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Energies 2017, 10(6), 778; doi:10.3390/en10060778

Evaluation Methodology for Tariff Design under Escalating Penetrations of Distributed Energy Resources

1
Institute for Research in Technology, Comillas Pontifical University, Madrid 28015, Spain
2
Faculty of Technology, Policy and Management, Delft University of Technology, Delft 2628, The Netherlands
3
Faculty of Electrical and Control Engineering, Arab Academy for Science, Technology and Maritime Transport, Cairo 11361, Egypt
*
Author to whom correspondence should be addressed.
Academic Editor: Peter V. Schaeffer
Received: 22 March 2017 / Revised: 2 May 2017 / Accepted: 1 June 2017 / Published: 5 June 2017
(This article belongs to the Section Electrical Power and Energy System)
View Full-Text   |   Download PDF [4465 KB, uploaded 5 June 2017]   |  

Abstract

As the penetration of distributed energy resources (DERs) escalates in distribution networks, new network tariffs are needed to cope with this new situation. These tariffs should allocate network costs to users, promoting an efficient use of the distribution network. This paper proposes a methodology to evaluate and compare network tariff designs. Four design attributes are proposed for this aim: (i) network cost recovery; (ii) deferral of network reinforcements; (iii) efficient consumer response; (iv) recognition of side-effects on consumers. Through an analytical hierarchy process (AHP), the evaluation methodology is applied to compare traditional cost allocation methods, on the basis of 100% energy, 100% demand, and 50% energy-50% demand, with more advanced pricing methods based on distribution locational marginal prices in combination with cost-reflective network charges. Numerical results are obtained through a case study based on the IEEE 34-node test feeder with DER integration. The results illustrate the advantage of advanced pricing methods to promote an efficient integration of DER and demand price-response from consumers. View Full-Text
Keywords: analytical hierarchy process; distributed energy resources; distribution locational marginal prices; distribution network tariff; peak-coincidence network charges analytical hierarchy process; distributed energy resources; distribution locational marginal prices; distribution network tariff; peak-coincidence network charges
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This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).

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MDPI and ACS Style

Abdelmotteleb, I.; Gómez, T.; Reneses, J. Evaluation Methodology for Tariff Design under Escalating Penetrations of Distributed Energy Resources. Energies 2017, 10, 778.

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