Electricity Tariff Design via Lens of Energy Justice

Distributed Energy Resources (DERs) can significantly affect the net social benefit in power systems, raising concerns pertaining to distributive justice and equity. Electricity tariff DERs share a symbiotic relationship whereby design of former directly impacts economic efficiency equity system. Current approaches suffer from opaque efficiency-equity trade-offs are also agnostic externalities that both Therefore, this paper develops justice-cognizant framework improves operational savings system without sacrificing distributional equity, encompasses welfare, costs environmental public health impacts, socio-economic demographic characteristics electricity consumers. The proposed is based on Single Leader Follower (SLSF) game incorporating multi-objective optimization problem, evaluated four different structures. SLSF reformulated as Multi-Objective Problem with Equilibrium Constraints (MOPEC) solved by integrating objective sum method for Scholtes’s relaxation technique equilibrium constraints. We compare using 11-zone New York ISO 7-bus Manhattan networks. results demonstrate justice-cognizant, spatially- temporally-granular tariffs ensure increase at lower energy burden