IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v279y2020ics0306261920313040.html
   My bibliography  Save this article

Probabilistic impact of electricity tariffs on distribution grids considering adoption of solar and storage technologies

Author

Listed:
  • Heleno, Miguel
  • Sehloff, David
  • Coelho, Antonio
  • Valenzuela, Alan

Abstract

This paper models the role of electricity tariffs on the long-term adoption of photovoltaic and storage technologies as well as the consequent impact on the distribution grid. An adoption model that captures the economic rationality of tariff-driven investments and considers the stochastic nature of individual consumers’ decisions is proposed. This model is then combined with a probabilistic load flow to evaluate the long-term impacts of the adoption on the voltage profiles of the distribution grid. To illustrate the methodology, different components of the electricity tariffs, including solar compensation mechanisms and time differentiation of Time-of-Use (ToU) rates, are evaluated, using a case study involving a section of a medium-voltage network with 118 nodes.

Suggested Citation

  • Heleno, Miguel & Sehloff, David & Coelho, Antonio & Valenzuela, Alan, 2020. "Probabilistic impact of electricity tariffs on distribution grids considering adoption of solar and storage technologies," Applied Energy, Elsevier, vol. 279(C).
    • Handle: RePEc:eee:appene:v:279:y:2020:i:c:s0306261920313040
    DOI: 10.1016/j.apenergy.2020.115826
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306261920313040
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.apenergy.2020.115826?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ratnam, Elizabeth L. & Weller, Steven R. & Kellett, Christopher M., 2015. "An optimization-based approach to scheduling residential battery storage with solar PV: Assessing customer benefit," Renewable Energy, Elsevier, vol. 75(C), pages 123-134.
    2. Yamamoto, Yoshihiro, 2017. "Feed-in tariffs combined with capital subsidies for promoting the adoption of residential photovoltaic systems," Energy Policy, Elsevier, vol. 111(C), pages 312-320.
    3. Darghouth, Naïm R. & Barbose, Galen & Wiser, Ryan H., 2014. "Customer-economics of residential photovoltaic systems (Part 1): The impact of high renewable energy penetrations on electricity bill savings with net metering," Energy Policy, Elsevier, vol. 67(C), pages 290-300.
    4. Mashayekh, Salman & Stadler, Michael & Cardoso, Gonçalo & Heleno, Miguel, 2017. "A mixed integer linear programming approach for optimal DER portfolio, sizing, and placement in multi-energy microgrids," Applied Energy, Elsevier, vol. 187(C), pages 154-168.
    5. Londo, Marc & Matton, Robin & Usmani, Omar & van Klaveren, Marieke & Tigchelaar, Casper & Brunsting, Suzanne, 2020. "Alternatives for current net metering policy for solar PV in the Netherlands: A comparison of impacts on business case and purchasing behaviour of private homeowners, and on governmental costs," Renewable Energy, Elsevier, vol. 147(P1), pages 903-915.
    6. Chesser, Michael & Hanly, Jim & Cassells, Damien & Apergis, Nicholas, 2018. "The positive feedback cycle in the electricity market: Residential solar PV adoption, electricity demand and prices," Energy Policy, Elsevier, vol. 122(C), pages 36-44.
    7. Heymann, Fabian & Miranda, Vladimiro & Soares, Filipe Joel & Duenas, Pablo & Perez Arriaga, Ignacio & Prata, Ricardo, 2019. "Orchestrating incentive designs to reduce adverse system-level effects of large-scale EV/PV adoption – The case of Portugal," Applied Energy, Elsevier, vol. 256(C).
    8. Ramírez, F. Javier & Honrubia-Escribano, A. & Gómez-Lázaro, E. & Pham, Duc T., 2017. "Combining feed-in tariffs and net-metering schemes to balance development in adoption of photovoltaic energy: Comparative economic assessment and policy implications for European countries," Energy Policy, Elsevier, vol. 102(C), pages 440-452.
    9. Sani Hassan, Abubakar & Cipcigan, Liana & Jenkins, Nick, 2018. "Impact of optimised distributed energy resources on local grid constraints," Energy, Elsevier, vol. 142(C), pages 878-895.
    10. Anderson, Soren T. & Newell, Richard G., 2004. "Information programs for technology adoption: the case of energy-efficiency audits," Resource and Energy Economics, Elsevier, vol. 26(1), pages 27-50, March.
    11. López Prol, Javier & Steininger, Karl W., 2017. "Photovoltaic self-consumption regulation in Spain: Profitability analysis and alternative regulation schemes," Energy Policy, Elsevier, vol. 108(C), pages 742-754.
    12. Barbour, Edward & González, Marta C., 2018. "Projecting battery adoption in the prosumer era," Applied Energy, Elsevier, vol. 215(C), pages 356-370.
    13. Talent, Orlando & Du, Haiping, 2018. "Optimal sizing and energy scheduling of photovoltaic-battery systems under different tariff structures," Renewable Energy, Elsevier, vol. 129(PA), pages 513-526.
    14. Sioshansi, Ramteen, 2016. "Retail electricity tariff and mechanism design to incentivize distributed renewable generation," Energy Policy, Elsevier, vol. 95(C), pages 498-508.
    15. Ren, Zhengen & Grozev, George & Higgins, Andrew, 2016. "Modelling impact of PV battery systems on energy consumption and bill savings of Australian houses under alternative tariff structures," Renewable Energy, Elsevier, vol. 89(C), pages 317-330.
    16. Kabir, M.N. & Mishra, Y. & Bansal, R.C., 2016. "Probabilistic load flow for distribution systems with uncertain PV generation," Applied Energy, Elsevier, vol. 163(C), pages 343-351.
    17. Thormeyer, Christoph & Sasse, Jan-Philipp & Trutnevyte, Evelina, 2020. "Spatially-explicit models should consider real-world diffusion of renewable electricity: Solar PV example in Switzerland," Renewable Energy, Elsevier, vol. 145(C), pages 363-374.
    18. Sani Hassan, Abubakar & Cipcigan, Liana & Jenkins, Nick, 2017. "Optimal battery storage operation for PV systems with tariff incentives," Applied Energy, Elsevier, vol. 203(C), pages 422-441.
    19. von Appen, J. & Braun, M., 2018. "Interdependencies between self-sufficiency preferences, techno-economic drivers for investment decisions and grid integration of residential PV storage systems," Applied Energy, Elsevier, vol. 229(C), pages 1140-1151.
    20. Darghouth, Naïm R. & Barbose, Galen & Wiser, Ryan, 2011. "The impact of rate design and net metering on the bill savings from distributed PV for residential customers in California," Energy Policy, Elsevier, vol. 39(9), pages 5243-5253, September.
    21. Candas, Soner & Siala, Kais & Hamacher, Thomas, 2019. "Sociodynamic modeling of small-scale PV adoption and insights on future expansion without feed-in tariffs," Energy Policy, Elsevier, vol. 125(C), pages 521-536.
    22. Maheshwari, Aditya & Heleno, Miguel & Ludkovski, Michael, 2020. "The effect of rate design on power distribution reliability considering adoption of distributed energy resources," Applied Energy, Elsevier, vol. 268(C).
    23. Ossenbrink, Jan, 2017. "How feed-in remuneration design shapes residential PV prosumer paradigms," Energy Policy, Elsevier, vol. 108(C), pages 239-255.
    24. Koumparou, Ioannis & Christoforidis, Georgios C. & Efthymiou, Venizelos & Papagiannis, Grigoris K. & Georghiou, George E., 2017. "Configuring residential PV net-metering policies – A focus on the Mediterranean region," Renewable Energy, Elsevier, vol. 113(C), pages 795-812.
    25. Milis, Kevin & Peremans, Herbert & Van Passel, Steven, 2018. "Steering the adoption of battery storage through electricity tariff design," Renewable and Sustainable Energy Reviews, Elsevier, vol. 98(C), pages 125-139.
    26. Cai, Desmond W.H. & Adlakha, Sachin & Low, Steven H. & De Martini, Paul & Mani Chandy, K., 2013. "Impact of residential PV adoption on Retail Electricity Rates," Energy Policy, Elsevier, vol. 62(C), pages 830-843.
    27. Cardoso, G. & Stadler, M. & Bozchalui, M.C. & Sharma, R. & Marnay, C. & Barbosa-Póvoa, A. & Ferrão, P., 2014. "Optimal investment and scheduling of distributed energy resources with uncertainty in electric vehicle driving schedules," Energy, Elsevier, vol. 64(C), pages 17-30.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. To, Thanh & Heleno, Miguel & Valenzuela, Alan, 2022. "Risk-constrained multi-period investment model for Distributed Energy Resources considering technology costs and regulatory uncertainties," Applied Energy, Elsevier, vol. 319(C).
    2. Alnaser, Sahban W. & Althaher, Sereen Z. & Long, Chao & Zhou, Yue & Wu, Jianzhong & Hamdan, Reem, 2021. "Transition towards solar Photovoltaic Self-Consumption policies with Batteries: From the perspective of distribution networks," Applied Energy, Elsevier, vol. 304(C).
    3. Heleno, Miguel & Sigrin, Benjamin & Popovich, Natalie & Heeter, Jenny & Jain Figueroa, Anjuli & Reiner, Michael & Reames, Tony, 2022. "Optimizing equity in energy policy interventions: A quantitative decision-support framework for energy justice," Applied Energy, Elsevier, vol. 325(C).
    4. Gržanić, M. & Capuder, T. & Zhang, N. & Huang, W., 2022. "Prosumers as active market participants: A systematic review of evolution of opportunities, models and challenges," Renewable and Sustainable Energy Reviews, Elsevier, vol. 154(C).
    5. Ali, Aliyuda, 2021. "Data-driven based machine learning models for predicting the deliverability of underground natural gas storage in salt caverns," Energy, Elsevier, vol. 229(C).
    6. Rossi, Federico & Heleno, Miguel & Basosi, Riccardo & Sinicropi, Adalgisa, 2021. "LCA driven solar compensation mechanism for Renewable Energy Communities: the Italian case," Energy, Elsevier, vol. 235(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. To, Thanh & Heleno, Miguel & Valenzuela, Alan, 2022. "Risk-constrained multi-period investment model for Distributed Energy Resources considering technology costs and regulatory uncertainties," Applied Energy, Elsevier, vol. 319(C).
    2. Heleno, Miguel & Sigrin, Benjamin & Popovich, Natalie & Heeter, Jenny & Jain Figueroa, Anjuli & Reiner, Michael & Reames, Tony, 2022. "Optimizing equity in energy policy interventions: A quantitative decision-support framework for energy justice," Applied Energy, Elsevier, vol. 325(C).
    3. Maheshwari, Aditya & Heleno, Miguel & Ludkovski, Michael, 2020. "The effect of rate design on power distribution reliability considering adoption of distributed energy resources," Applied Energy, Elsevier, vol. 268(C).
    4. Ahmed S. Alahmed & Lang Tong, 2022. "Integrating Distributed Energy Resources: Optimal Prosumer Decisions and Impacts of Net Metering Tariffs," Papers 2204.06115, arXiv.org, revised May 2022.
    5. Darghouth, Naïm R. & Wiser, Ryan H. & Barbose, Galen & Mills, Andrew D., 2016. "Net metering and market feedback loops: Exploring the impact of retail rate design on distributed PV deployment," Applied Energy, Elsevier, vol. 162(C), pages 713-722.
    6. Barbour, Edward & González, Marta C., 2018. "Projecting battery adoption in the prosumer era," Applied Energy, Elsevier, vol. 215(C), pages 356-370.
    7. Castaneda, Monica & Jimenez, Maritza & Zapata, Sebastian & Franco, Carlos J. & Dyner, Isaac, 2017. "Myths and facts of the utility death spiral," Energy Policy, Elsevier, vol. 110(C), pages 105-116.
    8. Opoku, Richard & Obeng, George Y. & Adjei, Eunice A. & Davis, Francis & Akuffo, Fred O., 2020. "Integrated system efficiency in reducing redundancy and promoting residential renewable energy in countries without net-metering: A case study of a SHS in Ghana," Renewable Energy, Elsevier, vol. 155(C), pages 65-78.
    9. Say, Kelvin & John, Michele & Dargaville, Roger, 2019. "Power to the people: Evolutionary market pressures from residential PV battery investments in Australia," Energy Policy, Elsevier, vol. 134(C).
    10. L. (Lisa B.) Ryan & Sarah La Monaca & Linda Mastrandrea & Petr Spodniak, 2018. "Harnessing Electricity Retail Tariffs to Support Climate Change Policy," Working Papers 201822, School of Economics, University College Dublin.
    11. Sheikhhoseini, Mousa & Rashidinejad, Masoud & Ameri, Mehran & Abdollahi, Amir, 2018. "Economic analysis of support policies for residential photovoltaic systems in Iran," Energy, Elsevier, vol. 165(PA), pages 853-866.
    12. Moncada, J.A. & Tao, Z. & Valkering, P. & Meinke-Hubeny, F. & Delarue, E., 2021. "Influence of distribution tariff structures and peer effects on the adoption of distributed energy resources," Applied Energy, Elsevier, vol. 298(C).
    13. Azuatalam, Donald & Paridari, Kaveh & Ma, Yiju & Förstl, Markus & Chapman, Archie C. & Verbič, Gregor, 2019. "Energy management of small-scale PV-battery systems: A systematic review considering practical implementation, computational requirements, quality of input data and battery degradation," Renewable and Sustainable Energy Reviews, Elsevier, vol. 112(C), pages 555-570.
    14. Zhang, Yijie & Ma, Tao & Yang, Hongxing, 2022. "Grid-connected photovoltaic battery systems: A comprehensive review and perspectives," Applied Energy, Elsevier, vol. 328(C).
    15. Dasí-Crespo, Daniel & Roldán-Blay, Carlos & Escrivá-Escrivá, Guillermo & Roldán-Porta, Carlos, 2023. "Evaluation of the Spanish regulation on self-consumption photovoltaic installations. A case study based on a rural municipality in Spain," Renewable Energy, Elsevier, vol. 204(C), pages 788-802.
    16. Cardoso, Gonçalo & Brouhard, Thomas & DeForest, Nicholas & Wang, Dai & Heleno, Miguel & Kotzur, Leander, 2018. "Battery aging in multi-energy microgrid design using mixed integer linear programming," Applied Energy, Elsevier, vol. 231(C), pages 1059-1069.
    17. Alnaser, Sahban W. & Althaher, Sereen Z. & Long, Chao & Zhou, Yue & Wu, Jianzhong & Hamdan, Reem, 2021. "Transition towards solar Photovoltaic Self-Consumption policies with Batteries: From the perspective of distribution networks," Applied Energy, Elsevier, vol. 304(C).
    18. Fikru, Mahelet G., 2019. "Estimated electricity bill savings for residential solar photovoltaic system owners: Are they accurate enough?," Applied Energy, Elsevier, vol. 253(C), pages 1-1.
    19. Say, Kelvin & John, Michele & Dargaville, Roger & Wills, Raymond T., 2018. "The coming disruption: The movement towards the customer renewable energy transition," Energy Policy, Elsevier, vol. 123(C), pages 737-748.
    20. Hidayatno, Akhmad & Setiawan, Andri D. & Wikananda Supartha, I Made & Moeis, Armand O. & Rahman, Irvanu & Widiono, Eddie, 2020. "Investigating policies on improving household rooftop photovoltaics adoption in Indonesia," Renewable Energy, Elsevier, vol. 156(C), pages 731-742.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:appene:v:279:y:2020:i:c:s0306261920313040. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.