Incentivizing flexible power-to-heat utilization in district heating systems by redesigning electricity grid tariff schemes
Authors
Johannsen, Rasmus Magni ; Arberg, Erica
Term
4. Term
Publication year
2019
Submitted on
2019-06-07
Pages
129
Abstract
Danmarks fjernvarmesektor rummer et stort potentiale for el-til-varme-teknologi, hvor elektricitet omdannes til varme. Det kan øge fleksibiliteten mellem varme- og elsektoren. Dette speciale undersøger, hvordan et redesign af de nuværende flade elnettariffer (netbetalinger med samme pris uanset tidspunkt) påvirker de forretningsøkonomiske incitamenter til fleksibel drift af el-til-varme i et fjernvarmeområde. Simulationsværktøjet energyPRO bruges til at analysere tre nye tarifmodeller: 1) en reduceret fast (flat-rate) nettarif, 2) en fast tidsdifferentieret (time-of-use) tarif med forskellige priser på bestemte tidspunkter, og 3) en dynamisk tarif, hvor prisen ændrer sig over tid. Relaterede barrierer belyses gennem interviews med nøgleinteressenter. Resultaterne viser, at de redesignede tariffer kan forbedre den forretningsøkonomiske bæredygtighed af fleksibel el-til-varme. Samtidig kræver tarifudformningen omhu, så netoperatørernes nødvendige indtægter sikres. Barriereanalysen peger især på manglen på stærke forretnings- og samfundsøkonomiske incitamenter for fleksibel drift. Derudover hæmmer øget kompleksitet for både netoperatører og forbrugere en hurtig implementering.
Denmark’s district heating sector has great potential for power-to-heat technology, which converts electricity into heat. This can increase flexibility between the heat and electricity sectors. This thesis examines how redesigning the current flat-rate electricity grid tariffs (network charges with the same price regardless of time) affects the business incentives for flexible power-to-heat operation in a district heating area. Using the simulation tool energyPRO, three tariff options are tested: 1) a reduced flat-rate tariff, 2) a fixed time-of-use tariff with different charges at set times, and 3) a dynamic tariff with charges that vary over time. Interviews with key stakeholders are used to identify perceived barriers. The results show that redesigned tariffs can improve the business viability of flexible power-to-heat. However, tariff schemes must be carefully designed to ensure grid operators keep the revenue they need. The barrier assessment highlights a current lack of strong business and socio-economic incentives for flexible operation. Increased complexity for both grid operators and consumers also hinders immediate implementation.
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