Network Pricing for Energy Storage in Distribution Networks

Abstract

Traditionally, consumers were charged for using the distribution network based on their net electricity consumption for the considered period of time. But, charging the end users (with installed solar PVs) in this way, reduces their contribution to the recuperation process of network cost. With such consumers, there arises the need to redesign the distribution network pricing mechanisms in the context of active consumers so that network cost recovery can be done. This paper proposes the design of electricity distribution network tariffs considering the active residential consumers. The main objective is to design and understand the distribution network pricing with economic efficiency to recover the network cost from a DSO's point of view and to quantify and address the benefits provided by an Energy Storage System in a distribution network. This is done by incentivizing the customer response and deferring network reinforcements. The proposed method has been tested on realistic data, and the results show that the proposed method can allocate the network charges optimally.