Power-based Tariffs Boosting Customer-side Energy Storages

This paper considers how power-based distribution tariffs encourage electricity end-users to invest in energy storages to reduce their peak loads. The study uses actual automatic meter reading (AMR) data from 30 000 customers the annual electricity consumption of which is less than 50 MWh. The customers locate in the area of a Finnish distribution system operator (DSO) operating in an urban environment. The results of the paper indicate that the power-based tariffs provide incentives to customers invest in energy storages to reduce their peak loads. The energy storage investment can be paid back with the savings of a lower power costs in distribution fees.