Evaluation methodology for tariff design under escalating penetrations of distributed energy resources

Evaluation methodology for tariff design under escalating penetrations of distributed energy resources

Abdelmotteleb, I.I.A. (TU Delft Energie and Industrie; Institute for Research in Technology (IIT); Comillas Pontifical University)
Gómez, Tomás (Comillas Pontifical University)
Reneses, Javier (Comillas Pontifical University)

2017

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.

Analytical hierarchy process
Distributed energy resources
Distribution locational marginal prices
Distribution network tariff
Peak-coincidence network charges

http://resolver.tudelft.nl/uuid:ae28c34f-4226-48ad-b247-69f8278f43e2

https://doi.org/10.3390/en10060778

1996-1073

Energies, 10 (6), 1-16

Institutional Repository

journal article

© 2017 I.I.A. Abdelmotteleb, Tomás Gómez, Javier Reneses