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Potential impacts of residential PV and battery storage on Australia's electricity networks under different tariffs

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  • Young, Sharon
  • Bruce, Anna
  • MacGill, Iain

Abstract

Australia has one of the highest penetrations of residential PV in the world and is projected to see substantially more deployment in coming years, with a growing proportion of this being coupled with battery energy storage (BES). Previous analysis of the implications of these residential distributed energy resources (DERs) has tended to focus on the individual private benefits to households that deploy them, their direct technical and revenue impacts on network businesses, or broader electricity industry implications. This paper seeks to quantify the economic impacts of residential PV and BES on electricity network businesses, from residential to wholesale market region level. One key impact is reductions in network business revenues as households purchase less electricity from the grid. However, we also consider the potential savings for network businesses as these PV and BES deployments reduce peak network demand from residential to wholesale market level, a key driver of network investment and hence network business costs. Our findings for the Sydney region suggest that potential network investment cost reductions could even outweigh the loss of revenue. Tariff design will have a key role in ensuring that residential PV and BES deployment offers value both to households as well as network businesses.

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  • Young, Sharon & Bruce, Anna & MacGill, Iain, 2019. "Potential impacts of residential PV and battery storage on Australia's electricity networks under different tariffs," Energy Policy, Elsevier, vol. 128(C), pages 616-627.
    • Handle: RePEc:eee:enepol:v:128:y:2019:i:c:p:616-627
    DOI: 10.1016/j.enpol.2019.01.005
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    7. Aniello, Gianmarco & Bertsch, Valentin, 2023. "Shaping the energy transition in the residential sector: Regulatory incentives for aligning household and system perspectives," Applied Energy, Elsevier, vol. 333(C).
    8. Gautier, Axel & Jacqmin, Julien & Poudou, Jean-Christophe, 2021. "Optimal grid tariffs with heterogeneous prosumers," Utilities Policy, Elsevier, vol. 68(C).
    9. Sharma, Vanika & Haque, Mohammed H. & Aziz, Syed Mahfuzul, 2019. "Energy cost minimization for net zero energy homes through optimal sizing of battery storage system," Renewable Energy, Elsevier, vol. 141(C), pages 278-286.
    10. Parra, David & Mauger, Romain, 2022. "A new dawn for energy storage: An interdisciplinary legal and techno-economic analysis of the new EU legal framework," Energy Policy, Elsevier, vol. 171(C).
    11. Andrea Reimuth & Veronika Locherer & Martin Danner & Wolfram Mauser, 2020. "How Does the Rate of Photovoltaic Installations and Coupled Batteries Affect Regional Energy Balancing and Self-Consumption of Residential Buildings?," Energies, MDPI, vol. 13(11), pages 1-18, May.
    12. Best, Rohan & Li, Han & Trück, Stefan & Truong, Chi, 2021. "Actual uptake of home batteries: The key roles of capital and policy," Energy Policy, Elsevier, vol. 151(C).
    13. 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).
    14. Tsao, Yu-Chung & Thanh, Vo-Van & Lu, Jye-Chyi, 2022. "Efficiency of resilient three-part tariff pricing schemes in residential power markets," Energy, Elsevier, vol. 239(PD).
    15. Alipour, Mohammad & Taghikhah, Firouzeh & Irannezhad, Elnaz & Stewart, Rodney A. & Sahin, Oz, 2022. "How the decision to accept or reject PV affects the behaviour of residential battery system adopters," Applied Energy, Elsevier, vol. 318(C).
    16. Best, Rohan & Chareunsy, Andrea & Li, Han, 2021. "Equity and effectiveness of Australian small-scale solar schemes," Ecological Economics, Elsevier, vol. 180(C).
    17. Guang, Fengtao & He, Yongxiu & Wen, Le, 2019. "Impacts of hybrid time-varying tariffs on residential electricity demand: The case of Zhejiang Province," Utilities Policy, Elsevier, vol. 61(C).
    18. Nnaemeka Vincent Emodi & Scott Dwyer & Kriti Nagrath & John Alabi, 2022. "Electromobility in Australia: Tariff Design Structure and Consumer Preferences for Mobile Distributed Energy Storage," Sustainability, MDPI, vol. 14(11), pages 1-18, May.
    19. Manuel de Villena, Miguel & Jacqmin, Julien & Fonteneau, Raphael & Gautier, Axel & Ernst, Damien, 2021. "Network tariffs and the integration of prosumers: The case of Wallonia," Energy Policy, Elsevier, vol. 150(C).
    20. Zhou, Hou Sheng & Passey, Rob & Bruce, Anna & Sproul, Alistair B., 2021. "Aggregated impact of coordinated commercial-scale battery energy storage systems on network peak demand, and financial outcomes," Renewable and Sustainable Energy Reviews, Elsevier, vol. 144(C).
    21. Ahmad, Ali, 2021. "Distributed energy cost recovery for a fragile utility: The case of Électricité du Liban," Utilities Policy, Elsevier, vol. 68(C).
    22. Dina A. Zaki & Mohamed Hamdy, 2022. "A Review of Electricity Tariffs and Enabling Solutions for Optimal Energy Management," Energies, MDPI, vol. 15(22), pages 1-17, November.
    23. Darghouth, Naïm R. & Barbose, Galen & Zuboy, Jarett & Gagnon, Pieter J. & Mills, Andrew D. & Bird, Lori, 2020. "Demand charge savings from solar PV and energy storage," Energy Policy, Elsevier, vol. 146(C).
    24. Khalilpour, Kaveh R. & Lusis, Peter, 2020. "Network capacity charge for sustainability and energy equity: A model-based analysis," Applied Energy, Elsevier, vol. 266(C).
    25. Claudia Gunther & Wolf-Peter Schill & Alexander Zerrahn, 2019. "Prosumage of solar electricity: tariff design, capacity investments, and power system effects," Papers 1907.09855, arXiv.org.

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