What is a good distribution network tariff?—Developing indicators for performance assessment. (15th July 2022)

• Record Type: Journal Article
• Authors: Hennig, Roman J.; Ribó-Pérez, David; de Vries, Laurens J.; Tindemans, Simon H.
• Is Part Of: Applied energy. Volume 318(2022)
• Publication Date: 2022-07-15
• Subjects: Electric distribution networks -- Tariffs -- Distributed energy resources -- Performance assessment; Power (Mechanics) -- Periodicals; Energy conservation -- Periodicals; Energy conversion -- Periodicals; 621.042
• DOI: 10.1016/j.apenergy.2022.119186
• Languages: English
• ISSNs: 0306-2619

Abstract

Abstract: The adoption of distributed energy resources such as PV cells, electric vehicles and batteries in electric grids is increasing steadily. This brings new challenges for distribution networks. The current network tariffs were not designed for these types of usage and, in many cases, they are not adequate anymore. Thus, many new tariff frameworks have been proposed. In this paper, we focus on the question of how to assess whether a given tariff framework fulfills its objectives. We propose to use quantitative indicators for performance assessment. We give examples of indicators for common objectives and demonstrate how they can be derived from a cost-accounting methodology for distribution networks. Highlights: There is a need for updating distribution network tariffs. However, their performance indicators are poorly defined. We propose quantitative indicators for assessing the performance of network tariffs with respect to regulatory objectives. We further propose a distribution network cost model for obtaining these indicators. We demonstrate the benefits of the proposed methodology in a case study.