Effect Of Grid Tariffs On Demand-side Management In All-electric Buildings In Norway

Abstract

The increased share of inflexible, renewable energy sources in power systems is challenging the balancing of demand and supply. Rapid and unpredictable load variations might require large power grid capacities to ensure system adequacy. These challenges can be partially dealt with through controlling flexible loads in buildings (i.e. demand-side management (DSM)), however, energy-based grid tariffs do not provide incentives to shave peak loads. This paper evaluates how power-based grid tariffs affect the value of demand-side management in all-electric buildings. Three power-based grid tariff schemes, in addition to an energy-only scheme, have been evaluated to investigate incentives provided for (1) increased energy efficiency and (2) peak load shaving through DSM. The grid tariffs are evaluated for a single family house in Norway in 96 cases considering different building envelopes, heating systems and electric units. The results show that the power-based grid tariffs enable lower energy bills for consumers through heat load management that reduces peak load.