Dynamic feed-in tariffs with reduced complexity and their impact on the optimal operation of a combined heat and power plant. (June 2020)

• Record Type: Journal Article
• Authors: Selinger-Lutz, Oliver; Groß, Arne; Wille-Haussmann, Bernhard; Wittwer, Christof
• Is Part Of: International journal of electrical power & energy systems. Volume 118(2020)
• Publication Date: 2020-06
• Subjects: Dynamic pricing -- Flexibility -- Cogeneration -- Optimization -- Smart grid; Electrical engineering -- Periodicals; Electric power systems -- Periodicals; Électrotechnique -- Périodiques; Réseaux électriques (Énergie) -- Périodiques; Electric power systems; Electrical engineering; Periodicals; 621.3
• DOI: 10.1016/j.ijepes.2019.105770
• Languages: English
• ISSNs: 0142-0615

Abstract

Highlights: Concept to deploy distributed flexibility by rewarding system-friendly behavior. Two-step tariff for feed-in electricity with dynamic tariff switching. Comparison with regards to potential for influencing distributed energy systems. Evaluation by simulated operation of a μ-CHP system following the feed-in incentive. Drastic reduction in complexity does not diminish benefits of variable tariffs. Abstract: With increasingly distributed and fluctuating generation of electricity, placing the flexibility of prosumers at the disposal of grid operators is an important step in stabilizing today's energy system. This study proposes and analyzes a concept to deploy distributed flexibility by financially rewarding system-friendly behavior. For the highest benefit, such a tariff manages to shift load to times of high generation and vice versa. The EPEX Day Ahead price was found to be a fitting price signal. Its downside however is its complexity, enhancing the need for advanced metering and communication infrastructure. In this study we introduce a two-step tariff for feed-in electricity with dynamic tariff switching times. The tariff system is implementable with a minimum of both data transfer and structural complexity. The concept is based upon the use of reliable and robust communication technologies and can be launched with commercial hardware components. We compare the dynamic two-step tariff to a state-of-the-art constant feed-in tariff, a static two-step tariff and the highly variable EPEX Day Ahead price. The tariffs are compared with regards to their potential for influencing distributed energy systems. Evaluation is done by simulated operation of a micro-CHP. Following the course of the EPEX Day Ahead price is seen as the optimal reference in the course of this study. The results show that the CHP operation optimized with regards to the introduced dynamic two-step tariff correlates strongly to the operation based on the highly variable incentive.