Technical and Economic Impact of Residential BESS on Distribution Systems under Alternative Tariff Regimes

Philip James Douglass, Sebastian Martens, Peng Hou, Guangya Yang

Research output: Chapter in Book/Report/Conference proceedingArticle in proceedingsResearchpeer-review

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Residential battery energy storage systems (BESS) will alter power flows in distribution systems, which in turn will impact DSO revenue streams. This paper simulates
operation of residential BESS when exposed to varying volumetric (€/kWh) and capacity (€/kW) tariffs. The BESS is optimized for maximizing private profit when trading in the day-ahead market (DAM), assuming a perfect forecast. Aggregate behavior of a population of 300 prosumers with BESS is compared for the alternative tariff scenarios. 24-hour load profiles suitable for planning are derived for each tariff scenario. The simulations show that optimal BESS operation with volumetric tariffs will lead the range of load, the difference between peak consumption to peak production, to almost double relative to the base case without BESS, as BESS
take advantage of fluctuations in DAM prices. Capacity tariffs can reduce the range of load by almost half relative to the base case, but at the expense of an increased cost of energy in the DAM. Analysis shows that capacity tariffs are most effective at utilizing network capacity, with BESS customers typically earning 2.30 € per month in the DAM for each kW of network capacity they utilize, while volumetric tariffs lead BESS customers to earn only 1.25 € per customer per month.
Original languageEnglish
Title of host publicationProceedings of the 25th International Conference on Electricity Distribution 2019
Number of pages5
Publication date2019
Article number942
ISBN (Print)978-2-9602415-0-1
Publication statusPublished - 2019
Event25th International Conference on Electricity Distribution - IFEMA North convention centre, Madrid, Spain
Duration: 3 Jun 20196 Jun 2019


Conference25th International Conference on Electricity Distribution
LocationIFEMA North convention centre
Internet address

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