Evaluation Methodology for Tariff Design under Escalating Penetrations of Distributed Energy Resources

Ibtihal Abdelmotteleb,Javier Reneses,Tomás Gómez

doi:10.3390/en10060778

Abstract

As the penetration of distributed energy resources (DERs) escalates in distribution networks, new network tariffs are needed to cope with this new situation. These tariffs should allocate network costs to users, promoting an efficient use of the distribution network. This paper proposes a methodology to evaluate and compare network tariff designs. Four design attributes are proposed for this aim: (i) network cost recovery; (ii) deferral of network reinforcements; (iii) efficient consumer response; (iv) recognition of side-effects on consumers. Through an analytical hierarchy process (AHP), the evaluation methodology is applied to compare traditional cost allocation methods, on the basis of 100% energy, 100% demand, and 50% energy-50% demand, with more advanced pricing methods based on distribution locational marginal prices in combination with cost-reflective network charges. Numerical results are obtained through a case study based on the IEEE 34-node test feeder with DER integration. The results illustrate the advantage of advanced pricing methods to promote an efficient integration of DER and demand price-response from consumers.

Highlights

Distribution networks are gradually suffering a transformation as the penetration level of distributed energy resources (DERs) escalates, requiring modifications in a number of related issues.One of those issues is revisiting distribution tariff designs
Each tariff design was evaluated according to the proposed methodology
The total cost of the distribution network for the considered generation along the which could be considered with potential different situations of generation along the year, which could be considered with potential different situations of maximum day is €943.66

Summary

Introduction

Distribution networks are gradually suffering a transformation as the penetration level of distributed energy resources (DERs) escalates, requiring modifications in a number of related issues. One of those issues is revisiting distribution tariff designs. The distribution network has recently been facing new concerns due to DERs integration that traditionally were not undertaken, such as bi-directional flows and increasing stranded costs. The electricity flows travelled from generation through transmission and down to distribution. With the increasing deployment of DERs, some flows are in the opposite direction, flowing up from distribution to transmission grids. DERs are serving for self-consumption, reducing the usage of the network, and increasing the stranded costs. DERs are beneficial, as they are capable of reducing costs by postponing reinforcements, reducing losses, and most of them are environmentally friendly

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Conclusion