LAPSE:2023.22685
Published Article

LAPSE:2023.22685
A Simple Distribution Energy Tariff under the Penetration of DG
March 24, 2023
Abstract
In a scenario where distributed generation infrastructure is increasing, the impact of that integration on electricity tariffs has captured particular attention. As the distribution sector is mainly regulated, tariff systems are defined by the authority. Then, tariffs must be simple, so the methodology, criteria, and procedures can be made public to ensure transparency and responsiveness of the customers to price signals. In the aim of simplicity, tariff systems in current practices mostly consist of volumetric charges. Hence, the reduction of the energy purchased from the distribution network jeopardizes the ability of the tariff system to ensure recovery of the total regulated costs. Although various works have captured this concern, most proposals present significant mathematical complexity, contrasting with the simplicity of current practices and limiting its regulatory applicability. This work develops a tariff system that captures the basic elements of distribution systems, trying to maintain the simplicity of current practices, ensuring recovery of the total regulated cost under the penetration of distributed generation, and incentivizing through price signals operational efficiency. A simulation will be presented to discuss numerical results.
In a scenario where distributed generation infrastructure is increasing, the impact of that integration on electricity tariffs has captured particular attention. As the distribution sector is mainly regulated, tariff systems are defined by the authority. Then, tariffs must be simple, so the methodology, criteria, and procedures can be made public to ensure transparency and responsiveness of the customers to price signals. In the aim of simplicity, tariff systems in current practices mostly consist of volumetric charges. Hence, the reduction of the energy purchased from the distribution network jeopardizes the ability of the tariff system to ensure recovery of the total regulated costs. Although various works have captured this concern, most proposals present significant mathematical complexity, contrasting with the simplicity of current practices and limiting its regulatory applicability. This work develops a tariff system that captures the basic elements of distribution systems, trying to maintain the simplicity of current practices, ensuring recovery of the total regulated cost under the penetration of distributed generation, and incentivizing through price signals operational efficiency. A simulation will be presented to discuss numerical results.
Record ID
Keywords
distributed energy economics, distributed photovoltaics, distributed storage
Subject
Suggested Citation
Borquez J, Chavez H, Barbosa KA, Jamett M, Acuna R. A Simple Distribution Energy Tariff under the Penetration of DG. (2023). LAPSE:2023.22685
Author Affiliations
Borquez J: Departamento de Ingenieria Electrica, Universidad de Santiago de Chile, Estación Central, Santiago 9160000, Chile
Chavez H: Departamento de Ingenieria Electrica, Universidad de Santiago de Chile, Estación Central, Santiago 9160000, Chile
Barbosa KA: Departamento de Ingenieria Electrica, Universidad de Santiago de Chile, Estación Central, Santiago 9160000, Chile [ORCID]
Jamett M: Departamento de Ingenieria Electrica, Universidad de Santiago de Chile, Estación Central, Santiago 9160000, Chile
Acuna R: Departamento de Ingenieria Electrica, Universidad de Santiago de Chile, Estación Central, Santiago 9160000, Chile
Chavez H: Departamento de Ingenieria Electrica, Universidad de Santiago de Chile, Estación Central, Santiago 9160000, Chile
Barbosa KA: Departamento de Ingenieria Electrica, Universidad de Santiago de Chile, Estación Central, Santiago 9160000, Chile [ORCID]
Jamett M: Departamento de Ingenieria Electrica, Universidad de Santiago de Chile, Estación Central, Santiago 9160000, Chile
Acuna R: Departamento de Ingenieria Electrica, Universidad de Santiago de Chile, Estación Central, Santiago 9160000, Chile
Journal Name
Energies
Volume
13
Issue
8
Article Number
E1910
Year
2020
Publication Date
2020-04-14
ISSN
1996-1073
Version Comments
Original Submission
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PII: en13081910, Publication Type: Journal Article
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LAPSE:2023.22685
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https://doi.org/10.3390/en13081910
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[v1] (Original Submission)
Mar 24, 2023
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Mar 24, 2023
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