Technical and Economic Impact of Residential BESS on Distribution Systems Under Alternative Tariff Regimes

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Paper number

942

Working Group Number

Conference name

CIRED 2019

Conference date

3-6 June 2019

Conference location

Madrid, Spain

Peer-reviewed

Yes

Short title

Convener

Authors

Douglass, Philip, Danish Energy, Denmark
Hou, Peng, Technical University of Denmark, Denmark
Martens, Sebastian, Danish Energy, Denmark
Yang, Guangya, Technical University of Denmark, Denmark

Abstract

Residential battery energy storage systems (BESS) will alter power flows in distribution systems, which in turn will impact DSO revenue streams. This paper simulates operation of residential BESS when exposed to varying volumetric (€/kWh) and capacity (€/kW) tariffs. The BESS is optimized for maximizing private profit when trading in the day-ahead market (DAM), assuming a perfect forecast. Aggregate behavior of a population of 300 prosumers with BESS is compared for the alternative tariff scenarios. 24-hour load profiles suitable for planning are derived for each tariff scenario.The simulations show that optimal BESS operation with volumetric tariffs will lead the range of load, the difference between peak consumption to peak production, to almost double relative to the base case without BESS, as BESS take advantage of fluctuations in DAM prices. Capacity tariffs can reduce the range of load by almost half relative to the base case, but at the expense of an increased cost of energy in the DAM. Analysis shows that capacity tariffs are most effective at utilizing network capacity, with BESS customers typically earning 2.30 € per month in the DAM for each kW of network capacity they utilize, while volumetric tariffs lead BESS customers to earn only 1.25 € per customer per month.

Table of content

Keywords

Publisher

AIM

Date

2019-06-03

Permanent link to this record

https://cired-repository.org/handle/20.500.12455/209
http://dx.doi.org/10.34890/406

ISSN

2032-9644

ISBN

978-2-9602415-0-1