Bergaentzlé, C., Skytte, K., Olsen, O.J., Soysal, E.R., and Katz, J. “Grid Tariffs to Support Flexibility in Decarbonised Energy Systems”

The paper “Grid Tariffs to Support Flexibility in Decarbonised Energy Systems” (Bergaentzlé, C., Skytte, K., Olsen, O.J., Soysal, E.R., and Katz, J.) will be presented at the 6th Conference on the Regulation of Infrastructures (16 June 2017). 

ABSTRACT

The steady growth in variable renewable energies in the electricity supply raises new needs to unlock flexibility. The electrification of other energy sectors such as district heating and cooling, transport, and gas by power-to-gas, brings new opportunities to such flexibility. However, current grid tariffs for the use of electricity may act as a regulatory barrier that limits these flexibility options.
This study focuses on the impacts of energy-based grid tariff design, that is the most commonly used in current European grid tariffs applied to power-to-heat technologies used in district heating. It shows that current grid tariff structures are unsuited to benefit from the synergies between electricity and heat. Based on a review of the regulatory objectives and principles behind rate making, it tests alternative tariff structures to alleviate the barrier to a flexible use of power-to-heat.
We illustrate through a quantitative assessment the outcomes of implementing alternative tariff designs in district heating in Denmark and Sweden and qualitatively assess their compliance with the main regulatory principles.

ABOUT THE AUTHORS

Claire Bergaentzlé is a postdoc researcher at Denmark Technical University (DTU) since 2016. Her research activities focus on the flexibility emerging from the electrification and coupling of energy systems to support the integration of variable renewable energies in the Nordic region. She is also involved in the analysis of the regulatory schemes and the coordination and governance issues related to the development of offshore grid infrastructures to connect offshore wind farms in the Baltic Sea.

She obtained her PhD in 2015 at the University of Grenoble-Alpes, France. She investigated the regulation of power grid infrastructures in the prospect of adopting smart grid technologies and assessed the impacts of demand response on economic efficiency gains and missing money. She also gave lectures in Economics at the University of Grenoble-Alpes and was hired as individual lecturer at Grenoble Polytechnic National Institute (Grenoble-INP) and Grenoble School of Management, teaching Regulation of Network Industries and Power Markets Economics.

Klaus Skytte is Head of Department Energy Economics and Regulation at Danish Technical University, Faculty of Management and Engineering. He is Energy Analyst with strong academic profile and analytical skills. More than 16 years of experience in energy planning and system analysis. An entrepreneur who sees new perspectives and solutions at different issues.


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