IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v126y2019icp12-21.html
   My bibliography  Save this article

Electricity grid tariffs as a tool for flexible energy systems: A Danish case study

Author

Listed:
  • Bergaentzlé, Claire
  • Jensen, Ida Græsted
  • Skytte, Klaus
  • Olsen, Ole Jess

Abstract

Electricity grid tariffs are a lever for reinforcing the coupling of district heating systems to the electricity system and for activating flexibility from power-to-heat (P2H) technologies and storage capacities. This study assesses three tariffs that permit a flexible use of electric boilers in a representative district heating system in Denmark. A mixed integer programming model is developed to evaluate the impact of each tariff on district heating flexibility quantitatively. The tariffs are then discussed in the light of the regulatory requirements that network tariffs must comply with.

Suggested Citation

  • Bergaentzlé, Claire & Jensen, Ida Græsted & Skytte, Klaus & Olsen, Ole Jess, 2019. "Electricity grid tariffs as a tool for flexible energy systems: A Danish case study," Energy Policy, Elsevier, vol. 126(C), pages 12-21.
  • Handle: RePEc:eee:enepol:v:126:y:2019:i:c:p:12-21
    DOI: 10.1016/j.enpol.2018.11.021
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421518307444
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.enpol.2018.11.021?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Kirkerud, Jon Gustav & Bolkesjø, Torjus Folsland & Trømborg, Erik, 2017. "Power-to-heat as a flexibility measure for integration of renewable energy," Energy, Elsevier, vol. 128(C), pages 776-784.
    2. Jean-Jacques Laffont & Jean Tirole, 1993. "A Theory of Incentives in Procurement and Regulation," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262121743, April.
    3. Comnes, G. Alan & Stoft, Steve & Greene, Nathanael & Hill, Larry, 1996. "Six useful observations for designers of PBR plans," The Electricity Journal, Elsevier, vol. 9(3), pages 16-23, April.
    4. Robert H. Patrick & Frank A. Wolak, 2001. "Estimating the Customer-Level Demand for Electricity Under Real-Time Market Prices," NBER Working Papers 8213, National Bureau of Economic Research, Inc.
    5. Lee, Charles M.C. & Sun, Stephen Teng & Wang, Rongfei & Zhang, Ran, 2019. "Technological links and predictable returns," Journal of Financial Economics, Elsevier, vol. 132(3), pages 76-96.
    6. Olmos, Luis & Pérez-Arriaga, Ignacio J., 2009. "A comprehensive approach for computation and implementation of efficient electricity transmission network charges," Energy Policy, Elsevier, vol. 37(12), pages 5285-5295, December.
    7. Wong Ai Yieng & Khadijah Binti Daud, 2017. "Technology Leadership in Malaysia's High Performance School," Journal of Education and e-Learning Research, Asian Online Journal Publishing Group, vol. 4(1), pages 8-14.
    8. Dupont, B. & De Jonghe, C. & Olmos, L. & Belmans, R., 2014. "Demand response with locational dynamic pricing to support the integration of renewables," Energy Policy, Elsevier, vol. 67(C), pages 344-354.
    9. Sandberg, Eli & Sneum, Daniel Møller & Trømborg, Erik, 2018. "Framework conditions for Nordic district heating - Similarities and differences, and why Norway sticks out," Energy, Elsevier, vol. 149(C), pages 105-119.
    10. Lund, Henrik & Kempton, Willett, 2008. "Integration of renewable energy into the transport and electricity sectors through V2G," Energy Policy, Elsevier, vol. 36(9), pages 3578-3587, September.
    11. Lesh, Pamela G., 2009. "Rate Impacts and Key Design Elements of Gas and Electric Utility Decoupling: A Comprehensive Review," The Electricity Journal, Elsevier, vol. 22(8), pages 65-71, October.
    12. Møller Sneum, Daniel & Sandberg, Eli & Koduvere, Hardi & Olsen, Ole Jess & Blumberga, Dagnija, 2018. "Policy incentives for flexible district heating in the Baltic countries," Utilities Policy, Elsevier, vol. 51(C), pages 61-72.
    13. Faerber, Laura Antonia & Balta-Ozkan, Nazmiye & Connor, Peter M., 2018. "Innovative network pricing to support the transition to a smart grid in a low-carbon economy," Energy Policy, Elsevier, vol. 116(C), pages 210-219.
    14. Center for Study of Science, Technology and Policy CSTEP, 2017. "Technology Options for the Sanitation Value Chain," Working Papers id:11936, eSocialSciences.
    15. R. Varaldo, 2017. "Technology Transfer at a Turning Point," Rivista economica del Mezzogiorno, Società editrice il Mulino, issue 3, pages 769-780.
    16. Lund, Peter D. & Lindgren, Juuso & Mikkola, Jani & Salpakari, Jyri, 2015. "Review of energy system flexibility measures to enable high levels of variable renewable electricity," Renewable and Sustainable Energy Reviews, Elsevier, vol. 45(C), pages 785-807.
    17. Higgins, Andrew & Grozev, George & Ren, Zhengen & Garner, Stephen & Walden, Glenn & Taylor, Michelle, 2014. "Modelling future uptake of distributed energy resources under alternative tariff structures," Energy, Elsevier, vol. 74(C), pages 455-463.
    18. Nijhuis, M. & Gibescu, M. & Cobben, J.F.G., 2017. "Analysis of reflectivity & predictability of electricity network tariff structures for household consumers," Energy Policy, Elsevier, vol. 109(C), pages 631-641.
    19. Kirkerud, Jon Gustav & Trømborg, Erik & Bolkesjø, Torjus Folsland, 2016. "Impacts of electricity grid tariffs on flexible use of electricity to heat generation," Energy, Elsevier, vol. 115(P3), pages 1679-1687.
    20. Passey, Robert & Haghdadi, Navid & Bruce, Anna & MacGill, Iain, 2017. "Designing more cost reflective electricity network tariffs with demand charges," Energy Policy, Elsevier, vol. 109(C), pages 642-649.
    21. Schittekatte, Tim & Momber, Ilan & Meeus, Leonardo, 2018. "Future-proof tariff design: Recovering sunk grid costs in a world where consumers are pushing back," Energy Economics, Elsevier, vol. 70(C), pages 484-498.
    22. Schreiber, Michael & Wainstein, Martin E. & Hochloff, Patrick & Dargaville, Roger, 2015. "Flexible electricity tariffs: Power and energy price signals designed for a smarter grid," Energy, Elsevier, vol. 93(P2), pages 2568-2581.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nicolás Morell Dameto & José Pablo Chaves-Ávila & Tomás Gómez San Román, 2020. "Revisiting Electricity Network Tariffs in a Context of Decarbonization, Digitalization, and Decentralization," Energies, MDPI, vol. 13(12), pages 1-21, June.
    2. Sanghyun Sung & Wooyong Jung, 2019. "Economic Competitiveness Evaluation of the Energy Sources: Comparison between a Financial Model and Levelized Cost of Electricity Analysis," Energies, MDPI, vol. 12(21), pages 1-21, October.
    3. Askeland, Magnus & Backe, Stian & Bjarghov, Sigurd & Korpås, Magnus, 2021. "Helping end-users help each other: Coordinating development and operation of distributed resources through local power markets and grid tariffs," Energy Economics, Elsevier, vol. 94(C).
    4. Štefan Bojnec & Alan Križaj, 2021. "Electricity Markets during the Liberalization: The Case of a European Union Country," Energies, MDPI, vol. 14(14), pages 1-21, July.
    5. Andruszkiewicz, Jerzy & Lorenc, Józef & Weychan, Agnieszka, 2020. "Seasonal variability of price elasticity of demand of households using zonal tariffs and its impact on hourly load of the power system," Energy, Elsevier, vol. 196(C).
    6. Hanny, Lisa & Wagner, Jonathan & Buhl, Hans Ulrich & Heffron, Raphael & Körner, Marc-Fabian & Schöpf, Michael & Weibelzahl, Martin, 2022. "On the progress in flexibility and grid charges in light of the energy transition: The case of Germany," Energy Policy, Elsevier, vol. 165(C).
    7. Karim L. Anaya & Michael G. Pollitt, 2021. "The Role of Regulators in Promoting the Procurement of Flexibility Services within the Electricity Distribution System: A Survey of Seven Leading Countries," Energies, MDPI, vol. 14(14), pages 1-25, July.
    8. Aikaterini Forouli & Emmanouil A. Bakirtzis & Georgios Papazoglou & Konstantinos Oureilidis & Vasileios Gkountis & Luisa Candido & Eloi Delgado Ferrer & Pandelis Biskas, 2021. "Assessment of Demand Side Flexibility in European Electricity Markets: A Country Level Review," Energies, MDPI, vol. 14(8), pages 1-23, April.
    9. Mišík, Matúš, 2022. "The EU needs to improve its external energy security," Energy Policy, Elsevier, vol. 165(C).
    10. Spiller, Elisheba & Esparza, Ricardo & Mohlin, Kristina & Tapia-Ahumada, Karen & Ünel, Burçin, 2023. "The role of electricity tariff design in distributed energy resource deployment," Energy Economics, Elsevier, vol. 120(C).
    11. Stawska, Anna & Romero, Natalia & de Weerdt, Mathijs & Verzijlbergh, Remco, 2021. "Demand response: For congestion management or for grid balancing?," Energy Policy, Elsevier, vol. 148(PA).
    12. Golmohamadi, Hessam & Larsen, Kim Guldstrand & Jensen, Peter Gjøl & Hasrat, Imran Riaz, 2022. "Integration of flexibility potentials of district heating systems into electricity markets: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 159(C).
    13. Jerzy Andruszkiewicz & Józef Lorenc & Agnieszka Weychan, 2021. "Price-Based Demand Side Response Programs and Their Effectiveness on the Example of TOU Electricity Tariff for Residential Consumers," Energies, MDPI, vol. 14(2), pages 1-21, January.
    14. Peter D. Lund & Klaus Skytte & Simon Bolwig & Torjus Folsland Bolkesjö & Claire Bergaentzlé & Philipp Andreas Gunkel & Jon Gustav Kirkerud & Antje Klitkou & Hardi Koduvere & Armands Gravelsins & Dagni, 2019. "Pathway Analysis of a Zero-Emission Transition in the Nordic-Baltic Region," Energies, MDPI, vol. 12(17), pages 1-20, August.
    15. Manuel de Villena, Miguel & Jacqmin, Julien & Fonteneau, Raphael & Gautier, Axel & Ernst, Damien, 2021. "Network tariffs and the integration of prosumers: The case of Wallonia," Energy Policy, Elsevier, vol. 150(C).
    16. Jerez Monsalves, Juan & Bergaentzlé, Claire & Keles, Dogan, 2023. "Impacts of flexible-cooling and waste-heat recovery from data centres on energy systems: A Danish case study," Energy, Elsevier, vol. 281(C).
    17. Gunkel, Philipp Andreas & Bergaentzlé, Claire-Marie & Keles, Dogan & Scheller, Fabian & Jacobsen, Henrik Klinge, 2023. "Grid tariff designs to address electrification and their allocative impacts," Utilities Policy, Elsevier, vol. 85(C).
    18. Rahman, Arief & Richards, Russell & Dargusch, Paul & Wadley, David, 2023. "Pathways to reduce Indonesia’s dependence on oil and achieve longer-term decarbonization," Renewable Energy, Elsevier, vol. 202(C), pages 1305-1323.
    19. Tara S. Amirkhizi & Ida G. Jensen, 2020. "Cost comparison and optimization of gas electric hybrid heat pumps," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 9(3), May.
    20. Hannah Mareike Marczinkowski & Luísa Barros, 2020. "Technical Approaches and Institutional Alignment to 100% Renewable Energy System Transition of Madeira Island—Electrification, Smart Energy and the Required Flexible Market Conditions," Energies, MDPI, vol. 13(17), pages 1-22, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sandberg, Eli & Kirkerud, Jon Gustav & Trømborg, Erik & Bolkesjø, Torjus Folsland, 2019. "Energy system impacts of grid tariff structures for flexible power-to-district heat," Energy, Elsevier, vol. 168(C), pages 772-781.
    2. Morell-Dameto, Nicolás & Chaves-Ávila, José Pablo & Gómez San Román, Tomás & Schittekatte, Tim, 2023. "Forward-looking dynamic network charges for real-world electricity systems: A Slovenian case study," Energy Economics, Elsevier, vol. 125(C).
    3. Møller Sneum, Daniel, 2021. "Barriers to flexibility in the district energy-electricity system interface – A taxonomy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 145(C).
    4. Sneum, Daniel Møller & González, Mario Garzón & Gea-Bermúdez, Juan, 2021. "Increased heat-electricity sector coupling by constraining biomass use?," Energy, Elsevier, vol. 222(C).
    5. Florencia Verónica Pedroni & Gabriela Pesce & Anahí Briozzo, 2022. "Inclusión financiera, medios de pago electrónicos y evasión tributaria: análisis económico y aplicación en Argentina," Apuntes del Cenes, Universidad Pedagógica y Tecnológica de Colombia, vol. 41(73), pages 171-202, February.
    6. Bovera, Filippo & Delfanti, Maurizio & Fumagalli, Elena & Lo Schiavo, Luca & Vailati, Riccardo, 2021. "Regulating electricity distribution networks under technological and demand uncertainty," Energy Policy, Elsevier, vol. 149(C).
    7. Peter D. Lund & Klaus Skytte & Simon Bolwig & Torjus Folsland Bolkesjö & Claire Bergaentzlé & Philipp Andreas Gunkel & Jon Gustav Kirkerud & Antje Klitkou & Hardi Koduvere & Armands Gravelsins & Dagni, 2019. "Pathway Analysis of a Zero-Emission Transition in the Nordic-Baltic Region," Energies, MDPI, vol. 12(17), pages 1-20, August.
    8. Backe, Stian & Zwickl-Bernhard, Sebastian & Schwabeneder, Daniel & Auer, Hans & Korpås, Magnus & Tomasgard, Asgeir, 2022. "Impact of energy communities on the European electricity and heating system decarbonization pathway: Comparing local and global flexibility responses," Applied Energy, Elsevier, vol. 323(C).
    9. Stawska, Anna & Romero, Natalia & de Weerdt, Mathijs & Verzijlbergh, Remco, 2021. "Demand response: For congestion management or for grid balancing?," Energy Policy, Elsevier, vol. 148(PA).
    10. Beaufils, Timothé & Pineau, Pierre-Olivier, 2019. "Assessing the impact of residential load profile changes on electricity distribution utility revenues under alternative rate structures," Utilities Policy, Elsevier, vol. 61(C).
    11. Vaughan, Jim & Doumen, Sjoerd C. & Kok, Koen, 2023. "Empowering tomorrow, controlling today: A multi-criteria assessment of distribution grid tariff designs," Applied Energy, Elsevier, vol. 341(C).
    12. Morell-Dameto, Nicolás & Chaves-Ávila, José Pablo & Gómez San Román, Tomás & Dueñas-Martínez, Pablo & Schittekatte, Tim, 2024. "Network tariff design with flexible customers: Ex-post pricing and a local network capacity market for customer response coordination," Energy Policy, Elsevier, vol. 184(C).
    13. Mortensen, Anders Winther & Mathiesen, Brian Vad & Hansen, Anders Bavnhøj & Pedersen, Sigurd Lauge & Grandal, Rune Duban & Wenzel, Henrik, 2020. "The role of electrification and hydrogen in breaking the biomass bottleneck of the renewable energy system – A study on the Danish energy system," Applied Energy, Elsevier, vol. 275(C).
    14. Liu, Xuezhi & Yan, Zheng & Wu, Jianzhong, 2019. "Optimal coordinated operation of a multi-energy community considering interactions between energy storage and conversion devices," Applied Energy, Elsevier, vol. 248(C), pages 256-273.
    15. Askeland, Magnus & Backe, Stian & Bjarghov, Sigurd & Korpås, Magnus, 2021. "Helping end-users help each other: Coordinating development and operation of distributed resources through local power markets and grid tariffs," Energy Economics, Elsevier, vol. 94(C).
    16. Østergaard, P.A. & Lund, H. & Thellufsen, J.Z. & Sorknæs, P. & Mathiesen, B.V., 2022. "Review and validation of EnergyPLAN," Renewable and Sustainable Energy Reviews, Elsevier, vol. 168(C).
    17. Javier Borquez & Hector Chavez & Karina A. Barbosa & Marcela Jamett & Rodrigo Acuna, 2020. "A Simple Distribution Energy Tariff under the Penetration of DG," Energies, MDPI, vol. 13(8), pages 1-17, April.
    18. Timothé Beaufils & Pierre-Olivier Pineau, 2018. "Structures tarifaires et spirale de la mort : État des lieux des pratiques de tarification dans la distribution d’électricité résidentielle," CIRANO Working Papers 2018s-27, CIRANO.
    19. Osaru Agbonaye & Patrick Keatley & Ye Huang & Motasem Bani Mustafa & Neil Hewitt, 2020. "Design, Valuation and Comparison of Demand Response Strategies for Congestion Management," Energies, MDPI, vol. 13(22), pages 1-29, November.
    20. Kirkerud, Jon Gustav & Trømborg, Erik & Bolkesjø, Torjus Folsland, 2016. "Impacts of electricity grid tariffs on flexible use of electricity to heat generation," Energy, Elsevier, vol. 115(P3), pages 1679-1687.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:126:y:2019:i:c:p:12-21. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.