Economic and Operational Implications of Demand Charge for Distribution Systems with Renewable Energy
Paper number
0183Conference name
CIRED 2018 Ljubljana WorkshopConference date
7 - 8 June 2018Conference location
Ljubljana, SloveniaPeer-reviewed
YesMetadata
Show full item recordAuthors
fang, chen, Electric Power Research Institute, State Grid Shanghai Municipal Electric Power Company, ChinaCao, Weibin, State Grid Shanghai Municipal Electric Power Company, China
Zhang, Duanhong, Shanghai Jiao Tong University, China
Feng, Donghan, Shanghai Jiao Tong University, China
Liu, Zeyu, Shanghai Jiao Tong University, China
Abstract
Demand charge is a tariff option widely used in commercial and industrial sectors. As the demand charge bills on the peak load within a specified period, it is considered a useful pricing tool when the net electricity usage is declining due to distributed renewable integration. We study the retail tariff design problem with demand charge to maximize the social welfare while maintains the utility’s break-even constraint. A Stackelberg game model is adopted to describe the interactions between the retailer and consumers. The tariff design problem is then formulated as a bi-level programming model and transformed into a mathematical program with equilibrium constraints (MPEC). Real-world demand and tariff data are used to show the economic and operational benefits of three different tariff designs.Publisher
AIMDate
2018-06-07Permanent link to this record
https://www.cired-repository.org/handle/20.500.12455/1226http://dx.doi.org/10.34890/364