Power-Based Tariff as an Incentive for Distribution System Operator’s Customers to Reduce their Peak Powers

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Paper number

629

Working Group Number

Conference name

CIRED 2019

Conference date

3-6 June 2019

Conference location

Madrid, Spain

Peer-reviewed

Yes

Short title

Convener

Authors

Koski, Anmari, Elenia Oy, Finland
Järvenpää, Juha, Elenia Oy, Finland
Salo, Johannes, Elenia Oy, Finland
Järvinen, Mikko, Elenia Oy, Finland
Pylvänäinen, Jouni, Elenia Oy, Finland
Honkapuro, Samuli , LUT University, Finland

Abstract

Electric vehicles are becoming more common which increases load peaks in the distribution network, while growing amount of micro-generation decreases the delivered energy. At present, the distribution pricing is mainly based on delivered energy even though the dimensioning of the network is based on peak demand. In the future, the amount of delivered energy may decrease even though peak demand would rise. For distribution system operators (DSO), with energy-based pricing, this would mean that the business income decreases, and the costs increase due to the growing need to strengthen the network. For the distribution pricing to be more cost reflective, the pricing should be renewed to be partly based on peak demand. Due to the above-mentioned aspects, the Finnish DSO Elenia Ltd. (Elenia) examined the incentive effect of a power-based tariff on its customers’ power usage in a pilot project. This paper focuses on the DSO’s customers’ willingness and ability to reduce their peak powers due to a power-based tariff.

Table of content

Keywords

Publisher

AIM

Date

2019-06-03

Permanent link to this record

https://cired-repository.org/handle/20.500.12455/88
http://dx.doi.org/10.34890/176

ISSN

2032-9644

ISBN

978-2-9602415-0-1