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On the Importance of Grid Tariff Designs in Local Energy Markets

Schreck, Sebastian ; Sudhoff, Robin ; Thiem, Sebastian ; Niessen, Stefan (2022)
On the Importance of Grid Tariff Designs in Local Energy Markets.
In: Energies, 2022, 15 (17)
doi: 10.26083/tuprints-00022317
Article, Secondary publication, Publisher's Version

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Item Type: Article
Type of entry: Secondary publication
Title: On the Importance of Grid Tariff Designs in Local Energy Markets
Language: English
Date: 14 September 2022
Place of Publication: Darmstadt
Year of primary publication: 2022
Publisher: MDPI
Journal or Publication Title: Energies
Volume of the journal: 15
Issue Number: 17
Collation: 25 Seiten
DOI: 10.26083/tuprints-00022317
Corresponding Links:
Origin: Secondary publication DeepGreen

Local Energy Markets (LEMs) were recently proposed as a measure to coordinate an increasing amount of distributed energy resources on a distribution grid level. A variety of market models for LEMs are currently being discussed; however, a consistent analysis of various proposed grid tariff designs is missing. We address this gap by formulating a linear optimization-based market matching algorithm capable of modeling a variation of grid tariff designs. A comprehensive simulative study is performed for yearly simulations of a rural, semiurban, and urban grids in Germany, focusing on electric vehicles, heat pumps, battery storage, and photovoltaics in residential and commercial buildings. We compare energy-based grid tariffs with constant, topology-dependent and time-variable cost components and power-based tariffs to a benchmark case. The results show that grid tariffs with power fees show a significantly higher potential for the reduction of peak demand and feed-in (30-64%) than energy fee-based tariffs (8-49%). Additionally, we show that energy-based grid tariffs do not value the flexibility of assets such as electric vehicles compared to inflexible loads. A postprocessing of market results valuing the reduction of power peaks is proposed, enabling a compensation for the usage of asset flexibility.

Uncontrolled Keywords: local energy market, distribution grid, flexibility, electric vehicles, market design, linear optimization
Status: Publisher's Version
URN: urn:nbn:de:tuda-tuprints-223172
Additional Information:

This article belongs to the Special Issue Energy Transition: Decentralization, Electric Vehicles, and Local Energy Markets

Classification DDC: 600 Technology, medicine, applied sciences > 620 Engineering and machine engineering
Divisions: 18 Department of Electrical Engineering and Information Technology > Technology and Economics of Multimodal Energy Systems (MMES)
Date Deposited: 14 Sep 2022 12:12
Last Modified: 14 Nov 2023 19:05
SWORD Depositor: Deep Green
URI: https://tuprints.ulb.tu-darmstadt.de/id/eprint/22317
PPN: 499600150
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