Residential Demand-Side Flexibility Provision Under a Multi-Level Segmented Tariff

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Abstract

This paper proposes a multi-level segmented tariff to encourage consumers to provide demand response using a battery. The aim of the tariff is to (i) properly reflect consumers’ contribution to the distribution grid cost while ensuring cost recovery for the distribution network operator and (ii) to provide consumers with a financial incentive to flatten their load profile and avoid peak demand. An optimization problem is formulated to describe how consumers can provide demand response by managing their batteries. To evaluate the effectiveness of the proposed multi-level segmented tariff, four case studies were conducted. The results indicate that the multi-level segmented tariff is the most effective in reducing coincident peak demand, with a reduction of 22%. Policymakers and regulators are recommended to consider multi-level segmented distribution tariffs, as it provides an incentive to consumers to manage their assets to provide demand response.
Original languageEnglish
Title of host publicationProceedings of 2023 IEEE PES Innovative Smart Grid Technologies Europe, ISGT EUROPE 2023
PublisherIEEE
Number of pages5
ISBN (Electronic)979-8-3503-9678-2
ISBN (Print)979-8-3503-9679-9
DOIs
Publication statusPublished - 2023
Event2023 IEEE PES Innovative Smart Grid Technologies Europe (ISGT EUROPE) - Grenoble, France
Duration: 23 Oct 202326 Oct 2023

Publication series

NameIEEE PES Innovative Smart Grid Technologies Conference Europe

Conference

Conference2023 IEEE PES Innovative Smart Grid Technologies Europe (ISGT EUROPE)
Country/TerritoryFrance
City Grenoble
Period23/10/2326/10/23

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

  • Cost recovery
  • Cost reflectivity
  • Demand-side flexibility
  • Distribution network
  • Multi-level segmented tariff

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