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Cited by 19Smart Grid Energy ManagementElectric Power System OptimizationElectric Vehicles and Infrastructure

Technical, Economic, Social and Regulatory Feasibility Evaluation of Dynamic Distribution Tariff Designs

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Christensen, Kristoffer, Ma, Zheng, Jørgensen, Bo Nørregaard·2021·Energies
DOI 10.3390/en14102860
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Abstract

The increasing number of distributed energy resources in the distribution grids creates the risk of grid congestion and the high cost of grid expansion. The implementation of the dynamic distribution grid tariffs can potentially avoid grid congestion. Meanwhile, the design and implementation of any distribution tariff need to consider and match the regional/national requirements. However, there is no sufficient evaluation method available to review and evaluate the feasibility of the dynamic distribution tariffs. Therefore, this paper introduces a feasibility evaluation method with four dimensions of technical, economic, social, and regulatory to review dynamic distribution tariffs. The literature on dynamic distribution tariffs is collected, and 29 dynamic distribution tariffs are selected and further categorized into five attributes of rationale, cost drivers, dynamics, events, and active demand. The evaluation results show that the time-of-use tariff is the most feasible dynamic distribution tariff, and the review of a proposed future distribution tariff model in Denmark verifies the evaluation method and results. The developed feasibility evaluation method for dynamic distribution tariffs can ensure the design and implementation of a dynamic distribution tariff to be feasible and applicable in a region.

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  • The aggregator approach suits DSOs operating under constraints that limit the adoption of fully dynamic tariffs.

    “From a regulatory and operational standpoint, the aggregator approach suits DSOs operating under constraints that limit the adoption of fully dynamic tariffs [4,5].”

    From A Multi-Agent, Laxity-Based Aggregation Strategy for Cost-Effective Electric Vehicle Charging and Local Transformer Overload Prevention (2025) · cites this paper as [5]

    The Introduction and §3.4 (page numbers unavailable) explain that DSO tariffs must meet regulatory requirements and that a real-time pricing scheme may fail the transparency requirement. The paper therefore supports the existence of constraints on dynamic tariffs, but it does not say that an aggregator approach suits DSOs facing those constraints; its mention of aggregators concerns forecast parameters. (LLM, conf=0.84)

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References 43 · Cited by 19

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Authors
Christensen, K., Ma, Z., & Jørgensen, B. N.
Affiliations
  • University of Southern Denmark (DK)
  • Center for Energy Informatics, University of Southern Denmark, Campusvej 55, 5230 Odense, Denmark
Corresponding author
Christensen, Kristoffer
ORCID
Venue
Energies
Publisher
MDPI AG
Published
2021-05-15
Volume
14
Issue
10
Pages
2860
ISSN
1996-1073 (ISSN-L)
DOI
10.3390/en14102860
OpenAlex
W3163780794
Cited by
19
References
43
Citations by year
2026: 2 · 2025: 4 · 2024: 2 · 2023: 5 · 2022: 3 · 2021: 3
FWCI
0.96
Type
journal article
Language
en
Open access
Licence
Locations
  • Energies (publishedVersion, cc-by)
  • University of Southern Denmark Research Portal (University of Southern Denmark) (submittedVersion, cc-by)
  • RePEc: Research Papers in Economics (submittedVersion)
  • DOAJ (DOAJ: Directory of Open Access Journals) (submittedVersion, cc-by-sa)
Funders
Innovationsfonden (8090-00069B)
Topics
  • Physical Sciences › Engineering › Electrical and Electronic Engineering › Smart Grid Energy Management
  • Physical Sciences › Engineering › Electrical and Electronic Engineering › Electric Power System Optimization
  • Physical Sciences › Engineering › Electrical and Electronic Engineering › Electric Vehicles and Infrastructure
Keywords
feasibility assessment, time-of-use pricing, distributed energy resources, grid congestion, active demand, energy regulation, electricity pricing, Denmark

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