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Keep it simple: time-of-use tariffs in high-wind scenarios

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journal contribution
posted on 02.10.2014, 14:01 by Philipp Grunewald, Eoghan McKenna, Murray ThomsonMurray Thomson
Price signals have been suggested to bring about greater demand side flexibility and thus support the integration of variable sources of energy, such as wind. A conflict exists between keeping these signals simple for consumers, while making responses appropriate for increasingly complex supply–demand balancing dynamics in future. This study reviews some of the demand responses observed in time-of-use (ToU) tariff trials and assesses their effectiveness in scenarios with higher levels of wind. The authors simulate wholesale real-time prices for high-wind scenarios as a benchmark tariff. Simple tariff structures are compared against real-time prices for the extent to which they can ‘nudge’ demand in the ‘right direction’. They present results which suggest that even in high-wind scenarios, simple ToU tariffs could have a beneficial effect on overall system costs. The load shifting and reduction behaviour observed under ToU trials could lower energy costs by between 4 and 6% without the need for complex price signals.

Funding

This work was supported by the Engineering and Physical Sciences Research Council, UK, within the HiDEF Supergen project (EP/G031681/1), the Transformation of the Top and Tail of Energy Networks project (EP/I031707/1), and the Realising Transition Pathways project (EP/K005316/1). The authors gratefully acknowledge data from the UK Meteorological Office, the National Centres for Environmental Prediction, Eirgrid Group, and the Irish Single Electricity Market Operator.

History

School

  • Mechanical, Electrical and Manufacturing Engineering

Research Unit

  • Centre for Renewable Energy Systems Technology (CREST)

Published in

IET Renewable Power Generation

Volume

In Press

Pages

8 - ?

Citation

GRÜNEWALD, P., MCKENNA, E. and THOMSON, M., 2015. Keep it simple: time-of-use tariffs in high-wind scenarios. IET Renewable Power Generation, 9(2), pp. 176-183.

Publisher

IET © the authors

Version

VoR (Version of Record)

Publisher statement

This work is made available according to the conditions of the Creative Commons Attribution 3.0 Unported (CC BY 3.0) licence. Full details of this licence are available at: http://creativecommons.org/licenses/by/3.0/

Publication date

2015

Notes

This is an open access article published by the IET under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/3.0/)

ISSN

1752-1424

Language

en

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