Design and Impact of Grid Tariffs

Christian Winzer () and Patrick Hensler-Ludwig
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Christian Winzer: ZHAW School of Management and Law, Center for Energy and Environment, 8400 Winterthur, Switzerland
Patrick Hensler-Ludwig: ZHAW School of Management and Law, Center for Energy and Environment, 8400 Winterthur, Switzerland

Energies, 2024, vol. 17, issue 6, 1-25

Abstract: We propose a novel grid tariff design proportional to grid load and analyze its performance in comparison to other grid tariff designs with regards to (i) effectiveness, (ii) efficiency, (iii) profitability of technologies and (iv) equity. In the case of a large share of automated loads, time-of-use tariffs and critical peak prices create problematic new rebound peaks. Direct load control and capacity prices can reduce grid load without rebound peaks but are less effective at reducing both grid and energy costs. The novel tariff design proportional to the grid load can reduce both grid and energy costs but needs to be designed appropriately to avoid rebound peaks. Tariff impacts on the profitability of different technologies are more pronounced than equity impacts because households from all income brackets may be equipped with PV and flexible technologies.

Keywords: grid tariff; demand response; automatic load-control (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2024
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