Grid tariff designs coping with the challenges of electrification and their socio-economic impacts

2022/10/07 by Gunkel, Philipp Andreas, Bergaentzlé, Claire-Marie, Keles, Dogan +2
#FOS: Economics and business #General Economics (econ.GN)

paper · doi:10.48550/arxiv.2210.03514

Abstract

This paper investigates volumetric grid tariff designs under consideration of different pricing mechanisms and resulting cost allocation across socio-techno-economic consumer categories. In a case study of 1.56 million Danish households divided into 90 socio-techno-economic categories, we compare three alternative grid tariffs and investigate their impact on annual electricity bills. The results of our design consisting of a time-dependent threshold penalizing individual peak consumption and a system peak tariff show (a) a range of different allocations that distribute the burden of additional grid costs across both technologies and (b) strong positive outcomes, including reduced expenses for lower-income groups and smaller households.

Related

• Electricity grid tariffs for electrification in households: Bridging the gap between cross-subsidies and fairness
• Grid Tariffs for Peak Demand Reduction: Is there a Price Signal Conflict with Electricity Spot Prices?
• Designing pricing schemes based on progressive tariff and consumer\n grouping in migration to a future smart grid
• Grid Tariffs Based on Capacity Subscription: Multi Year Analysis on Metered Consumer Data
• Variability in electricity consumption by category of consumer: the impact on electricity load profiles