Energy | Electricity | Working Paper
Rate design with distributed energy resources and electric vehicles : a Californian case study
11 February 2021
BY: FREITAS GOMES Icaro Silvestre, Yannick Perez, SUOMALAINEN Emilia
The high penetration of distributed energy resources and electric vehicles is changing the way the electricity system is managed. In turn, the way utilities have been recovering their expenditures through tariffs needs reformulation. We investigate the impact of different retail tariff designs from a Californian scenario on private investment incentives and cost-shifting using solar PVs, stationary batteries, and electric vehicles. The commercial private facilities studied do not own the vehicles and the vehicle owners receive compensation for energy services provided, which strongly depends on the type of tariff applied. We found that energy-based tariffs with on-peak periods synchronized with solar PV production brought the highest private gains, but with high cost-shifting. On the other hand, the capacity-based tariffs reduced the economic benefits and cost-shifting concomitantly, mainly when on-peak periods defined by the rate matched the most constrained grid time window. Batteries are incentivized mostly to offset maximum demand charges rather than to arbitrage energy, but this will strongly depend on the spread between on-peak and off-peak periods. Coincident peak rates, coupled with EVs, can bring high remuneration for EV owners, second-highest net present value, and second-lowest cost-shifting among all rates. Finally, we derive policy implications from the results and earmark more sophisticated tariff designs for investigation.
logo cadmus Read it on Cadmus Download in open access

LATEST FSR PUBLICATIONS

Dataset
This dataset is composed of five indicators which provide information on the economic and environmental performance of sectors covered by the European Union’s Emissions Trading Scheme (EU ETS). The focus [...]
Other
On 21 February 2024 the European Commission Directorate General for Mobility and Transport in cooperation with the Florence School of Regulation hosted an academic conference to explore opportunities and challenges [...]
Other
Rail has a key role to play in making transport more efficient and sustainable in the EU and elsewhere. However, increasing passenger and cargo volumes require investment in infrastructure, and [...]
Technical Report
In this work, we present the major application and impact areas of Contracts-for-Difference (CfDs) in a European context, describe the most relevant design dimensions and discuss several design packages for [...]
Other
After years of record announcements, frantic policy development and the establishment of substantial public support mechanisms, the clean hydrogen sector is nearing an inflexion point. Many clean hydrogen projects have [...]
Other
The safeguarding of critical offshore energy infrastructure has assumed a heightened level of urgency in the wake of the Nord Stream pipeline explosions in September 2022 and the suspected sabotage [...]

Join our community

To meet, discuss and learn in the channel that suits you best.

scroll

top