Aligning prosumers with the electricity wholesale market: The impact of time-varying price signals and fixed network charges on solar self consumption

Martin Klein, Ahmad Ziade, Laurens De Vries

Research output: Contribution to journalArticleScientificpeer-review

10 Citations (Scopus)
19 Downloads (Pure)

Abstract

PV-battery systems are currently not operated in an energy system optimal way as their operation heuristic (maximization of self-consumption) is generally unaffected by competitive market signals. To evaluate potential regulatory intervention, we propose a market alignment indicator which measures the relative economic efficiency of a prosumer battery compared to a benchmark system that is completely responsive to wholesale market prices. Investigating the case of PV-battery systems in Germany, we find that scarcity signals transmitted to prosumers improve the market alignment of PV-battery systems while retaining similar levels of self-consumption and autarky rates. Both dynamic prices for generation (time-varying feed-in remuneration) and consumption (real-time electricity prices) can improve welfare, that is lowering consumer expenditures for electricity at the wholesale market. The effectiveness of the respective instrument mix depends on the relative levels of the feed-in tariff, the grid consumption to be saved and the solar generation costs. Accordingly, increasing fixed network charges can have a significant positive impact on the market alignment of prosumer batteries if combined with dynamic prices, as they change the relative composition of retail prices.
Original languageEnglish
Article number110901
Number of pages16
JournalEnergy Policy
Volume134
DOIs
Publication statusPublished - 2019

Bibliographical note

Green Open Access added to TU Delft Institutional Repository ‘You share, we take care!’ – Taverne project https://www.openaccess.nl/en/you-share-we-take-care Otherwise as indicated in the copyright section: the publisher is the copyright holder of this work and the author uses the Dutch legislation to make this work public.

Keywords

  • Dynamic prices
  • Fixed network charges
  • Market alignment
  • Photovoltaics
  • Prosumer
  • PV-battery systems

Fingerprint

Dive into the research topics of 'Aligning prosumers with the electricity wholesale market: The impact of time-varying price signals and fixed network charges on solar self consumption'. Together they form a unique fingerprint.

Cite this