Smart grid, load management and dynamic pricing for electricity: Simulation results from a field project in Switzerland

Abstract

The electricity sector is in transition towards a market where the roles of the operators and institutional actors are changing. The rise in production from renewable energy sources is determining a move from a centrally, fossil-fuel generation to a local distributed one with, among the other things, implications in terms of volatility, intermittency and reserve ‘backup’ capacity. This renewed and challenging scenario represents the basis for the Swiss2Grid pilot project. Its main objective is the development of an innovative approach for the grid load management based on the adoption of an active algorithm (Household Appliance Controller (HAC)) located on individual homes – then decentralized – governed by simple network rules. The goal is to reduce the level of complexity of the system, flattering at the same time the peak load curve. This load optimization is intended also having positive effects in terms of consumers’ bills expenditure. The amount of potential costs reduction of selected consumers, associated with a load shifting by HAC, has been estimated for several price scenario hypothesis, sketched in order to find the price scheme that better fits to the new consumption’s profile. In detail, we tested time constant rates as well as time variable ones, from flat rates to real prices. This project has indeed given us the opportunity to investigate about the use – and the actual advantages – of real-time prices for electricity combined with enabling technologies and on the new roles of utilities and Distribution System Operators (DSOs).