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research article

Balancing DSO interests and PV system economics with alternative tariffs

Pena-Bello, Alejandro
•
Junod, Robin  
•
Ballif, Christophe  
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October 5, 2023
Energy Policy

Distributed rooftop photovoltaics (PV) is one of the pillars of the energy transition yet their widespread integration strains grids, leading to over-voltage, reverse power flow, and infrastructure strain. Furthermore, increased PV self-consumption reduces imported electricity, posing challenges for cost recovery by Transmission System Operators (TSOs) and Distribution System Operators (DSOs), whose grid costs were traditionally tied to volumetric tariffs. To investigate whether alternative tariffs could mitigate PV impacts at the distribution level without hampering PV development, we assess five electricity tariffs that could help the DSOs to recover the costs of maintaining the distribution grid. We also analyze their effects on private storage investment and their implications for urban, semi-urban, and rural low-voltage networks. We found that tariffs with a capacity-based component promote further adoption of PV and storage. At the same time, they allow the DSOs to recover the grid cost without incurring relevant economic differences for the customer. Our study found that alternative tariffs like dynamic and capacity-based tariffs promote the adoption of storage and PV systems. While no single tariff alone can fully mitigate PV impacts at the distribution level, our results point towards the need of managing PV export through solutions like PV curtailment.

  • Details
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Type
research article
DOI
10.1016/j.enpol.2023.113828
Web of Science ID

WOS:001088489300001

Author(s)
Pena-Bello, Alejandro
Junod, Robin  
Ballif, Christophe  
Wyrsch, Nicolas  
Date Issued

2023-10-05

Publisher

Elsevier Sci Ltd

Published in
Energy Policy
Volume

183

Article Number

113828

Subjects

Technology

•

Life Sciences & Biomedicine

•

Pv

•

Energy Storage

•

Battery

•

Electricity Tariffs

Editorial or Peer reviewed

REVIEWED

Written at

EPFL

EPFL units
PV-LAB  
FunderGrant Number

Romande Energie

Available on Infoscience
February 16, 2024
Use this identifier to reference this record
https://infoscience.epfl.ch/handle/20.500.14299/203921
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