Power-based electricity distribution tariffs providing an incentive to enhance the capacity effectiveness of electricity distribution grids
Haapaniemi, Jouni (2022-02-11)
Väitöskirja
11.02.2022
Lappeenranta-Lahti University of Technology LUT
Acta Universitatis Lappeenrantaensis
School of Energy Systems
School of Energy Systems, Sähkötekniikka
Kaikki oikeudet pidätetään.
Julkaisun pysyvä osoite on
https://urn.fi/URN:ISBN:978-952-335-786-0
https://urn.fi/URN:ISBN:978-952-335-786-0
Tiivistelmä
Energy transition is reshaping the electricity sector at a fast pace. As a consequence, electricity distribution systems are facing profound changes because also customer loads are undergoing a significant development. In particular, electrification of transportation, microgeneration, energy storage options, and smart control of loads are altering the electricity end users’ load curve. These changes will most probably increase the peak demand in distribution systems and reduce the total transferred energy.
The major changes impact the distribution system operators (DSOs) in many ways. Electricity distribution systems are dimensioned for peak demand, and thus, increments in peak loads can cause a need for reinforcing the grid capacity. Hence, there is a risk of increasing the costs of electricity distribution systems. Electricity distribution tariffs are yet typically based on the total electricity consumption of the customers, and therefore, the distribution system operator’s tariffs do not reflect the cost structure. The energyconsumption-based pricing has traditionally been dictated by limitations of the metering technology. The rollout of smart meters, however, has made it possible to develop the tariffs in a more cost-reflective way. In the development of the tariff structure, it is of high importance to understand how the tariffs will incentivize customers to adjust their load patterns and, in particular, how the tariffs will influence the incentives associated with new loads.
In this doctoral dissertation, a methodology is developed to estimate the short- and longterm effects of the tariff development on incentives for customers and the load control driven by power-based tariffs, as well as the impacts of new tariffs on the distribution grid load rates.
The results of this doctoral dissertation show that power-based tariffs provide incentives that can lead to improved capacity efficiency and a lower need for grid reinforcement investments if the customers react to the new tariff. However, there is uncertainty of how the customers will react to the price signal, and thus, whether the potential of the powerbased tariff (PBT)-based load control can be taken into account in the dimensioning of the distribution grid. On the other hand, if the customers do not react to the tariff and the risks of overloading the network increase, the costs will be gathered more cost-reflectively from the customers who have a high peak demand.
The major changes impact the distribution system operators (DSOs) in many ways. Electricity distribution systems are dimensioned for peak demand, and thus, increments in peak loads can cause a need for reinforcing the grid capacity. Hence, there is a risk of increasing the costs of electricity distribution systems. Electricity distribution tariffs are yet typically based on the total electricity consumption of the customers, and therefore, the distribution system operator’s tariffs do not reflect the cost structure. The energyconsumption-based pricing has traditionally been dictated by limitations of the metering technology. The rollout of smart meters, however, has made it possible to develop the tariffs in a more cost-reflective way. In the development of the tariff structure, it is of high importance to understand how the tariffs will incentivize customers to adjust their load patterns and, in particular, how the tariffs will influence the incentives associated with new loads.
In this doctoral dissertation, a methodology is developed to estimate the short- and longterm effects of the tariff development on incentives for customers and the load control driven by power-based tariffs, as well as the impacts of new tariffs on the distribution grid load rates.
The results of this doctoral dissertation show that power-based tariffs provide incentives that can lead to improved capacity efficiency and a lower need for grid reinforcement investments if the customers react to the new tariff. However, there is uncertainty of how the customers will react to the price signal, and thus, whether the potential of the powerbased tariff (PBT)-based load control can be taken into account in the dimensioning of the distribution grid. On the other hand, if the customers do not react to the tariff and the risks of overloading the network increase, the costs will be gathered more cost-reflectively from the customers who have a high peak demand.
Kokoelmat
- Väitöskirjat [1102]