Abstract
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.
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 language | English |
|---|---|
| Title of host publication | Proceedings of the 25th International Conference on Electricity Distribution 2019 |
| Number of pages | 5 |
| Publisher | Cired |
| Publication date | 2019 |
| Article number | 942 |
| ISBN (Print) | 978-2-9602415-0-1 |
| Publication status | Published - 2019 |
| Event | 25th International Conference on Electricity Distribution - IFEMA North convention centre, Madrid, Spain Duration: 3 Jun 2019 → 6 Jun 2019 http://www.cired2019.org/ |
Conference
| Conference | 25th International Conference on Electricity Distribution |
|---|---|
| Location | IFEMA North convention centre |
| Country/Territory | Spain |
| City | Madrid |
| Period | 03/06/2019 → 06/06/2019 |
| Internet address |