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Strategic decision making of distribution network operators and investors in residential photovoltaic battery storage systems

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  • von Appen, J.
  • Braun, M.

Abstract

As the adoption of combined photovoltaic (PV) systems and battery storage systems (BSSs) for residential buildings increases, challenges for distribution network operators (DNOs) arise. Part of the attractiveness of investing in such systems stems from avoiding paying grid charges (GCs). Yet, the systems rely on the grid for PV feed-in and possibly contribute to PV grid integration challenges. Here, a bilevel optimization approach is developed to evaluate interdependencies between the DNO’s decision of raising GCs and the reaction of PV BSS investors. The model allows DNOs to trade-off the effectiveness of different measures to foster PV grid integration and the danger of starting a self-reinforcing process, potentially leading to grid defection. Included are two case studies that show that the new equilibrium between DNO and PV BSSs comes at a price of raised GCs and larger PV system sizes. Yet, in either case study, grid defection is not a realistic scenario as the marginal value of additional self-supply decreases with higher GCs. Compared to PV curtailment by the DNO, or grid reinforcements, fixed feed-in limits and power-based GCs reduce oversizing of PV BSSs and provide an operational incentive for peak-oriented BSS operation.

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  • von Appen, J. & Braun, M., 2018. "Strategic decision making of distribution network operators and investors in residential photovoltaic battery storage systems," Applied Energy, Elsevier, vol. 230(C), pages 540-550.
    • Handle: RePEc:eee:appene:v:230:y:2018:i:c:p:540-550
    DOI: 10.1016/j.apenergy.2018.08.043
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    6. Hoarau, Quentin & Perez, Yannick, 2019. "Network tariff design with prosumers and electromobility: Who wins, who loses?," Energy Economics, Elsevier, vol. 83(C), pages 26-39.
    7. Longxi Li, 2020. "Optimal Coordination Strategies for Load Service Entity and Community Energy Systems Based on Centralized and Decentralized Approaches," Energies, MDPI, vol. 13(12), pages 1-22, June.
    8. Hayibo, Koami Soulemane & Pearce, Joshua M., 2021. "A review of the value of solar methodology with a case study of the U.S. VOS," Renewable and Sustainable Energy Reviews, Elsevier, vol. 137(C).
    9. Hosseinnia, Hamed & Modarresi, Javad & Nazarpour, Daryoush, 2020. "Optimal eco-emission scheduling of distribution network operator and distributed generator owner under employing demand response program," Energy, Elsevier, vol. 191(C).
    10. Gorman, Will & Jarvis, Stephen & Callaway, Duncan, 2020. "Should I Stay Or Should I Go? The importance of electricity rate design for household defection from the power grid," Applied Energy, Elsevier, vol. 262(C).
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    12. Daniel Then & Patrick Hein & Tanja M. Kneiske & Martin Braun, 2020. "Analysis of Dependencies between Gas and Electricity Distribution Grid Planning and Building Energy Retrofit Decisions," Sustainability, MDPI, vol. 12(13), pages 1-42, July.
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