1991. The benefit of time-of-use network charges in distribution grids for prosumers and network operators – A model-based evaluation of Germany’s new regulation.
Invited abstract in session TA-44: Modelling coordination challenges in the energy transition, stream Energy Economics & Management.
Tuesday, 8:30-10:00Room: Newlyn 1.01
Authors (first author is the speaker)
| 1. | Hendrik Kramer
|
| Chair for Management Science and Energy Economics, Universität Duisburg Essen |
Abstract
Demand flexibility is seen as necessity to achieve decarbonization in energy systems. Dynamic tariffs can align power supply and residential demand in the energy system. Such tariffs have already been researched and are implemented. Yet, varying network charges in distribution grids are less common. Accounting for local information, tailored network charges can better mitigate congestion in distribution networks and may defer reinforcement investments. In Germany, residential prosumers can choose a time-of-use network charge scheme set by the network operator. The new regulation is especially foreseen as incentive for flexible devices e.g., heat pumps, photovoltaic buffer storage, etc. This research first compares the temporal and monetary attributes of the time-of-use network charges of various network operators. Then, this work assesses the benefits for end consumers under different tariff and network charge schemes. An optimization model, focusing on flexible residential demand is developed and applied. Also, differences in foresight horizons are implemented and discussed. Preliminary results indicate that a three-segment quarterly time-of-use network charge scheme per distribution network operator is promising to shift demand peaks in distribution grids. This configuration partially counteracts the efficient allocation based on wholesale market price signals.
Keywords
- Energy Policy and Planning
- OR in Energy
- Economic Modeling
Status: accepted
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