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

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  • Kristoffer Christensen

    (Center for Energy Informatics, University of Southern Denmark, Campusvej 55, 5230 Odense, Denmark)

  • Zheng Ma

    (Center for Health Informatics and Technology, University of Southern Denmark, Campusvej 55, 5230 Odense, Denmark)

  • Bo Nørregaard Jørgensen

    (Center for Energy Informatics, University of Southern Denmark, Campusvej 55, 5230 Odense, Denmark)

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.

Suggested Citation

  • Kristoffer Christensen & Zheng Ma & Bo Nørregaard Jørgensen, 2021. "Technical, Economic, Social and Regulatory Feasibility Evaluation of Dynamic Distribution Tariff Designs," Energies, MDPI, vol. 14(10), pages 1-24, May.
    • Handle: RePEc:gam:jeners:v:14:y:2021:i:10:p:2860-:d:555452
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    References listed on IDEAS

    as
    1. Athila Quaresma Santos & Zheng Ma & Casper Gellert Olsen & Bo Nørregaard Jørgensen, 2018. "Framework for Microgrid Design Using Social, Economic, and Technical Analysis," Energies, MDPI, vol. 11(10), pages 1-22, October.
    2. Zheng Ma & Mette Jessen Schultz & Kristoffer Christensen & Magnus Værbak & Yves Demazeau & Bo Nørregaard Jørgensen, 2019. "The Application of Ontologies in Multi-Agent Systems in the Energy Sector: A Scoping Review," Energies, MDPI, vol. 12(16), pages 1-31, August.
    3. Mlecnik, Erwin & Parker, James & Ma, Zheng & Corchero, Cristina & Knotzer, Armin & Pernetti, Roberta, 2020. "Policy challenges for the development of energy flexibility services," Energy Policy, Elsevier, vol. 137(C).
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    1. Simeone, Christina E. & Gagnon, Pieter & Cappers, Peter & Satchwell, Andrew, 2023. "The bill alignment test: Identifying trade-offs with residential rate design options," Utilities Policy, Elsevier, vol. 82(C).

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