household-level PV unit coupled with a battery storage system-has been proposed as an effective means to facilitate the integration of renewable energy sources and reduce distribution grid stress. However, tapping its full potential requires regulatory interventions; otherwise, system costs could rise despite increasing flexibility. We analyze the effectiveness of different policy schemes to mitigate the need for distribution capacity expansion by incentivizing beneficial storage operation. Our novel top-down modeling approach allows analyzing effects on market prices, storage dispatch, induced distribution grid requirements, system costs, and distributional implications. Numerical results for German power system data indicate that required distribution grid requirements can be reduced through simple feed-in policies. A uniform limit on maximum grid feed-in can leave distribution system operators better off, even if they fully compensate prosumage households for foregone revenue. Policies imposing more differentiated limits at the regional level result in only marginal efficiency improvements. Complete self-sufficiency (autarky) is socially undesirable, as it confines important balancing potential and can increase system costs despite adding storage.

show abstract

Squaring the sunny circle? On balancing distributive justice of power grid costs and incentives for solar prosumers

Cited by 51 publications

References 36 publications

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

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

Modeling coordination between renewables and grid: Policies to mitigate distribution grid constraints using residential PV-battery systems

Modeling Coordination Between Renewables and Grid: Policies to Mitigate Distribution Grid Constraints Using Residential PV-Battery Systems

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