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Grid tariff designs coping with the challenges of electrification and their socio-economic impacts

Author

Listed:
  • Philipp Andreas Gunkel

    (Energy Economics and System Analysis, DTU Management, Technical University of Denmark, 2800 Kongens Lyngby, Denmark)

  • Claire-Marie Bergaentzl'e

    (Energy Economics and System Analysis, DTU Management, Technical University of Denmark, 2800 Kongens Lyngby, Denmark)

  • Dogan Keles

    (Energy Economics and System Analysis, DTU Management, Technical University of Denmark, 2800 Kongens Lyngby, Denmark)

  • Fabian Scheller

    (Energy Economics and System Analysis, DTU Management, Technical University of Denmark, 2800 Kongens Lyngby, Denmark
    Faculty of Business and Engineering, University of Applied Sciences Wurzburg-Schweinfurt, Ignaz-Schon-Street 11, 97421 Schweinfurt, Germany)

  • Henrik Klinge Jacobsen

    (Energy Economics and System Analysis, DTU Management, Technical University of Denmark, 2800 Kongens Lyngby, Denmark)

Abstract

This paper investigates volumetric grid tariff designs under consideration of different pricing mechanisms and resulting cost allocation across socio-techno-economic consumer categories. In a case study of 1.56 million Danish households divided into 90 socio-techno-economic categories, we compare three alternative grid tariffs and investigate their impact on annual electricity bills. The results of our design consisting of a time-dependent threshold penalizing individual peak consumption and a system peak tariff show (a) a range of different allocations that distribute the burden of additional grid costs across both technologies and (b) strong positive outcomes, including reduced expenses for lower-income groups and smaller households.

Suggested Citation

  • Philipp Andreas Gunkel & Claire-Marie Bergaentzl'e & Dogan Keles & Fabian Scheller & Henrik Klinge Jacobsen, 2022. "Grid tariff designs coping with the challenges of electrification and their socio-economic impacts," Papers 2210.03514, arXiv.org, revised Aug 2023.
    • Handle: RePEc:arx:papers:2210.03514
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