Dynamic tariff design for a robust smart grid concept: An analysis of global vs. local incentives

Abstract

With the on-going decentralization of the energy system, the role of distributed small scale consumers and producers increasingly gains significance. Encouraged by the importance of finding a cost-efficient and robust approach for flexible appliances, a proposed structure for a simplified dynamic tariff is analyzed in this study. The tariff is designed to enable selective shifting of load and decentralized generation. Its schedule is based on a complex reference signal. This study focuses on the choice of a fitting tariff incentive. A global and a local reference represented by an electricity spot market price and local distribution grid loads were considered. An analysis of the tariff requirements was carried out. The correlation between the created local and global tariffs was calculated. Critical peak load behavior of the tariff signals was analyzed. It is shown that the EPEX Day Ahead price can be used as a reliable global incentive signal for dynamic tariffs without impairing local grid load problems.