Type: Working Paper
Rate design with distributed energy resources and electric vehicles : a Californian case study
Working Paper, EUI RSC, 2021/13, Florence School of Regulation, [Energy], [Electricity]
FREITAS GOMES, Icaro Silvestre, PEREZ, Yannick, SUOMALAINEN, Emilia, Rate design with distributed energy resources and electric vehicles : a Californian case study, EUI RSC, 2021/13, Florence School of Regulation, [Energy], [Electricity] - https://hdl.handle.net/1814/69861
Retrieved from Cadmus, EUI Research Repository
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.
Cadmus permanent link: https://hdl.handle.net/1814/69861
Series/Number: EUI RSC; 2021/13; Florence School of Regulation; [Energy]; [Electricity]
Publisher: European University Institute
Keyword(s): Electric vehicle Stationary battery Photovoltaic energy Tariff design L51 L94 L97 Q42 Q48 Q55
Sponsorship and Funder information:
This work was financially supported by the Institut VEDECOM, a French Public-Private research institute and one of the Institutes for the Energy Transition (Instituts pour la transition ´energétique, ITE) under the Shared Mobility and Energy research domain in the ANTHEM research group.