Technical, Economic, Social and Regulatory Feasibility Evaluation of Dynamic Distribution Tariff Designs

Kristoffer Christensen*, Zheng Ma, Bo Nørregaard Jørgensen

*Corresponding author for this work

Research output: Contribution to journalJournal articleResearchpeer-review

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Abstract

The increasing number of distributed energy resources in the distribution grids creates the risk of grid congestion and the high cost of grid expansion. The implementation of the dynamic distribution grid tariffs can potentially avoid grid congestion. Meanwhile, the design and implementation of any distribution tariff need to consider and match the regional/national requirements. However, there is no sufficient evaluation method available to review and evaluate the feasibility of the dynamic distribution tariffs. Therefore, this paper introduces a feasibility evaluation method with four dimensions of technical, economic, social, and regulatory to review dynamic distribution tariffs. The literature on dynamic distribution tariffs is collected, and 29 dynamic distribution tariffs are selected and further categorized into five attributes of rationale, cost drivers, dynamics, events, and active demand. The evaluation results show that the time-of-use tariff is the most feasible dynamic distribution tariff, and the review of a proposed future distribution tariff model in Denmark verifies the evaluation method and results. The developed feasibility evaluation method for dynamic distribution tariffs can ensure the design and implementation of a dynamic distribution tariff to be feasible and applicable in a region.
Original languageEnglish
Article number2860
JournalEnergies
Volume14
Issue number10
Number of pages24
ISSN1996-1073
DOIs
Publication statusPublished - 15. May 2021

Keywords

  • Dynamic distribution tariff
  • Feasibility evaluation
  • Participation cost
  • Regulatory readiness
  • Scoping review
  • Technology readiness
  • User convenience level

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