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Feed-in tariff design for domestic scale grid-connected PV systems using high resolution household electricity demand data

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  • Ayompe, L.M.
  • Duffy, A.

Abstract

The advent of large samples of smart metering data allows policymakers to design Feed-in Tariffs which are more targeted and efficient. This paper presents a methodology which uses these data to design FITs for domestic scale grid-connected PV systems in Ireland. A sample of 2551 household electricity demand data collected at 1/2-hourly intervals, electricity output from a 2.82kWp PV system over the same time interval as well as PV system costs and electricity tariffs were used to determine the required FIT to make it worthwhile for the households to invest in the PV system. The methodology shows that it is possible to design single, multiple and continuous FITs. Continuous FITs are the most efficient and result in no overcompensation to the housholder while single and multiple FITs are less efficient since they result in different levels of overcompensation. In the PV case study considered, it was shown that the use of three FITs (0.3170, 0.3315 and 0.3475€/kWh) resulted in a 59.6% reduction in overcompensation compared to a single FIT of 0.3475€/kWh; assuming immediate and complete uptake of the technology, this would result in NPV savings of over €597m to the Irish government over a 25 year lifetime.

Suggested Citation

  • Ayompe, L.M. & Duffy, A., 2013. "Feed-in tariff design for domestic scale grid-connected PV systems using high resolution household electricity demand data," Energy Policy, Elsevier, vol. 61(C), pages 619-627.
    • Handle: RePEc:eee:enepol:v:61:y:2013:i:c:p:619-627
    DOI: 10.1016/j.enpol.2013.06.102
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    References listed on IDEAS

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    Cited by:

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    3. Hussain, C.M. Iftekhar & Norton, Brian & Duffy, Aidan, 2017. "Technological assessment of different solar-biomass systems for hybrid power generation in Europe," Renewable and Sustainable Energy Reviews, Elsevier, vol. 68(P2), pages 1115-1129.
    4. Hussain Ali Bekhet & Lee Lian Ivy-Yap, 2014. "Highlighting Energy Policies and Strategies for the Residential Sector in Malaysia," International Journal of Energy Economics and Policy, Econjournals, vol. 4(3), pages 448-456.
    5. Rossi, Federico & Heleno, Miguel & Basosi, Riccardo & Sinicropi, Adalgisa, 2021. "LCA driven solar compensation mechanism for Renewable Energy Communities: the Italian case," Energy, Elsevier, vol. 235(C).
    6. Say, Kelvin & John, Michele & Dargaville, Roger, 2019. "Power to the people: Evolutionary market pressures from residential PV battery investments in Australia," Energy Policy, Elsevier, vol. 134(C).
    7. Mao, Guozhu & Liu, Xi & Du, Huibin & Zuo, Jian & Wang, Linyuan, 2015. "Way forward for alternative energy research: A bibliometric analysis during 1994–2013," Renewable and Sustainable Energy Reviews, Elsevier, vol. 48(C), pages 276-286.
    8. Liu, Cengceng & Li, Nan & Zha, Donglan, 2016. "On the impact of FIT policies on renewable energy investment: Based on the solar power support policies in China's power market," Renewable Energy, Elsevier, vol. 94(C), pages 251-267.
    9. Hirvonen, Janne & Kayo, Genku & Cao, Sunliang & Hasan, Ala & Sirén, Kai, 2015. "Renewable energy production support schemes for residential-scale solar photovoltaic systems in Nordic conditions," Energy Policy, Elsevier, vol. 79(C), pages 72-86.
    10. Zhang, M.M. & Zhou, D.Q. & Zhou, P. & Liu, G.Q., 2016. "Optimal feed-in tariff for solar photovoltaic power generation in China: A real options analysis," Energy Policy, Elsevier, vol. 97(C), pages 181-192.
    11. Lu, Yuehong & Zhang, Xiao-Ping & Huang, Zhijia & Lu, Jinli & Wang, Dong, 2019. "Impact of introducing penalty-cost on optimal design of renewable energy systems for net zero energy buildings," Applied Energy, Elsevier, vol. 235(C), pages 106-116.
    12. Firozjaei, Hamzeh Karimi & Firozjaei, Mohammad Karimi & Nematollahi, Omid & Kiavarz, Majid & Alavipanah, Seyed Kazem, 2020. "On the effect of geographical, topographic and climatic conditions on feed-in tariff optimization for solar photovoltaic electricity generation: A case study in Iran," Renewable Energy, Elsevier, vol. 153(C), pages 430-439.
    13. Mukisa, Nicholas & Zamora, Ramon & Lie, Tek Tjing, 2021. "Store-on grid scheme model for grid-tied solar photovoltaic systems for industrial sector application: Benefits analysis," Renewable Energy, Elsevier, vol. 171(C), pages 1257-1275.
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