Impact of distribution tariffs on prosumer demand response

Distributed energy resources (DERs) may enable prosumers to deliver demand response under dynamic pricing schemes. Facing wholesale market prices, the DER scheduling of a profit-maximising prosumer minimises total system cost as well. However, regulated electricity bill components, i.a., distribution tariffs for recovering grid costs, distort these price signals. To study impact tariff structures on scheduling, we develop short-term linear optimisation model that determines cost-optimal schedule based prices and tariff. We compare five four combinations PV, batteries, heat pumps, define two metrics characterise results: (i) novel ‘relative flexibility value’, which quantifies inefficiencies, (ii) ‘rate self-consumption’. In case study, show how make trade-offs between depending structure. describe mechanisms through different alter operations, quantify tariffs' cost. Generally, find types stimulate self-consumption increase vice versa.