10 1016@j Epsr 2020 106763
10 1016@j Epsr 2020 106763
10 1016@j Epsr 2020 106763
A R T I C LE I N FO A B S T R A C T
Keywords: A high share of distributed photovoltaic (PV) generation in low-voltage networks may lead to over-voltage, and
Grid stability line/transformer overloading. To mitigate these issues, we investigate how advanced electricity tariffs could
Mixed-integer linear programming ensure safe grid operation while enabling building owners to recover their investment in a PV and storage
Electricity tariff design system. We show that dynamic volumetric electricity prices trigger economic opportunities for large investments
Cost optimization
in PV and battery capacity but lead to more stress on the grid while capacity and block rate tariffs mitigate over-
Photovoltaic
voltage and decrease line loading issues. However, block rate tariffs significantly decrease the optimal PV in-
stallation size.
⁎
Corresponding author.
E-mail addresses: jordan.holweger@epfl.ch (J. Holweger), lionel.bloch@epfl.ch (L. Bloch), christophe.ballif@epfl.ch (C. Ballif),
nicolas.wyrsch@epfl.ch (N. Wyrsch).
https://doi.org/10.1016/j.epsr.2020.106763
Received 1 October 2019; Received in revised form 17 April 2020; Accepted 2 August 2020
Available online 10 August 2020
0378-7796/ © 2020 Elsevier B.V. All rights reserved.
J. Holweger, et al. Electric Power Systems Research 189 (2020) 106763
Op. costopex = ∑ ox p
p ∈ vol, cap, block (3a)
T
Volumetric ox vol = ∑ [P impt ·t impt − P expt ·t expt ]·tst
t=1 (3b)
M
Capacityox cap = ∑ Pmaxm ·t max
m=1 (3c)
T
Block rate oxblock = ∑ k =max (P impt ·aki mp ·tst + bki mp)
1⋯K
t=1
T
− ∑ min (P expt ·ake xp ·tst + bke xp)
k=1⋯K
t=1 (3d)
e
where t impt , t xpt
are the volumetric import and export tariff respectively
(in CHF/kWh), tst is the simulation time-step, the maximum power for
Fig. 1. Process workflow. month m, P maxm , is calculated by requiring that both the import and the
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J. Holweger, et al. Electric Power Systems Research 189 (2020) 106763
Fig. 3. A map of the considered low-voltage grid (black lines). The circle diameters are scaled according to the PV potential capacity (orange) and annual energy
demand (violet). The relative circle diameter gives an indication on the potential PV penetration considering an annual irradiation of 1000 h.
export power be smaller than this variable, the pairs of coefficients price of one unit of energy that is consumed under the optimized
aki mp , bki mp and ake xp , bke xp are the component of the piece-wise linear system. These indicators are defined for each building as follows (the
cost functions of buying, respectively selling energy, a representing the use of a subscript b has been omitted for better readability):
slope, or marginal cost,b the corresponding intercept term and simply pv pv
PV host = Pcap / Pcap ,max (4a)
ensure the continuity of the cost function (see the buy cost and sell cost
curve in Fig. 4). All these variables are parameters of the building op-
timization problems. Only P pvcap , E batc ap, Ptimp and Ptexp are the opti-
PV penetration = ∑ Ptp v/ ∑ Ptl oad
t t (4b)
mization decision variables. Variables P chat , P dist , P curt , P pvt and P max m
are intermediate decision variables constraint by the decision variables E batc ap
BAT auto =
and parameters. The reader should refer to [10] for the modeling de- mean daily consumption (4c)
tails of this optimization problem.
PV cur = ∑ P curt / ∑ P pvt
t t (4d)
2.2. Performance metrics
GU IMP, EXP = max(P imp, expt )/max(P load t)
t t (4e)
These metrics aim to assess the system design’s reaction, in terms of
equipment size and operation, and the network’s reaction, in terms of NPV = ∑ cft /(1 + r )t
voltage profile and line loading, when changing the electricity pricing t (4f)
structure. From a building design perspective, the PV hosting ratio, PV T
host (4a), is the ratio between the installed PV capacity and the max- ∑t = 1 cft − opex t0
DPP = T such as =0
imum PV potential capacity of the building. The PV penetration ratio, (1 + r )t (4g)
PV penetration (4b), compares the energy generated by the PV arrays
npv
with the annual energy demand. The battery autonomy ratio, BAT auto LCOE = l
L (·∑t P oadt ·TSt )
(4c), corresponds to the ratio between the battery capacity and the ∑i (4h)
(1 + r )i
mean daily energy demand of the building. This metric can be under-
stood as the fraction of a day that can be covered by the battery in the ∑t min(Ptl oad, Pte xp + Ptl oad − Pti mp)
event of a blackout. From an operation perspective, the PV curtailement SS =
∑t Ptl oad (4i)
ratio, PV cur (4d), is the fraction of the energy that is curtailed from the
PV generation. The self-sufficiency SS (4i) is the fraction of the energy where cft is the net cash flow (investment + maintenance cost +
demand that is self-covered by the PV-battery system. The definition of operational cost, including battery replacement) at time t and opex t0 is
(4i) is derived from [11]. To assess how the buildings interact with the the original operating cost without the investment in the PV and bat-
grid, we defined in [10] a grid usage ratio, GU IMP,EXP (4e), as the tery.
ratio between the maximum withdrawn/injected power and the max- The resolution of the power-flow equations allows for extracting the
imum load. Finally, from an economic perspective, the discounted voltage (in per unit, pu) at every node of the network and the current
payback period, dpp (4g), (time to recover the investment) is of crucial flowing through every line. Given the lines’ properties, in particular the
interest to evaluate the profitability of the proposed economic frame- maximum allowable current, a representative metric for grid conges-
work. The levelized cost of energy demand (lcoe )(4h) can be compared tion is the line loading level. We consider separately the situation when
with the import tariffs of each scenario and provide an indication of the the bus voltage at an injection point is above 1 pu and when it is below
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J. Holweger, et al. Electric Power Systems Research 189 (2020) 106763
1 pu, and use the 95th percentile of the bus voltage deviation. This (from similar buildings) and allocate smart-meter time-series to each
allows us to distinguish when there is a local excess of energy from meter. The roof’s surface area, azimuth, and tilt are known for each
when there is a local deficit of energy. Finally, one of the key issues for building. With this information, the maximum potential PV hosting
the high penetration of distributed stochastic generators is the reverse- capacity of each roof and then of each building could be calculated.
power flow occurring at the medium- to low-voltage transformer. For Fig. 3 shows this maximum PV capacity and the building’s annual en-
this reason, the load duration curve enables assessing the requirement ergy demand.
in terms of power that has to flow into and out of the low-voltage grid. Five tariff scenarios, and their corresponding coefficient from (3b),
(3c), (3d), are defined in Table 1. The first three scenarios consider
volumetric tariffs in which the costs/revenues are proportional to the
3. Case study
exchanged energy according to a given energy tariff. The first scenario
is a reference tariff that is constant throughout the day. The second
The methodology is applied to a case study in Rolle (Switzerland)
scenario, called ”solar”, promotes consumption when solar irradiance is
where a low-voltage distribution grid has been modeled (Fig. 3). The
higher by setting a low energy rate during the time period 11 h-15 h.
grid hosts 41 buildings. The properties of each building are known
thanks to publicly available geographical information system1. The
annual energy demand for each meter in the grid was provided, al-
1
lowing us to match the meters with real smart-meter measurements https://www.asitvd.ch/
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J. Holweger, et al. Electric Power Systems Research 189 (2020) 106763
a
The resulting designs are pictured in Fig. 5. In all scenarios, except
data from the geographical information system
b the block rate tariff, almost all the roofs are covered with PV leading to
same value for all buildings
a PV hosting value close to one. The block rate scenario however limits
the penetration of PV with a PV hosting of ca. 0.5. The reason is the
Table 3
nature of the block rate that favor smaller PV installation, because the
Computation time statistics
marginal export revenue decreases with increasing exported power.
Scenario Building optimization Load flow Regarding battery size, investment in such technology is driven by
economic opportunities, namely by variations in the electricity price
min max median total
[min] [min] [min] [h] [min] (solar and spot market tariff scenarios) or by a strong incentive to limit
the exchanged power (capacity tariff scenario). Although this last as-
reference 3.7 57.3 13.6 11.8 6.6 pect is also present in the block rate scenario, the incentive is lower,
solar 2.4 41.6 11.3 8.8 6.6
leading to lower relative battery size. In terms of grid usage, only the
spot market 2.4 43.6 13.1 10.2 6.8
capacity 31.8 147.2 90.4 60.6 6.6 capacity tariff and block rate tariff scenarios provide a clear stimulus to
block rate 43.5 321.2 103.9 81.2 6.6 reduce the maximum power exchanged with the grid. The spot market
and solar tariff scenarios, due to the volatility of electricity prices, tend
to increase the power injected or withdrawn from the grid. On the
The third scenario mirrors the spot market price (specifically the in- economic side, the discounted payback periods are similar, ranging
traday continous price from the EPEX market data2). The fourth sce- from 14 to 23 years for all scenarios. The median is, however, higher for
nario is a mix of a volumetric and capacity-based tariffs, for which the the block rate tariff, 21 years against 19 years for the other scenarios.
cost is proportional to the monthly maximum power exchanged with The relative size of the battery does not scale linearly with PV pe-
the grid and the energy consumed from the grid, while the revenue is netration, as depicted in Fig. 6a, except for the dynamic volumetric
proportional to the energy injected into the grid. The fifth scenario tariffs (spot market and solar). For the capacity and block rate tariffs,
considers a block rate tariff, in which the cost/revenue is proportional low PV penetration, underlying a small PV production, i.e. small PV
to the energy exchanged with the grid, but the energy cost depends on capacity, compared to the energy demand, tends to increase the battery
the power level at which the energy is exchanged. For each scenario, autonomy ratio in order to limit the imported power. Conversely, at
the coefficients of (3b), (3c) and (3d) that do not appear in Table 1 are high PV penetration, the battery autonomy tends to decrease for the
equal to zero. capacity and block rate tariffs. For the first case, the role of the battery
to cut injection peaks is replaced by the curtailment of the PV gen-
eration (Fig. 7). As curtailing is free (it is not imposed but it results from
2
EPEX price for 2018 https://www.epexspot.com/en/market-data/ the optimization of the system operation), there is no need to invest in
intradaycontinuous/intraday-table/-/CH batteries for this purpose. For the block rate scenario, high injection is
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J. Holweger, et al. Electric Power Systems Research 189 (2020) 106763
Fig. 5. PV hosting ratio, battery autonomy, grid usage ratio (import/export) and discounted pay back period for all scenarios. Metrics are defined in (4). Solid lines
are the median, dashed lines are the 75th percentile, and dotted lines are the 25th percentile.
Fig. 7. Ratio of energy curtailed and PV penetration. In the inset, the bars are
the weekly ratio of energy curtailed (left axis) and lines the weekly minimum
t exp (right axis).
Fig. 6. Upper (a), battery autonomy versus PV penetration, lower (b) self-suf-
ficiency level against the battery autonomy ratio.
not penalized; the marginal revenue is just decreased. Thus, it limits the Fig. 8. Export vs importgrid usage ratio.
profitability of having a high PV capacity compared to its energy de-
mand level, but it requires neither curtailment of the PV energy nor technologies since they provide economic opportunities to generate
investing in storage technologies. The fraction of energy curtailed is profit for the building owners. The capacity tariff promotes investment
zero for all scenarios except for the capacity and spot market tariffs. For in storage which main action is to reduce consumption peaks. The block
the latter, the small fraction of curtailed energy is due to negative spot rate tariff promotes smaller PV penetration (thus, PV capacity) and
market prices as shown in the inset of Fig. 7. As a general trend, a larger battery capacity but achieves a self-sufficiency level similar to the re-
battery size (relative to the building energy demand) increases the self- ference case. As pictured in Fig. 5, these considerations have an impact
sufficiency ratio as shown in Fig. 6b. This trend is very pronounced for on grid usage behavior. In particular, the grid usage ratios are higher
the spot market, solar and capacity tariffs, although a saturation ap- (regardless when importing or exporting) for both the spot market and
pears for the latter for large battery autonomy. solar tariff. It is especially pronounced for the spot market case. Con-
In summary, compared to the reference scenario, dynamic volu- versely, capacity tariffs significantly reduce the grid usage ratio for
metric tariffs (solar and spot market) promote investments in storage import, while the block rate tariff lowers both. Fig. 8 illustrates these
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J. Holweger, et al. Electric Power Systems Research 189 (2020) 106763
Fig. 9. Load duration curve at the transformer. Dots on the vertical axis indicate
the total installed PV capacity per scenario. The nominal transformer capacity is
400 kW. Negative values indicate power flow from the high-voltage toward the
low-voltage side.
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5. Conclusions
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