Economic and Operational Implications of Demand Charge for Distribution Systems with Renewable Energy

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CIRED 2018 Ljubljana WS - 0183 - 20957.pdf (530.37 KB)

Paper number

0183

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Conference name

CIRED 2018 Ljubljana Workshop

Conference date

7 - 8 June 2018

Conference location

Ljubljana, Slovenia

Peer-reviewed

Yes

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Convener

Authors

fang, chen, Electric Power Research Institute, State Grid Shanghai Municipal Electric Power Company, China
Cao, 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.

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Publisher

AIM

Date

2018-06-07

Published in

CIRED 2018 Ljubljana Workshop on Microgrids and Local Energy Communities

Permanent link to this record

https://www.cired-repository.org/handle/20.500.12455/1226
http://dx.doi.org/10.34890/364

ISSN

2032-9628

ISBN

978-2-9602415-1-8